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

To: Lazarus who wrote (44601)	9/27/2011 1:14:32 PM
From: MCsweet	Respond to of 78702

Lazarus, Earning on large caps are usually not as volatile as earnings on microcap stocks. And prices are not as volatile either, and you aren't stock in a roach motel if things go south. Also, if you can buy at a stock at or near book or at a discount, then the book value gives you some margin of safety. There is no such book value margin of safety in Armanino. Ford and other cyclical stocks have volatile earnings. I usually don't invest in such stocks either. I may consider them if I can get a good margin of safety on book value with ok prospects for long-term earnings, but I won't back up the truck.. I have made a lot of money in microcap stocks over the years, but with several painful stingers as well. There are usually enough opportunities that I think it is a mistake to stretch. That being said, if I like the fundamentals enough I may take a starter position, even if I don't have a big margin of safety. Thank you, MC