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Technology Stocks : Rambus (RMBS) - Eagle or Penguin -- Ignore unavailable to you. Want to Upgrade?

To: Don Green who wrote (6892)	9/2/1998 5:47:00 PM
From: James H	Read Replies (1) \| Respond to of 93625

Don, was cruising through the RMBS thread and came upon your observations. "But I have since learned that LONG TERM INVESTORS here don't understand that Short Profits can surpass long term gains." I've been a "buy an hold" investor for the last 12 years or so. Now I realize these last dozen years have been abnormal from a market standpoint. I would have to argue the fact that short profits can surpass long term gains. They CAN for short periods of time, but dividends (if paid), compounding, stock splits and special dividends account for significant gains to long-term holders of stocks. Additionally, taxes don't seem to be factored into the mix. I hold PG with my initial shares at less than $10 per share, I have yet to pay taxes on these appreciated shares, I will someday, but not today. Several things turn me off from the trader mentality. Having to track the market every hour of every day that I'm actively trading. I have to keep finding winning positions, so as I move from a winner, I don't put it into a loser, because I still owe taxes from that winning position. I have to earn enough to compensate me for my time, overcome short-term capital gains and have significantly more winners than losers. As a long-term investor, I'm able to check the market at my leisure, enjoy the retirement I deserve and reap the benefits of long-term investing (dividends, which seem to have lost the luster - made a difference when you are getting those checks like clockwork each quarter) as well as capital appreciation. I don't want to knock traders, I've done it for short periods of time and made money at it. I hated it come tax time, but it does have a certain allure. But over the years, I've known both traders and investors and the investors have done much better. I include my father in the investor camp, he had the foresight to load up on long-term CD's in the 70's yielding mid to upper teens. As these rolled over he moved into tax deferred annuities under the umbrella of a family trust. Upon his death in 1989, it was time to move to provide income for my aging mother, we moved into a conservative mix of bond and income funds now producing a substantial living income for her and gives me great peace of mind. I know others have done as well, but I can only say that I have seen the results of long-term investing and it works. Thanks for letting me bend your ear. I just wanted to present my case for having a long-term view. Take care and good luck. James S. Hereford