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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Ilaine who wrote (38276)	12/5/1998 2:48:00 PM
From: accountclosed	Respond to of 132070

Don't forget I am trying to help. Learning valuation is a life long pursuit. When I say it is missing from your discussion, I am trying to inspire you to give it a whack. 'I don't know what Lucent is "worth." ' Whether you "know" or not, you are making a judgment that it is "worth" your money being in there at the present. I challenge you, not for my sake, but for your own, to try to decide what price is the price where you would say "enough, I'm out of here". I think that there are lots of benefits from blazing your own trail and being able to formulate your own notion of value and to act on that notion. As far as PaperChase, I don't disagree. But what is that spot that you are trying to get to. P either declines or E increases...but to what level for your comfort? According to yahoo quote.yahoo.com , Lu's p/e is a sideways eight. What level is the level that we are satisfied with? A p/e of 200, 100, 80, 70, 30, 20, 13? Don't fail to recognize that the higher level you decide is ok, the higher the risk inherent. BTW, it isn't unheard of to decide that you don't have to play the market right now. People get so wound up about what will it do this week or next month or whatever. If it is out of your comfort/risk profile, finding another game for awhile is perfectly acceptable. That is touching on what I was trying to say earlier. A young person who has nothing probably has a different point of view than a retiree who has it made and is living comfortably. We don't all share the same passions for the markets at the same time. Lu is too rich for my blood here, but I am not short the stock either. It isn't going to make me or break me. A stepping back can give perspective.

To: Ilaine who wrote (38276)	12/5/1998 2:53:00 PM
From: accountclosed	Read Replies (1) \| Respond to of 132070

Ok with accepting p/e levels that are higher when interest rates are low. what is your matrix that you are willing to accept: fed funds p/e ratio 1% ?? 2% ?? 3% ?? I am still not going to let you off the hook. You speak in relatives which are true. But it is not good analysis to say well interest rates are low so high p/e's are ok. *What levels of p/e exactly* are ok at fed funds 4.75%?**

To: Ilaine who wrote (38276)	12/6/1998 6:41:00 AM
From: accountclosed	Respond to of 132070

When you say "With respect to Benjamin Graham, I don't own a copy", realize that there are two major works by Graham. The bible is Security Analysis by Graham and Dodd and an easier read is The Intelligent Investor . Both are required reads and required owns, imo. Graham analyzes many different types of markets and examines cases where people thought that new paradigms had ruled the day. Warren Buffett is a Graham student and carries the torch. Also James Grant is a wonderful valuation and general market sanity author. Grant has written four books, one of which is titled Minding Mi$ter Market tipping his hat to Graham.