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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club -- Ignore unavailable to you. Want to Upgrade?

To: Math Junkie who wrote (2362)	12/3/1998 11:21:00 PM
From: Investor2	Read Replies (1) \| Respond to of 15132

Re: "Margin is very dangerous." The day of the big crash in 1987, my good friend, who was margined to the hilt, was sitting in the office next to mine, getting margin call after call from his broker. He was forced to liquidate his entire portfolio plus some at the bargain basement crash-day prices. He swore off equity investing that day and has never re-entered the stock market, thus missing out on the greatest bull market of all time. On the other hand, conservative old I2, with no margin and a little cash on hand, was able to pick up some unbelievable bargains. Many of the bargains picked up that day were subsequently sold for nice profits and converted to a nice new home for my family. Yes, I have seen the dangers of margin. Best wishes, I2