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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (5418)	12/14/1998 9:45:00 PM
From: Freedom Fighter	Respond to of 78747

Paul, >>Similar with VVTV which I bought last year as a value stock (and it still may be), but profitably sold a couple of weeks ago as VVTV got pulled up in the internet craze. For me, I seem to do better when I just sell since my ruling reason for buying was that it was a value stock.When I start thinking they're now growth stocks, I succumb to holding and I seem to lose out.<< I realize that most investors consider value investing and growth investing to be separate disciplines, but I don't think they really are. They are joined at the hip. Future probable growth is a significant factor in determining intrinsic value. If two companies have identical book values, ROE, EPS, management, balance sheets etc... yet one has a greater opportunity to reinvest capital, it is more valuable. The trick is to value the growth component of its prospects. There are all sorts of approaches to this. I think it is worth the effort to try to do so. Even Graham would agree with this. He just discouraged pie in the sky valuations. Buffett on the other hand has done a great job of identifying companies whose growth is almost certain and long lasting and therefore extremely valuable. Compound interest/growth at high rates over long periods gets one rich. Especially if it is purchased at a bargain and you get to participate in multiple expansion also as it reaches fair value. Cheap but lousy companies often work out poorly because even a CD grows at the rate of reinvested interest. You must be able to grow or if the revaluation occurs slowly the investment will be poor. Don't you agree? Wayne Crimi members.aol.com