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Technology Stocks : Broadcom (BRCM) -- Ignore unavailable to you. Want to Upgrade?

To: Keith A Walker who wrote (1112)	3/15/1999 8:31:00 AM
From: Keith A Walker	Read Replies (1) \| Respond to of 6531

Some snippets from Barron's article on New Nifty Fifty and premium P/Es paid for growth: interactive.wsj.com "Siegel has recalculated the returns through the end of last August and come up with similar results. Over the extended span, the original Nifty Fifty produced a 12.5% annualized return, slightly behind the 12.7% for the S&P. The table on this page shows the returns of the individual Nifty Fifty stocks. The returns on them and on the S&P would be higher if calculated until now, and the spread likely would be narrower, given the strong showing of the Nifty stocks since the market's August lows, Siegel surmises. Tables: Were They Worth It? \| The New Nifties interactive.wsj.com "Good growth stocks are expensive, but they can be worth the price," he adds. His conclusions have buttressed the arguments of growth-stock enthusiasts, who maintain there is no better place to invest over the long run. The matter of size is important. It's one thing for small companies to grow rapidly for extended periods. It's another for behemoths. "Very few large companies are worth 75-100 times earnings, no matter how you justify it," argues Ross Margolies, manager of the Salomon Brothers Capital fund. "At a certain point," he adds, "it becomes mathematically impossible" for big companies to grow rapidly enough to justify their multiples. -------------------------------------------------------------------------- I will offer that Broadcom is not a behemoth, and that we are still at the lower-end of the classic S-curve for their technologies, hence, rates of exponential growth are not only mathematically acheiveable, but, highly likely. The bottom-line on BRCM is that any correction can be viewed as a buying opportunity. Enough preaching to the choir on this one.

To: Keith A Walker who wrote (1112)	3/15/1999 10:37:00 PM
From: Raymond Duray	Read Replies (1) \| Respond to of 6531

Well Done Keith! I do so desperately want to forget all I learned in Graham's "Security Analysis". I'm reminded of of a comment (perhaps apocryphal) attributed to Warren Buffett who said recently, "I started out with about $10,000 when I left Ben's firm. If I had followed Ben's advice, I'd probably still have about $10,000." However, 3 quarters seems so fleeting a period of time on which to judge an equity. Though for the rocket scientists in the Danny Miller fan club that must be just a friggin eternity. Bye