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

To: Dr. David Gleitman who wrote (66321)	9/20/1998 5:58:00 PM
From: OLDTRADER	Read Replies (1) \| Respond to of 176387

Why do you keep signing your name "Dr"-no one else does ,as know one really cares what you do--Im stockbroker Bill-!!-with a ton of Dell and 41 years experience -but who cares!!!

To: Dr. David Gleitman who wrote (66321)	9/20/1998 7:52:00 PM
From: jhg_in_kc	Read Replies (1) \| Respond to of 176387

Rules.for.Beating.the.S+P.Performance--Year in and Year Out. ^1. Do not over diversify. Quite a few years have demonstrated that this approach beats the S+P, whereas most mutual funds do not. Its not that the mutual funds are run by dummies--its that they are forced to over diversify. I have no more than 20 stocks, and the top 6 frequently have a weighting in excess of 80%. ^2. [this is a Warren Buffett special] Select companies whose brand name is in your considered judgement likely to be and remain powerful--remain as in 25 years from now. Some examples of durable brand names with strong clout (buy only the companies with a yes in the middle column): ^Name ^Durable Brand Name ^Owned by BRK Coca Cola ^Yes ^Yes Microsoft ^Yes ^No Oracle Corp ^No ^No Intel Corp (chips) ^Yes ^No Texas Instruments ^No ^No Micron Tech (chips) ^No ^No Compaq Computer ^May be ^No Dell Computer ^Yes ^No Apple Computer ^Yes ^No Gillette ^Yes ^Yes American Express ^Yes ^Yes Ford ^Yes ^No WalMart-Low Prices Always ^Yes ^Yes Home Depot ^Yes ^No Gap Inc. (clothing) ^Yes ^Yes McDonalds Restaurant ^Yes ^Yes Burger King ^No ^No Nike (sneakers) ^Yes ^No L A Gear (sneakers) ^No ^No Kodak ^Yes ^No Pfizer (Zoloft, Viagra)^Yes ^No Warner Lambert (Lipotor)^Yes ^No American Home Products ^No ^No Johnson&Johnson (band aid) ^Yes ^No Merck ^No ^No Eli Lilly (Prozac) ^Yes ^No Philip Morris-Marlborough ^Yes ^No RJR ^No ^No Lucent Technology ??? ^No Cisco Systems ^Yes ^No 3 Com Corp ^No ^No AMR Corp ^Yes ^No U S Airways ^Yes ^Yes Boeing ^Yes ^No Daimler/Chrysler/AirBus ^Yes ^No United Tech (Pratt+W) ^No ^No Disney(incl ABC,ESPN) ^Yes ^Yes Time Warner (CNN) ^Yes ^No 3. Invest in the Number 1 company in any market or market niche. Cocal Cola-Yes. Pepsi Cola-No. Microsoft-Yes; Oracle Corp-No; IBM-Maybe (?). Dell-Yes; Gateway-No; Compaq (??). Applied Materials-Yes; KLA-Tencor-No; Lam Research-No; Novellus Systems-No. Intel-Yes; Texas Instruments-No;Micron-No;Motorola-No. Eli Lilly-Yes; Merck-No; Am Home Products-No. Pfizer-Yes; Warner Lambert-Yes; Schering Plough-May be(?); Glaxo-Wellcome-Maybe(?). Disney-Yes (theme parks, cable tv, network tv, VHS tapes; no-Theatrical motion pictures. Cisco Systems-Yes; 3 Com Corp-No; Bay Network-No; Cabletron system No; Lucent - Yes. 4. Limit exposure to both small caps and even large companies with no "seasoning", with the exception of a few companies pushing a new technology or something else that creates a unique opportunity. In 1986, the year Microsoft went public, many an investment manager decided not to buy but wait for it to "mature." There was never a better stock to buy + hold--so make room for the exception. [on this basis, I like the small Canadian company-Ballard Power--with a patented know-how in fuel cell technolgy for electric power from gas fuels with no combustion or noxious emissions--symbol is BLDPF; touted as engine for autos(Daimler,Ford),but the real market may be electric power stations, especially in countries like China, also Canada itself, definitely Alaska]. On the other hand, small caps stocks, particularly companies like U S Robotics, Iomega, are very dangerous for overall portfolio success. If you bought and held Iomega, you regret it; U S Robotics was saved only by 3 Com acquiring it. In this category go most of the internet craze, particularly Amazon.Com. I got out of two of these small cap "rockets"--CML Group and Bombay--just before they tanked. I suspect (can not prove) that Mr. Buffett would agree with my approach, even though he has not to date invested in either High Tech or Drug stocks. i came across this post in the buffetology thread. I am pleased to see Dell as the kind of stock buffett devotees could buy even though berkshire does not own it at this time jhg