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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (3303)	2/24/1998 1:01:00 PM
From: porcupine --''''>	Read Replies (1) \| Respond to of 78490

> I ain't said nuttin about book value. "Bargain" stocks by Graham > are defined on pg. 91 I believe of 1974 ed. of Intelligent > Investor. In fact, it's page 82. > Definition of investment operation is the KEY to the > whole process. Dontcha know.[?] Yes, I do. Here's another passage from GADR [the Book]: ========================================= In The Beginning... I first read "The Intelligent Investor" in 1980 or there about. At the time, I was not in the Market. The DJIA had not yet returned to the high of 1051 it had achieved in 1973, in spite of much ensuing inflation.....Real estate, not the stock market, was the place to be. The second time I read mention of "The Intelligent Investor" in "Barron's", I decided to obtain a copy. It was waiting for me on a shelf at the public library. I read the Preface by Warren Buffett. At that time, I was only vaguely aware of his existence. The general media had not yet bestowed cult status on Wall Street and its leading figures. Buffett had first read "The Intelligent Investor" in 1950 at the age of 19, at which point he was already something of an investing prodigy. In the Preface of the last edition of "The Intelligent Investor", he wrote, "I thought then that it was by far the best book about investing ever written. I still think it is." I reached the same conclusion before finishing the first page of Chapter 1. Graham, quoting his own words from the 1934 edition of "Security Analysis", writes: "'An investment operation is one which, upon thorough analysis, promises safety of principal and an adequate return. Operations not meeting these requirements are speculative.'" It is difficult to exaggerate the effect those words had on this reader. Finally, I felt, I was reading something on investing written by someone who had actually thought through the subject to its core issue: What is investing? What is not? By comparison, other authors seemed to have had merely fortuitous insights, supported by back-testing carefully selected to confirm their ideas. By the time I finished reading "The Intelligent Investor" for the first time, I felt it was the only book on "investing" I had ever read. Much subsequent study has left this view largely undisturbed. ======================================= > It's (sigh) [sic] also defined. I let your whiny and rude tone pass without comment the first time, accepting, at face value, your supercilious "el Nino" excuse for your jejune attitude. But this second post, rather than adopting the appropriately chagrined tone of someone with a mature persona, instead continues in the vein of the typically petulant Spoiled American Prince. > OF COURSE, > Graham changed his analytical methods to fit what works - BUT not > the definition which guided him. So tell us then, what Graham-type > value stocks - other than Pargain - are you buying or holding? > Your methods may indeed be very successful. And they may be based > on Graham. But from what I can see, they are not true to Graham. > IMO. This is where my hypothesis is confirmed. As is in your first post (which bent over backwards to make enemies where none had formerly existed -- a luxury that even royalty can't really afford, and that therefore, only a parvenu would affect), you express interest in the stock picks themselves. It is obvious you have been conditioned to expect and anticipate that your tantrums would be rewarded with further (uncompensated) guidance. But, alas, when the prince kisses the porcupine, the tale does not necessarily end happily ever after. regards, porcupine --'''':>