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Strategies & Market Trends : Graham and Doddsville -- Value Investing In The New Era -- Ignore unavailable to you. Want to Upgrade?

To: Freedom Fighter who wrote (133)	4/2/1998 10:35:00 PM
From: Investor2	Respond to of 1722

Re: "By the way, do you have any good ideas?" I've tried quite a number of investment strategies over the years (trading, options, buy and hold, mutual funds, etc.). The individual stock investment approach that works best for me is to dollar cost average into high quality growth stocks over long periods of time. I have a list of growth stocks that I've been dollar cost averaging into for years. When the price of one of my stocks gets to a cyclical low, I "double up" on my dollar cost averaging contribution. Conversely, when the stock approaches its high historical valuation, I reduce or skip my dollar cost averaging contribution. In early 1996, many of my stocks were trading at valuation levels below their historical norms. At that time, I increased my investment contributions significantly. In fact, I increased my contribution so much that my asset allocation became skewed far to the equity side of what I perceive to be ideal. In May of 1997, I threw caution to the wind and even went heavier into equities. In line with the market, my stock portfolio has continued to grow over the past 10 months. Today, I am very overweighted in equities. The prices of nearly all of my stocks are much higher than their historical valuations. I've stopped all of my dollar cost averaging contributions (due to the high valuations) and I'm hanging on to this runaway bull for dear life. How long can it last? I don't have any idea. Am I nervous about my overweight equity position? Of course. Am I ready to give up on the greatest bull market in U.S. history; the bull market that climbs the wall of worry like none others before it; the greatest bull market that I will ever see in my lifetime? Not quite yet. I believe we will see at least one more mega bull charge. The last bull charge will skewer and trample the bears. Nearly all of the shorts will be forced to cover, incurring huge losses in the process. No one will be brave enough to sell the market short after that bull charge. Even the bears will throw in the towel and buy stocks with their life savings. Bullishness will run rampant, more so even then now. Hopefully, I'll be able to motivate myself to reduce my equity exposure significantly by that time. Best wishes, I2

To: Freedom Fighter who wrote (133)	4/3/1998 9:38:00 PM
From: Shane M	Read Replies (1) \| Respond to of 1722

Wayne, The very best buy that I see on the market right now is Deswell Industries (DSWLF). They have an SI thread, and the company just went on sale today, falling about a point due to what many on the thread believe is some liquidation by insiders to come up with cash to excercise options. It's currently selling at 19 5/8, expected earnings on the thread are around $3.00 per share. Sales growth is fantastic. The major concern is that it's a Hong Kong company and perhaps China could pull the rug out from under... FWIW, around 20% of my money is in DSWLF right now. Shane