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

To: yard_man who wrote (3612)	3/24/1998 2:41:00 PM
From: jeffbas	Read Replies (1) \| Respond to of 78568

That is an observation worth discussing on this thread. Will the market ever get around to what we perceive as value stocks? If it will not, then they will not go up now, and only go down less in the next bear market. Not too attractive a proposition?

To: yard_man who wrote (3612)	3/24/1998 3:25:00 PM
From: Michael Burry	Read Replies (2) \| Respond to of 78568

Wow, this is getting really interesting. People (read: more than one) are taking time out of their day to come the value investing thread and tell us how irrelevant value investing is. At about the same time, friends and acquaintances are losing all patience with my talk about value but perk up when someone says "this one will double by December." These are the same ones that say, "I'm making 40%" and expect it to continue. Recently two people approached me about helping them do commodities for even bigger gains - 30-40% in stocks isn't enough. One of them thinks commodities aren't enough, he wants options on S&P futures. As I run a value investing web site, I can also tell you that I approach 200 hits/day when the market shakes out like in October and January, but am down to 60-70 hits/day now. People don't need ideas - they know to just pile into the stocks everyone talks about, a strategy that has worked well the last 15 years. I tell my editor that Dell at 140 is an albatross that has just been shot, and he says no way, the money flow is just too strong. That money flow brought it to around 122 pre-split within a few days. Certainly is interesting...last year I was bearish on valuation, but never before have I had so many people slap me in the face with their impatience with value investing. Mike

To: yard_man who wrote (3612)	3/24/1998 11:41:00 PM
From: Paul Senior	Respond to of 78568

Barry Hall: re: Just Buy. And being facetious. But you ARE correct. Just buy has been the correct policy for people who want to make the most money. (to maximize returns unadjusted for risk). Some studies apparently show value investing beats growth investing (risk adjusted, maybe absolutely too??). But it sure doesn't feel like it to me now. It does seem so much easier and comforting and profitable buying Microsoft or Dell etc. And I don't mean it sarcastically. Jealous- maybe -g-; I never bot either co. :>( Just that maybe those with the most guts make the most money in a bull market. And it's pretty hard to argue with success or the expectation of continued (40%/yr??) success. But it is a long term game for some, and in that sense, value investing has a place (I hope -g-).