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

To: Investor2 who wrote (6671)	4/10/1999 11:05:00 AM
From: Michael Burry	Respond to of 78576

Means that you should review your stock picks as if you had only 20 lifetime buys to spend. It just is a warning to think carefully and consider only stocks with the fattest of a margin of safety. Practically, I think this is poor advice for the average individual investor. Mainly because I now agree with Paul that diversification is not at all necessarily diworsification, but simply acknowledges that we all can't be five-sigma events. BTW, I just registered www.fivesigma.com Mike

To: Investor2 who wrote (6671)	4/10/1999 12:41:00 PM
From: Walter in HK	Read Replies (1) \| Respond to of 78576

It means you swing maybe 100 times (20 times at-bat in a baseball game), make 100 decisions to invest in a stock in your life. If you thus ration yourself, you are bound to investigate more thoroughly. I certainly have sinned against that, but I have had three-year periods when I didn't invest in anything because I didn't find anything that I really liked. I think it would be a good rule if one had he willpower to stick to it. It was not spelled out, as I remember, but I would think, if you have dividends or savings accumulating, you can buy more of what you already have. Obviously, this rule was not meant for daytraders ! Nor TAs. But show me a TA who made and kept 1 % of what Warren Buffett did. Walter in HK