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

To: Bridge Player who wrote (25162)	10/30/2006 4:57:31 PM
From: Paul Senior	Read Replies (2) \| Respond to of 78688

Bridge Player. It'd be misleading if I list out stocks in which I've made a "significant investment". Basically, I've found that my best investments (percentage gainers) turn out to be surprises to me. My largest investments cannot be presumed to be my best investments or my best ideas. Sometimes I'll make a relatively large investment in a stable, dividend-paying stock (where I have no expectation of a capital gain) just to offset volatility in a portfolio. Sometimes I'll pick an investment thesis and a-priori decide I'll average up if the thesis seems to be working out. So, for example, I've built significant positions in some oil-related stocks by buying small amounts (sometimes ever smaller amounts) as they've moved up. I wouldn't recommend or suggest anybody start a position in any of these now. It seems to me, rather than having "strong, positive opinions" and heavy weighting on a stock, I'm more likely to have such opinions on a particular sector. I seem to have a tendency to buy small amounts of a particular stock and then, either as I learn more or become more comfortable, I often expand by purchasing small amounts in other related companies. Some examples of that would be with Business Development Companies, hotel reits, clothing stores, auto companies, brokerage firms, etc. A good size weighting per sector with maybe a total of forty or more different positions. ---------------- For a specific idea from something held large in my portfolio, somebody might consider looking at COP. Here's a stock that is a significant holding for me. I've averaged up and I've averaged down. (Have not sold any shares.) Not very happy about the volatility I've experienced. Also I'm concerned I may have misjudged this stock as a value opportunity. My confidence level is low. I expect I will continue to hold (not add more -- too scared). Sometimes -- just sometimes -- such a stock as this turns out to be a decent investment.