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Strategies & Market Trends : Shorting stocks: Broken stocks - Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Sir Auric Goldfinger who wrote (1649)	8/14/1998 5:51:00 PM
From: Sword	Respond to of 2506

Ben, Auric: "Interesting" indeed. I have concluded that there are two low risk approaches to investment of funds in the equity markets. The first is to buy high quality stocks that have excellent balance sheets and cash flow, year after year of profitabilty and management that shines. Buy these and hold, period. Then in parallel with this, one can sell short stock in companies that are in a death spiral with little, if any opportunity for saving themselves. Short these and hold forever, period. Day after day, they are marked to market in the account, as the cash becomes available, short more garbage and go long more diamonds. Market conditions, bull or bear, will have little influence on the growth of your portfolio. It will inevitably rise in the tide that comes with wise investments. And in the end, you will live longer because you will sleep in peace night after night. Here's my cup of gratitude to all on this thread that have contributed to my prosperity on the short side: Pluvia, Auric, Mr. Pink, and most of all, John G the gentleman of the intelligent short seller community. -Sword