To: Frank Sheridan who wrote (321 ) 11/24/1998 7:22:00 PM From: Sun Tzu Read Replies (1) | Respond to
Frank, the list is an intelligent starting place based on factor analysis. I sort of know what each company in there does, but I'm not very familiar with any of them. The point is that you can look at their 5~15 year charts and see how volatile they are. There is a representative from almost any industry in there, so you can chose the ones that you like. All these companies have very good fundamentals and interesting charts. At least to the computer, they all look the same. The question is, are they what you want? Personally I would not invest in about 10 of them. But that does not mean that you cannot. When you talk to the best fund managers and traders, they tend to site sticking with their "system" as the cause of their success. In other words, they are saying that if you are consistent in your stock picking and you don't jump around from branch to branch (like switching back and forth from fundamental to technical analysis or from value to growth) then you will make money. I don't think this is very accurate assessment. I think the consistency that they are talking about is a by product of something even more fundamental. The best traders choose methods that matches their psychology. This makes them at ease with their positions and that is what allows them to remain calm and consistent through out the market turbulence.is a good discussion topic.
