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To: Kirk © who wrote (2274)	12/2/1997 6:16:00 PM
From: sea_biscuit	Respond to of 42834

A woman in another thread said KO is worth 50 x earnings for the simple reason is that is what it takes to get someone else to sell a share to you. I guess she will eventually have to justify that KO is worth 16 times earnings for the simple reason that that is what it takes to get someone else to buy that stock from her! Btw, I have taken a bet with one of my friends that over the next 10 years, i.e. 1998-2007, MSFT will underperform the overall market as measured by the S&P 500. If I lose the bet, I will have to buy him a share of Microsoft and if he loses, he will buy me a share of SPDR (SPY) :-)

To: Kirk © who wrote (2274)	12/3/1997 11:50:00 AM
From: Trebor	Read Replies (4) \| Respond to of 42834

>A woman in another thread said KO is worth 50 x earnings for the simple reason is that is what it takes to get someone else to sell a share to you.< I think the woman has an excellent point. There are some stocks that many people and fund managers simply want to own, regardless of the valuations. Call it the hype factor, publicity factor, glamour factor whatever, I don't know how to put a "valuation" on it but it's real and to overlook it is to overlook one of the best investment opportunities. KO, MSFT and Intel are just 3 examples. I've done well on each of these. When I feel they have really gotten ahead of themselves I sell covered calls against them -- often an excellent strategy, sometimes not. But whenever I've sold the stocks themselves, I've regretted it within a matter of weeks or months.