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To: freeus who wrote (37100)	4/8/1998 1:40:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 176387

Good morning freeus. I'm glad I'm beginning to get your attention on the virtues of buy and hold! Let me give you a few additional arguments in favor of that approach. Trading really depends on either timing the market or a belief that your valuation methodology is superior to the market's. The former case relies on TA -- a system for which there is no statistical evidence. The latter relies on methodologies that have no sound basis in theory -- i.e. PEG ratios. I think that the substandard performance of the fund managers speaks volumes as to the futility of trying to outsmart the market. I don't know this for a fact, but one ad on the tube claims that 90% of the funds underperformed the S&P (or perhaps it was the Dow -- I can't remember which). So, the buy and hold philosophy says that if you can't outsmart the market you might as well profit from it on the market's terms. The one caveat I have to this approach is that a fundamental shift in the long-term prospects requires me re-evaluate my position. That caused me to bail out of CKR, OXHP and SEG, although I continue to hold ASND. I have several holdings in my portfolio from the 1960's. Regards, Paul