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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: LemurHouse who wrote (63441)	9/3/1998 12:50:00 PM
From: David Harker	Respond to of 176388

Andrew, yes, "Common Stocks and Uncommon Profits" is a fantastic book, I'm reading it now. Phillip Fisher strongly favors a long- term, buy and hold approach, predicated on LOTS of up-front research to find REALLY HIGH QUALITY, CONSISTENTLY GROWING companies. When he describes his 15 characteristics of these super-rare, buy-and-hold-forever investments, it sounds like he is describing DELL. He wasn't, since he wrote it in 1958. (He started investing professionally in 1928, and wrote a 2nd book in 1975). His son, Ken Fisher, is a columnist in Forbes magazine. He particularly stresses that trying to sell when you think your dream stock is too high, so you can buy it back again at a lower price, is dumb. He argues that a positive outcome from holding the stock long-term is very likely to occur (due to your research) and that buying it back cheaper (after selling) is much less likely to occur, since NO ONE can predict short-term future events. In other words, the numerical probability of a stock like DELL being higher in 3-5 years is much higher than the numerical probability that you will sell DELL at a high price and then actually buy it back at a lower price, so don't do it - just hold it! He also points out the tax problems of the sell/buy-back approach. LOTS of great, classic investment wisdom in this book!