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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 (166)	4/14/1998 12:19:00 AM
From: Berney	Respond to of 1722

Wayne, as you know, I do not share the concept of a "one bullet" strategy or a concentrated portfolio. I have consistently proven (alas to myself) that I have no problem picking a group on stocks that will out-perform the index. If we avoid those stocks that do not exhibit the characteristics of the bottom dwellers, we will, by default, beat the Index. It really is that simple. Take the top 5 stocks on my ROE to PE list and I'll wager a bet they will beat the Index. The Margin of Safety is built in. Where we agree is that much of this market is garbage. Where we disagree is that I believe that you have more to lose over the next ten years by not being in quality stocks. I don't buy the argument that because the "Market" is over-valued, we should avoid the Market. There is still good value available! If I had to choose two (which I never would), I would choose CAT and IBM. The Margin of Safety is built in! Berney

To: Freedom Fighter who wrote (166)	4/14/1998 12:28:00 AM
From: Berney	Read Replies (2) \| Respond to of 1722

Wayne, That said, I believe there are times to be aggressive and there are times to be conservative. My understanding is that BG believed that one should allocate their investments between Equity and Fixed Income from 25% to 75% depending on their personal view of market direction "over the short-term". I believe 50/50 mix to be prudent at this time! An ebbing tide lowers all vessels. A rising tide raises the trash in the sea. I see it not so much a problem that the vessels have risen, but that the trash has risen along with it Berney