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To: Jock Hutchinson who wrote (9451)	2/4/1998 4:16:00 PM
From: shane forbes	Read Replies (2) \| Respond to of 25814

Jock: And about Buffet we must remember that he did pull out in late 1969 or thereabouts and he did make that big shift a few months ago with bonds and today or recently with silver. He's making portfolio shifts or so it seems. Of course I don't blame him. The holdings are so huge. Further his long term holdings were never cyclical and never tech stocks. They were KO, G, Washington Post, Geico and others that tended to have long term "monopolistic" strength and were not subject to the whimsies of technological advances and product transitions. And that's a good observation on Soros. I think he is hedge-fund defined and he's done quite well. Even Lynch who did very well used to make sector bets. Often. Many ways to skin a cat!

To: Jock Hutchinson who wrote (9451)	2/4/1998 8:02:00 PM
From: DavidG	Read Replies (2) \| Respond to of 25814

Jock, a loss of fifty percent is mathematically twice as harmful as a gain of fifty percent is beneficial. You need a gain of one hundred percent to overcome a loss of fifty percent. I guess this is new math and my math goes back many more years than I want to admit. But, do I understand you to say that ...if I invest $100 in LSI and if I lost 50% or $50 it will be twice as harmful as a gain of 50% which is still $50...and... will be twice as harmful. Didn't I lose $50 either way. First way.... I started with $100 and ended with $50______1/3 2nd way Second way.. I started with $100 and ended with 150______3X First way ??Where is the TWICE as harmful? Maybe (2nd way)-(first way)=100... which is 2X(first way)..or.. $50? Did I cover all permutations? If you lose $50 you have to make $50 to break even...so if a stock goes from $100 to $50... it should be the same risk as going from $50 to $100...so your example of twice as harmful or 1/2 as harmful, I do not believe holds water. Not much different than flipping a coin...which sometimes works better in picking a stock...its still 50-50 on each flip<g> DavidG