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Strategies & Market Trends : Let's Make REAL MONEY (Big, long-term cap. gains) -- Ignore unavailable to you. Want to Upgrade?

To: Don S.Boller who wrote (33)	12/16/1997 9:47:00 PM
From: Roger A. Babb	Read Replies (2) \| Respond to of 135

Don, the really large gains are made by investing in a company before it is "discovered" by the analysts and momentum players. I won't go into a long discussion of why I think BROC has a good chance of achieving a high growth rate over the next few years. Let's just say that I am very impressed with their staff and management and they will launch a new SFA product in 1998 that will define the next generation of SFA software. New management took over the company in early 1997 and are launching a new "startup" on the bones of the old company, a visit to the company has the feel and attitude of a high tech startup. I didn't mean this post to be a plug for BROC (see the BROC thread for that), but am using it as an example of the kind of long term buy & hold investment that yields big gains. These big gains will come from companies like this at the beginning of something new. Companies like MSFT will continue to do well, but will never again produce those huge wealth creating gains. And the story stocks are usually a flash in the pan that are better shorted. I am also an "old timer" investor on the better side of 50 with an engineering background. I look for solid financials, conservative book keeping, good R&D, and above all a management that I trust. I tend to take a few very large long positions, take a proactive role in company affairs, visit often with management, stick my nose into the technical offices, watch for the company to grow by my timetable, and hold those positions for many years so long as my goals are met. For my large positions, I make it a habit to spend one day per quarter in the company offices and afterwards to re-evaluate my position. Sounds like you are not very impressed with BROC. Just follow its progress through 1998 and this time next year you can either congratulate me or say "I told you so!"