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Pastimes : John Dessauer's Investors World -- Ignore unavailable to you. Want to Upgrade?

To: Ralph C. Cinque who wrote (1773)	10/26/1998 9:53:00 AM
From: DWB	Read Replies (1) \| Respond to of 2346

I think that JD has a tendency to be too early in a lot of the stocks that he recommends. Here's an example... JD recommends a stock that's selling at $20. I do my own research and come to the conclusion that it's a good bargain at that price and buy 100 shares. Time passes... the next quarterly comes out, and they miss earnings by a penny. The stock drops to $15. JD still recommends it and says it's an even better buy now, what with the shortsightedness of WS. I decide he's right and buy another 100 shares at $15. Time passes, thanks to some tax loss selling, and a general market decrease among all stocks, the stock now sells for $10. JD says it's a steal, nothing has changed, and earnings are unchanged going forward.. even going so far as to say IF YOU OWN THIS STOCK.. BUY MORE!... I again reevaluate the situation and agree. Plus, this is an investment with a minimum horizon of 2-3 years, so I feel confident it will be very profitable over that timespan. I buy 200 more shares at $10. I also decide that even if the stock goes lower, I've got enough money committed to this one issue, and draw the line. I now own 400 shares, with an average prices of just less than $14. To Ralph, JD has made another huge mistake, I have lost a ton of money, and it's time to cancel my subscription...I think differently... We now move 1 year into the future... the company did indeed have earnings on line, and were just getting rolling. The momentary market fluctuations are long gone, and optimism is high. I'm still 1-2 years shy of my initial timeline, and the stock is at $30 and climbing. I've got a 120% profit overall, and can sell now, or do hold on, whatever. Ralph, meanwhile sold his around the bottom, and is now a lonely embittered money market holder who named his yorkie "JD" just so he could get a jolt kicking him around the house when the mood hit him. In value investing, patience is almost everything. That and the fortitude to admit that you'll make mistakes from time-to-time, but not to let them consume you. If you can't invest confidently, and stick with your convictions long enough to see them though, call Vanguard now... DWB P.S. Ralph, feel free to mix in a paragraph break now and then... I just block out anything that doesn't have a break more frequently than the page is long...