To: On the QT who wrote (81670 ) 11/21/1998 8:37:00 PM From: Voltaire Read Replies (5) | Respond to
I found your post to be quite intriguing. I have been stunned by the reaction to something that seems to come quite naturally for me and also something I never gave a second thought. To answer you more directly, it is not so much that I review what I have or have not done in the past, as it is to simply adjust to what is in front of me at the present time. There are very few absolutes in my life. That is just the point, there have been a lot of people hurt financially with their investments because the pundits, brokers, investment bankers and soothsayers of the investment world do deal in absolutes and will not accept the fact that we are in a new paradigm. If people don't believe this then go ask Mr. Greenspan and Mr. Reuben. Investors would do well to realize this. We Americans have about 12 to 15 years to set ourselves up before we realize we are going to be number two in the world economically. It took Japan less than 40 years to come from ashes to the worlds leading economic power. Well the Taiwanese came after them, the South Koreans followed and you had better get ready for the next economic super power CHINA! This archaic adherence to deep investment in only superior pleasing low PE stocks and abbhorence to the high multiple Super Vehicle stocks is folly. The last time I looked the fruit was out on the end of the limb. It is great for mavericks like me but it does not bode well for the average investor who has turned his investment future over to some greenhorn broker schooled by Barton Biggs, Jimmy Rodgers or some other recalcitrant depressionistic negative thinking greybeard. I am convinced beyond a shadow of a doubt that the new investor of today is not in the market to make money. They are in the market for a thrill and to get rich quick. They do not care about XYZ Machine Works in Ft. Wayne with a Barton Biggs PE of 10 and a book value of $5.00 per. It is this new investor mind set that allows people like me to make money on their greed, urgency and "chase the wind" attitude. Some people scoffed at my reference to making easy money. If people were in the market just to get a return, it is simple, easy but very boring. Anyone reading this post can make all the money they want by just doing the following. To my mind there are 5 to 7 super stocks that have what I like to call Vehicles in their fields. They are in order 1. DELL 2. AOL 3. MSFT 4. LU 5. INTC 6. WAL and 7. HD. Investment in these Vehicles will make you all the money you need but by you investing in them solely, they will NOT make the BROKER or HOUSE all the money they need. That is why most Mutual funds are down 20 t0 30 % on the year. Now if an individual is not satisfied with just owning the above mentioned Vehicles, then write Covered Calls on them and you will probably get no less than a 75% annual return on your money. Not too shabby. The young investor today is doing the URGENT not the IMPORTANT. The SOES traders are urgent to make an eighth, the shorts are urgent to cover, the MM's are urgent to clear their books and the unbeknownst investor is urgent to buy or sell at market on the open. All I am saying is that without a lot of sophistication and a little deduction there is money to be made by doing the important and that is to just look at what is taking place in front of you.
