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Technology Stocks : SAP A.G. -- Ignore unavailable to you. Want to Upgrade?

To: Scott Brooks who wrote (2267)	8/12/1998 11:06:00 AM
From: growthvalue	Read Replies (1) \| Respond to of 3424

"Would you be happy if Peoplesoft outperformed the S&P but underperformed SAP?" Yes I would - of course I'd be even happier if PSFT ALSO outperformed SAP (which I think it will), but hey, you can't win 'em all. On the other hand, I would be extremely UNhappy if PSFT beat SAP and underpeformed the S&P 500 - this is all over the long term, of course. How can you say that long-term comparisons to the S&P 500 aren't useful? The "what-if" you refer to is what economists call "opportunity cost." The whole purpose of buying individual stocks is to outperform the index!!! Otherwise, you'd be better off putting your money in Vanguard 500. I'm not saying a comparison to peers isn't useful, just that outperformance of peers isn't as important as outperformance of the broad market in the long run - beating peers is small consolation if your peer group can't beat the market. Unless you're hedging. But hey, it's your money.