To: Reginald Middleton who wrote (30529 ) 2/20/1998 1:23:00 AM From: Chuzzlewit Read Replies (4) | Respond to
Reginald, I'll answer you in greater detail when I have time, but here is the long and the short of my view. I believe that there is no good objective method of placing a value on a growth company for a variety of reasons, and therefore, I think it's pointless to engage in that kind of activity. Instead, I prefer the MPT view that capital assets are more or less properly priced, and that the markets are basically efficient. Therefore, instead of trying to outsmart other investors, I look for stocks in companies that seem to have outstanding growth potential, and I stay with them so long as that growth story remains intact. If I am correct in my choice of stocks, I can expect appreciation that roughly correlates with the expected growth rates. My actual results for the past 12 months (excluding taxes but including transactions costs) were 53.8%.
