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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: bruwin who wrote (22845)	12/25/2005 8:36:31 AM
From: Suma	Read Replies (1) \| Respond to of 78748

That was a very good post in my estimation. I wish that you would offer specificity... and give us more of those stocks that you would recommend predicated on your criteria.

To: bruwin who wrote (22845)	12/25/2005 3:58:42 PM
From: Spekulatius	Read Replies (1) \| Respond to of 78748

on this Board of Value orientated investors, the common thread is often how many stocks they’ve purchased which have lost them money I never incurred in my post that many of my stocks lost value. In fact, very few of my stocks lost value. of course with a larger portfolio, one is more likely to occur losses, but their effect on portfolio performance is of course lessened through diversification. It is apparent from you post that you believe that your method is fairly error proof. From my experience, no such method exists, as there is always a risk that even the best fundamental analysis is negated by inhonest management, fraud, or much more likely "stuff that just happens" and quickly changes the outlook of a company (and the stock price for that matter). last not least I second Suma's call to give more specifics on you 8 criteria or the stocks that you choose using them.

To: bruwin who wrote (22845)	12/25/2005 4:53:24 PM
From: Marc Hyman	Read Replies (1) \| Respond to of 78748

The end result of this approach is that one ends up with only a handful of QUALITY stocks compared with the generally accepted practice of large portfolios chosen, primarily, to reduce risk. Regardless of the 8 specific criteria you use you're still at risk for the non-financial things that can (and sometimes does) drive the price of a stock down. You might be able to figure out that a company might have exposure to lawsuits or patent issues, but how about a plane crash taking out the company top management, an earthquake that destroys company headquarters, a hurricane that destroys the infrastructure necessary to keep a factory running at peak efficiency. These things don't happen often, but they can have a very large impact when they do happen. I don't want 30% or 50% of the value of my portfolio susceptible to that kind of risk. // marc