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

To: Richard Nehrboss who wrote (38392)	12/7/1998 5:48:00 AM
From: accountclosed	Respond to of 132070

Appraisers and realtors are the analysts and stock brokers of the real estate world. You may have somewhat less freedom to not buy a house if housing is beyond your sense of value in your market. But nothing makes one buy stocks if stocks are beyond one's sense of value. An investor doesn't have to be in the market every single day. So I would say in a pure sense, demand shouldn't enter into the equation for a value investor. The nature of this debate with Coby is whether it is possible to have a judgment of value that is independent of notational prices in the market. She said "I admit that I am unable to state the value of a stock without reference to its price" last night. Message 6716462 I have argued that value investing has its limits. For instance I think that people on this and related threads have been right in their analysis, but have been too early turning negative on stocks, because they underestimated the power of the marketing effort that Wall Street had undertaken over the last decade or so. To bring these thoughts together, I think it is important to know what value investing is, to understand it, and even to practice it first. Then examine its limits and decide what other factors might cause one to suspend value investing principles due to special circumstances. What I would suggest to Coby is that she is already breaking the rules before she has a firm handle on what the rules are. Crawl before you walk; walk before you run. But Richard, I have also argued that although Value Investing is what I believe in, there are other approaches that work for other people. I would use a baseball analogy and say that there is room in the game for fastball pitchers, homerun hitters, short relievers, good fielders, pinch hitters, etc. If a different approach in investing works for someone, that's cool with me.