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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (4768)	8/22/1998 7:39:00 PM
From: Joseph G.	Read Replies (1) \| Respond to of 78611

Congratulations on your 1,000 th post!

To: Paul Senior who wrote (4768)	8/22/1998 8:58:00 PM
From: jeffbas	Read Replies (1) \| Respond to of 78611

Paul, I disagree with you and agree with Mike. I believe the goal of buying individual stocks is precisely to achieve superior RELATIVE returns from individual stock selection over the practical alternative, index funds (index funds over mutual funds because they beat most mutual funds, primarily because of lower expenses). I for one would be quite happy to lose 10% if index funds were losing 25%. The cost of individual stock investing is the significant amount of time required and often a degree of stress that may have long term effects on one's health, both mental and physical. If there is not a material return in terms of superior performance or personal enjoyment as from a hobby then I think it is a bad idea.

To: Paul Senior who wrote (4768)	8/22/1998 11:06:00 PM
From: Michael Burry	Read Replies (2) \| Respond to of 78611

You don't understand? It seems so simple I thought there must be a disconnect somewhere. Then I reread your post - "For me, I'd rather pick my own stocks to reach my goals." If this is part of what makes one's day worthwhile, then picking stocks in the face of underperforming the market may make sense - there are then nontangible benefits to being an individual stock investor. I guess my personal choice would be to do something else with my time and make at least market returns - if I knew that all my individual stock picking would not beat the market. So let me restate: Beating market is the only goal for individual stock pickers . (this is what I meant in the first place) Failing that, the goal is matching the market over the long term with next to zero effort. Mike