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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Skeeter Bug who wrote (34859)	10/30/1998 9:18:00 AM
From: accountclosed	Read Replies (1) \| Respond to of 132070

I knew if I worked at it, I could twist a conversation around to something I wanted to talk about on this thread <G>. It is a topic that I have discussed with MB in the "email discussions". That is that valuation is utterly critical in markets. I think the discussions of value on this thread are right on. But the science of valuation has its limits and in the end, using experience and judgment come in. In everyday life, we run into knowing the absolute value of something, but then sometimes suspend the rules. You gave a candy bar analogy. All of us have probably been in a situation where we are confronted with something like this. We know that a candy bar is "worth" 25 cents if we go to Wal-Mart. But were at a ball game, or a movie and suddenly the candy bar is 1.50. Then we are faced with a dilemma. Yes, in an economic theory sense there are supply/demand considerations and such is a special case. But in common sense terms, in such a situation we have to make a judgment. What is it worth to us in this situation? I think a lot of SI is very dogmatic in terms of this pos is worth this or that. Mr. Pink gives out triple turds with flies. Paul Engel comes over here occasionally and screams that Intel is worth this or that. One thing I think that is good about this thread is that valuation is key, but intelligence still applies. MB speaks sometimes in dogmatic terms. Yesterday he was going to throw up if he had to buy mu. But his recognition of Christmas touting season acknowledges that he is going to use his brain beyond just a mathematical valuation model. I think that kind of thinking is very valuable. Here's the model. Here's what we think of (as an example) Dell. But we're going to wait. The other market participants are going to act this way due to the Christmas hype season.