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

To: Michael Burry who wrote (4779)	8/22/1998 11:31:00 PM
From: Paul Senior	Read Replies (2) \| Respond to of 78613

Mike, Then what do you think it might take for someone to realize he/she cannot beat the market? That is, from my perspective almost nobody can beat the market other than periodically or randomly, and given, from what I can see, 'regarding ...individual stock picking' nobody around here for sure is beating the market. At SOME point, if this performance continues and one is not meeting one's goals, then either the methods or goals would change I assume. Or perhaps these goals are lofty aspirations which we diligently pursue knowing how unreachable they really are? Or perhaps I am totally incorrect, that there are indeed lots of individuals out there using value investing, Buffett investing, who can show that they beat the market? Mike, looks like we just disagree on this one -g- Paul.

To: Michael Burry who wrote (4779)	8/28/1998 11:34:00 PM
From: Allen Furlan	Respond to of 78613

Ah Ha. " Beating the market is the only goal for individual stock pickers." Maybe being a stock picker is not the whole story for investors who want to beat the market and preserve capital. Four strategies which I have successfully used are: 1 Placing option writes against the stock held long. Long term option ratio writes have been very good to me. 2. Taking a position in stocks for which a cash buyout offer has been made. 3. Establishing a position in a desireable stock thru a put write. 4. Selling out of the money naked calls on dogs. Mix some of these strategies along with value stock and bond purchases and you will likely lose much less in times such as we are now experiencing while generating profits to offset "Stock Picking" losses. The name of the game is to beat the market but not necessarily just with stock picking. I would invite the astute members of this thread to suggest some other strategies which could be used to augment the results which occur from stock picking alone.