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Technology Stocks : LSI Corporation -- Ignore unavailable to you. Want to Upgrade?

To: sea_biscuit who wrote (15548)	10/8/1998 6:37:00 PM
From: Jock Hutchinson	Read Replies (2) \| Respond to of 25814

You will be glad you only had a twenty percent weighting of your portfolio in tech stocks? You have got to be kidding Dipy. While I would agree that Addi is overweighted and poorly timed insofar as his one hundred percent investment in tech stocks is concerned, I think your belief that tech stocks are a poor long term investment relative to the rest of the market is outright ludicrous. Over the past five to ten years, the funds that have had superior performance have been tech stocks. Let's take a look at how LSI (that's totally in the toiler LSI has performed against these superior picks of yours during the past 80 months: techstocks.com Terrible LSI is right in the middle of the pack versus your you'll be glad you did picks. And since LSI has been a terrible performer, let's compare the three you have mentioned most frequently MCD (McDonalds) MO (Phillip Morris) and Pepsi (PEP), let's compare these stalwarts versus some of the NASDAQ stalwarts during the same time period: techstocks.com Now that's ugly, and remember that LSI is in the midst of the longest downturn in the semi industry since it began. How about some of the recent high flyers in technology versus Taco Bell, Pork and Beans, Kraft's Macaroni and Cheese, and Scotch Tape: techstocks.com The interesting thing about this chart is that all three of these tech darlings significantly underperformed your "you'll be glad you did " stalwarts for significant periods of time, but now they have so clearly outdistanced these dredges, that there is no way that they would ever have a chance to catch up to the superior returns of the tech stocks. Let me give you some food for thought Dipy. Take a look at this so-called stable portfolio. The strength in these so-called superior investments has been the spread of American Culture throughout the world. So you really think that Marlboro cigarettes, Kraft Macaroni and Cheese, Big Macs, Scotch tape, and Pork and Beans are not at some time easily replaced? Indeed, it would seem to me that over time, these products are much more easily replaced than the technologically superior products that companies like INTC, LSI, EMC, and MSFT represent. Won't happen. I've been in the market long enough to remember that Bethleham, and US Steel made the same sort of list that you are offering along with GM. Everybody knew 25 years ago that these great American companies would grow endlessly, and would encounter no real threat from foreign competition. Well, everybody was wrong. Yeah I know, the superstar stocks that you are promoting are food conglomerates. Dipy, I am from Chicago, and tonight my wife and I will go for a little ride down Chicago's Halstead Street. If you are current and contemporary, the trip starts on the north side a long block away from Wrigley Field, and goes south through the gay neighborhood, through yuppie areas, through Gen X areas and past the University of Illinois. But the trip ends near Chicago's Stock Yards, a ghost town, which even in the 60's hosted such food conglomerate giants as Swift, Armour, and Beatrice Foods. None of these once huge companies exists any longer, and while it may take longer for these companies to disappear, don't think for one moment that your bullet proof portfolio is any more secure over time than Addi's