Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : America On-Line: will it survive ...? -- Ignore unavailable to you. Want to Upgrade?

To: zax who wrote (11691)	11/1/1998 5:21:00 PM
From: Jorge	Read Replies (2) \| Respond to of 13594

Zax...I have to get back to my original comment of believing you are paranoid...However, I will grant you that low P/E'd stocks are already, and will continue, staging a comeback, and have been beaten down unmercifully...This is not anything new in the history of the Market...This is a very predictable cycle. To keep myself abreast of the market as a whole I follow the Russel 2000, Wilshire 5000, S&P 400 to gain a view on the "overall" market..I'm pleased to see them all doing well....In a football game I will root for the underdog, if it's my football team anyway..I'm loyal to my team....However, in investing, even though I may believe there is greater "value" in rooting for particular companies, I look at a bigger picture..It's not about picking sides..It's about picking winners....The overall combination of fundamental understanding of the market, a sector, a company eventually leads one to an educated "feel" for what companies to buy...It's not something you learn at a university..It's something else-part knowledge, part technical, part "feel".... My own personal journey wasn't always investing in high P/E companies...In fact it was in trading commodoties...and it grew from there--penny stocks, and low P/E companies included...I have made MORE money in high P/E'd stocks, studied why that was, and found that for several decades P/E had a whole lot less to do with making money than what many people think...It's just that the really good companies much of the time will have high P/E's...I've actually come to view this as ONE indication I'm on the RIGHT track in selecting a company to buy into.... I don't want to sound condescending, even though I'm sure it's going to be mistaken as such, but being concerned with P/E is a sign of an inexperienced investor, IMO...Way too much importance is given to it. Regards, George