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Strategies & Market Trends : Graham and Doddsville -- Value Investing In The New Era -- Ignore unavailable to you. Want to Upgrade?

To: Freedom Fighter who wrote (992)	11/13/1998 7:03:00 PM
From: Berney	Read Replies (1) \| Respond to of 1722

Wayne, I wanted to get the definition off by itself. I believe there is a fine line between "timing" and only investing when the valuations are reasonable. Clearly, Graham was not advocating a buy and hold strategy and clearly stated this. He noted that one should buy when valuations were reasonable and sell when valuations were unreasonable. The difference is that he was not applying this concept to the market but to individual securities. However, as Wren pointed out, emotions frequently get in the way. It was not until July, 1997 that IBM exceeded the high set in August, 1987. WMT is my favorite. It is in a small group of 20% of the S&P that has done everything that could be expected. They have achieved revenue and EPS growth for 6 straight years. Nonetheless, the stock closed at $32 in December, 1992, and did not see that valuation again until June, 1997. I could cite numerous other examples of quality companies whose stock became overly valued and it took years to recover. I believe that, due in large measure to this medium of communication, cycles that took months and years in the past to complete are now being completed in weeks. Just my humble observation. I readily agree with you that the tide tends to affect all the ships in the harbor. Nevertheless, where we differ is that I believe there still exist reasonable valuations of individual securities (though getting fewer in number). I am not will to paint all stocks with a single brush stoke. Berney