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

To: James Clarke who wrote (3452)	3/5/1998 3:48:00 PM
From: Michael Burry	Read Replies (1) \| Respond to of 78576

Noticed Nike's bounced today as institutions run for liquid value - bad on me, but my portfolios are up over 1% today so I'm not throwing a tantrum, as emotional youngsters like me are prone to do. I have no gray hairs, but I've noticed something - I monitor about 80 stocks on Yahoo that I like fundamentally for one reason or another. Every once in a while one will just start falling or will really light up the screen with a large daily percentage loss, like INTC is doing. That will cause me to look into it. And sometimes, one of these stocks will just look like a can't lose situation. And sometimes, the stock will remain there long enough for me to do my due diligence. And sometimes, when I like a stock, I'll actually end up buying it. So missing out on a lot is part of my strategy. YUM, SJP, BMC, MSA, PHSYA, ELAMF, DSWLF, and TBR were all values found by being patient and waiting for my price. And they've proven solid so far - more my strategy than the stocks themselves, I presume. HYDEA is the only one that I didn't have to wait on since it'd been flatlining so long. Like I said, I look on myself as young and in an experimenting phase. I've only been investing now 6 years, and I feel like it's just in the last two years that I'm seeing a light. I wasted a lot of money on so-called growth/momo investing - in 1992, my total return was 14% on over 100 trades with >1000% turnover, cut to 5% by commissions and then cut again by taxes. And in 1996, I was there sifting through the broken remains of tech during April-July 96, but bought and sold too early on just about every stock I had. I moved to value investing just under two years ago, if that - my summer 96 foray into tech was a first experience. Recently I incorporated a 10-stock goal concentration for my portfolio, which I like a lot. Can I be overdoing the patience-on-the-buy thing - another newish concept for me? We'll see. But I took the 10-stock goal from statistical studies re: risk, and I'm taking the waitnsee approach from Buffett. I'm not presuming to re-invent investing. I am reading every reasonable book on investing I can find. I've just finished Mike Murphy's tech stocks book - my biggest frustration has been an inability to value tech stocks, so I'm trying to correct that. Based on his methods, techs are way overvalued as a group, but there may be individual values. I don't agree with everything he says, but overall he is a long-term investor looking for values. I liked the book. Good Investing, Mike

To: James Clarke who wrote (3452)	3/5/1998 4:00:00 PM
From: Michael Burry	Read Replies (1) \| Respond to of 78576

James, Let me ask something - why weren't you buying Nike at 36-38 or INTC at 66-68? It appears you are buying at 42-45 on Nike and 75 on INTC, althought both Nike and INTC languished for extended periods of times significantly below these levels. I'm sure you were aware of them at the lower levels (as was the world). INTC's fall is spectacular today, but does that help you make your decision? Or do you see a fundamental change that you like relative to when the stocks were lower? I monitored both stocks from higher to lower and now back to higher again, and they never hit my buy point, so I'm just curious. Good Investing, Mike