To: mozek who wrote (12551 ) 7/18/1998 8:16:00 AM From: gdichaz Respond to
Two small points. Having bought Cisco in 1990, I am happy that it has gone up over 160 times from when I bought it. This has enabled me to sell chunks since then to buy such good stuff as the Q, Tellabs, Lucent, Nortel, Loral, Globalstar, Qwest, Ciena, Texas Instruments, Citrix, Sun Micro et al even after the hits from the taxcollector. A nest egg from a price rise ain't too shabby - Buffet not withstanding. However, Buffet's idea of not buying a stock unless you are prepared to hold it for at least 10 years is an excellent discipline IMO. But the stocks that have done the best for me have always been stocks I have spotted within an emerging technology. In 1990 it was networking. Now it is telecom equip - especially wireless and fiber - IMO. I have used the Gorilla Game approach - sort of - by picking several good candidates in rapidly growing technological areas (in 1990 for example Wellfleet as well as Cisco - and then concentrated on the one doing better over time). I used this same approach in 1994 to buy Ascend as well as Stratacom (a fine stock absorbed later by Cisco) as examples. Very good results. Just mention this as an approach to investing that has worked well for me. BTW I have done best with stocks with rapidly growing earnings with prices on their way up strongly with high PEs (almost always over 40) in cutting edge technologies. A side benefit is that I have learned about emerging technologies as a necessary element of this style of investing which has itself been fun and stimulating. All obviously just my own approach, experience and therefore just IMO. BTW the Q is by far my favorite for rapid growth in earnings (and price) starting in the Sept quarter onward and upward. (Altho expect TLAB will continue to plug along consistently well). And think Loral is second only to the Q as a fine investment at this time. :-) Chaz
