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Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets! -- Ignore unavailable to you. Want to Upgrade?

To: Ian@SI who wrote (3632)	12/2/1997 12:49:00 PM
From: geoffrey Wren	Read Replies (1) \| Respond to of 10921

Ian, the comparison you make is valid for the largest of large caps vs. large/medium caps, which is what a DOW vs. average mutual fund is in comparison. But I believe it was O'Shaunausy (sp?) who looked at the very long term (70 years or so) and found the best stocks to hold were microcaps with low PSE ratios, which some technology stocks are at this point (e.g., SMTL). But looking backwards to learn what to do today is always problematic anyway, as the French learned to their chagrin with their Maginot line in WWII, but I like the technology micro-caps with low PSE's due to the history and the good prospects for the industry. GTW

To: Ian@SI who wrote (3632)	12/2/1997 6:59:00 PM
From: LLCF	Read Replies (1) \| Respond to of 10921

1.) I know...I don't even know why I'm picking on you...I'm board with this market! Sorry...but while we're on the subject: 2.) <Re 3 years inadequate to judge. Absolutely correct. However, it's better than 1,3 or 6 months which may be all that the new funds have. The Motley Fool hasn't been around for a decade or so.> I guess your right but statistically speaking, talking "months" is absolutely worthless...so your assertion doesnt mean much. 3.< Methodology / Costs not factored in: That description applies equally to funds. None of them include any individual's acquisition costs, tax consequences, etc. > It doesnt necessarily apply equally to funds...are you saying that the Motley Fool takes execution costs into account? I doubt it. Funds take all these internal costs into account. While they've only existed for 3-4 years, the approach has been backtested to 1961 and verified.> Did you know AIMR doesnt allow backtesting to be used for perspective returns because of the potential abuses of just "mining" data to find something that works? DAK