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Microcap & Penny Stocks : DCI Telecommunications - DCTC Today -- Ignore unavailable to you. Want to Upgrade?

To: Bruce Galpeer who wrote (3217)	3/3/1998 8:52:00 PM
From: Grupo Brad	Respond to of 19331

Bruce, Just a quickie! SO TRUE!!!!!!!!!!!!!!!!!!!!!!!!!!!!!(ggg) "Grupo"

To: Bruce Galpeer who wrote (3217)	3/3/1998 11:07:00 PM
From: King Louie	Read Replies (2) \| Respond to of 19331

Bruce, Your scenario is a good example of why the buy and hold strategy works so well in general. While I was away, I spent a week in St. Thomas at an investment seminar. One of the strategies discussed and analyzed was the Warren Buffet style of buy and hold. Of the top twenty most wealthy Americans, only Buffet got there by investing in the markets alone. Look at these two investor results: Investor #1:Invests $1 in stock A for 1 year and it doubles in one years time and is sold. 20% tax is taken out on the profits and the total left is reinvested the next year with the same results. This is done for 20 years in a row and $1 becomes $70,823--Not Bad! Investor #2:Invests $1 in stock B and it doubles every year for 20 years in a row and then is sold. 20% tax is taken out once after the 20th year. RESULT:$1 becomes $838,860. This is nearly 12x BETTER--BIG DIFFERENCE! Investor #2 only has to guess right twice, when he buys and when he sells. Investor #1 has to guess right 40 consecutive times with far less to show for it. This is how Buffet made his billions and why the short termers will never see theirs. KL