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Microcap & Penny Stocks : DGIV-A-HOLICS...FAMILY CHIT CHAT ONLY!! -- Ignore unavailable to you. Want to Upgrade?

To: stockman_scott who wrote (25474)	9/10/1998 7:47:00 PM
From: RocketMan	Read Replies (2) \| Respond to of 50264

Well, I think Peter Lynch would be on our side, since we have "discovered" Digticom: Lynch: Still Bullish After All These Years By James K. Glassman Thursday, September 10, 1998 Lynch's flame continues to glow even though he retired as manager of the Fidelity Magellan Fund in May 1990, after 13 years of brilliant stock-picking. During his run, Magellan's average annual return was a stunning 29.2 percent, compared with 15.8 percent for the Standard & Poor's 500-stock index. The vast majority of fund managers can't beat the S&P, and edging it out by one or two points is a major accomplishment. Lynch's record, it is safe to say, will never be eclipsed. He is no Roger Maris. I caught up with Lynch on a day when market meltdown was the operative metaphor, but as usual, he was bullish. He was especially high on small-company stocks, which after being ignored in the rallies of the past two years, had just fallen 25 percent. Lynch is the man who discovered Dunkin' Donuts, Pier 1 Imports, General Host, La Quinta Motor Inns and Taco Bell; who bought S&Ls cheap when no one wanted them; who made 12 times his money in Fannie Mae and who, despite taking lots of risks, never suffered a losing year -- not even in the crash of 1987. Lynch is also the greatest of investing populists, arguing in his first book, "One Up on Wall Street," that individual investors, if they keep their eyes open to great new products (like L'Eggs pantyhose), actually have an edge on Wall Street money managers. ... The campaign stresses a simple and important concept: "Know what you own and know why you own it." You cannot, for example, know when to sell a stock unless you know why you bought it, but Fidelity found in a survey that only 45 percent of investors could list their investments. ... But Lynch was optimistic. He was not the least interested in: a) what was happening in the world economy, and b) what the market was doing. "It is the same thing whether stocks are going down 20 percent or up 20 percent," he told me. He was interested, as usual, in owning great companies at good prices -- and in figuring out ways to make Americans more sensible investors. He wouldn't lay any specific stock tips on me (sorry), but he did say he was attracted by the imbalance between small-caps and large-caps. For example, over the past three years, the Russell 2000 index, which tracks small stocks, has returned a total of only 15 percent while the Standard & Poor's 500 Index, which tracks large-caps, has returned 80 percent. "I would not be buying index [i.e., S&P] funds in that scenario," he said. "I would be buying small-cap stocks." Nor does Lynch fear emerging markets. Based on your own needs and tolerance for risk, you should compose a portfolio of mutual funds (remember, that's his business), with categories such as small-cap funds, balanced (stock and bond) funds and emerging-markets funds. "Then," he said, "if one category under-performs, I would add to it" -- especially if that category is "way out of line."