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

To: Michael Burry who wrote (4789)	8/23/1998 10:29:00 AM
From: Wallace Rivers	Read Replies (1) \| Respond to of 78998

We've been talking of index funds here, so I'll throw one out I just read about - Russell 2000 MITTS (NYSE - ticker RUM). Come due at a guaranteed (only if Merrill Lynch stays in business!) minimum $10 9/30/04. The terms on the due date are the aforementioned $10 PLUS $10*the percentage increase from the Russell 2000 base of 494.36. A couple of points to be aware of: Because these are considered zeroes, there may be tax consequences in taxable accounts. They are not the most liquid instrument out there. If you believe the small caps will rally, this might be a good alternative, if one is looking for an index "fund" with downside protection. Comments?

To: Michael Burry who wrote (4789)	8/23/1998 10:32:00 AM
From: Paul Senior	Read Replies (1) \| Respond to of 78998

Because the point is always to get better - learning and growing, and that cannot be accomplished by being in an index fund. Because I enjoy the hunt, the thinking about stocks/businesses, the feeling I'm a part owner, the control I tell myself I have over timing of purchase/sales/tax consequences; because it's not necessary to be in index funds to make good money. To you who say or imply that you are not in index funds because you want to beat the market: Nobody on this thread or the Buffett thread is claiming they are actually able to beat the market. So to me, it looks like the 'triumph of hope over experience'. What clue do you think would tell you guys to realize your effort/methods are not achieving these goals?