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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Sun Tzu who wrote (28792)	3/3/1999 2:14:00 PM
From: J Bertrand	Read Replies (3) \| Respond to of 70976

For those who are think that Mr. Tzu's advice to become a trader is correct, please read the quote of the day: "In the annals of investing, Warren Buffett stands alone. Starting from scratch, simply by picking stocks and companies for investment, Buffett amassed one of the epochal fortunes of the twentieth century-more than enough to iron out the effects of fortuitous rolls of the dice-Buffett outperformed the stock market, by a stunning margin and without taking undue risks (HE MEANS TRADING-my quote) or suffering a single losing year....By virtue of this steady, superior compounding, Buffett acquired a magical-seeming net worth of $15 billion, and counting." He didn't do it with bonds, gold, treasuries or other investments. It was stocks. He didn't trade, day trade, play leverage hedge bets or what have you. He bought the best stocks and patiently held. People, please don't fall into the trap that trading is what is going to make you rich versus buy and hold. The phrase "rich trader" is an oxymoron. Jeff Bertrand

To: Sun Tzu who wrote (28792)	3/3/1999 3:56:00 PM
From: Robert O	Read Replies (1) \| Respond to of 70976

ot> mixing apples and oranges gets you fruit salad. Nothing does worse than equities???? May I offer you some gold coins so that you may tuck them away and simply wait out the "inevitable" major correction that all predict but never truly comes? Or perhaps the answer is a savvy real estate investment that will pale in comparison to equities in the long haul. By eliminating the concept of reinvestment of dividends over time you are eliminating a HUGE portion of long-term return since compounding plays a major role. When literature refers to buy and hold they typically mean it, which means reinvest dividends into more shares. Why would you hold the stock but reinvest dividends in, say, silver... as a hedge <g>?? This argument reminds me of the three statisticians who go duck hunting for the first time. The first statistician shots and misses the duck by 6 inches too high, the second statistician shots and misses 6 inches too low, the third statistician exclaims: "we got it!" Look out below! RO P.S. Almost without exception Buffett ends his annual report's personalized message with this caveat: "we did well this year, but do not expect next year to be nearly as good" ... you can imagine the investors' surprise when he tops each year.