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

To: Dale Baker who wrote (32470)	10/15/2008 2:27:01 PM
From: Jurgis Bekepuris	2 Recommendations Read Replies (2) \| Respond to of 78666

What market does or does not believe, does not matter. If we do not have our own beliefs about values of companies, we are not value investors. If we do not buy companies way below their intrinsic value, we are not value investors. Expecting that market will agree with you as a value investor is, sorry to say, a folly. If it did, the stock would not be at value price. BTW, to be clear, I am not arguing against having 60% or any other percentage of cash. I am just arguing that if there are values, one buys them. Holding cash is for times when there are no values. (And BTW one could make the case that "there are no values now, since companies will report losses for 10 years of grand depression", but this is not your reasoning).

To: Dale Baker who wrote (32470)	10/15/2008 2:32:47 PM
From: Paul Senior	Read Replies (1) \| Respond to of 78666

"If the market is wrong and the estimates are right, the returns will be huge. If not, losses will continue to mount." Actual earnings could of course drop significantly from estimates. There may still be earnings though and p/e's of a decade low. As for losses, if you mean it's stock market losses that will continue, my view is that we're pretty close to having all who wanted to sell selling, and all who are standing by and waiting, they are doing that too. For me, I'd rather put my money into a variety of dividend/distribution paying stocks, than have it in cash. Rather take my chances than have the sure purchasing power loss. Market's down 560. It does seem there's no point and no stock people are willing to buy into now to forego some sleep for.