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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host -- Ignore unavailable to you. Want to Upgrade?

To: Greg Luke who wrote (3112)	1/27/1998 3:13:00 AM
From: Alan Bell	Read Replies (1) \| Respond to of 42834

On past shows, Bob has indicated that he considers the semiconductor industry to be different than the software industry. Why would Bob want to trade a stock like msft for which his cost basis is essentially zero. He must have so much capital gain built up in it that it would have to look pretty iffy to sell. This weekend he said that several years ago when msft hit 40, he changed from a buy to hold. Even this factor of three increase is a large capital gain. Why would it be incompatible for some stocks to be both a good trading stock and a good long term investment. Surely one wants to pick a stock with good fundementals to trade. (One also wants volitility.) He has taken no position on whether he now considers it to be a good long term buy. No position is not the same as saying that it is not going to do ok long-term. Bob's 4% recommended limit is for an individual stock and not for the complete stock portfolio. -- Alan PS. Do you think Bob might make some extra INTC trades just to keep this discussion group lively. <g> No, I guess not.

To: Greg Luke who wrote (3112)	1/28/1998 12:31:00 AM
From: Hank Stamper	Read Replies (2) \| Respond to of 42834

"Come to think about it, I guess it must be the 4% of his portfolio he uses to invest in stocks. And he did mention that you have to know everything about a stock to trade it. Maybe that explains why it he considers it his trading stock. But doesn't explain why he doesn't consider it an investment for others." Greg, Brinker has consistantly said that one should not put more than 4% of his/her portfolio into _one_ individual stock selection. He has also explained over an over again why he does not consider INTC an 'investment' stock (i.e. not a long term hold stock). He has said: because of the movement to sub $1000 computers, sales in the higher priced/higher profit CPUs will account for an increasingly smaller percentage of INTC's profits in the present and coming term. I am not a great stock market wizard but it sure sounds like a clear and simple explaination to me. David Todtman