Jellow


Unfortunately, for many people the stock market is about gambling and of course their all losers in the market.The big winners take calculated risks with seasoned companies when their out of favor and hold on for the long haul. In that way they not only make money but they add a few percentage points to their returns by not paying capital gains taxes since they don't buy/sell all the time.


Trying to find the next Microsoft/Dell etc.. is like looking for a needle in a haystack. For every Microsoft/Dell there are literally hundreds of companies that were trying to do the same thing and they are all broke and so are the investors that bought their shares.


Remember when the market looks the bleakest is usually the best time to start buying. Don't believe me let me cite a couple of examples;The bank panic of the early 1990's every one said it was over for the banking industry, companies like Citicorp could have been picked up fo 10/share and went up tenfold in 10 years.PNC bank, Bank of Boston, First Chicago(which got taken over) all went up 5-10 times.Yet you couldn't find anyone who would even touch those companies yet they proved to be big winners.


People always insist on buying when things look great but unfortunately you pay a very high price for a cheerful consensus. Who could forget the recent debacle of the tech sector. Investors thought they were going to the moon and they got close but eventually sanity set in and they stumbled hard.Take a look at Lucent at one point it reached 84 it's now at 6 but investors were buying like crazy at 70 and up because the buying fed on itself. They couldn't get enough.Oh how we forget the lessons of the past.Interestingly,investors couldn't get enough of the tech sector when it was sky high yet now they have come down 60-90% nobody will touch them.Now is the time to start looking at the tech sector and see if there are some bargains among the ruble. I got a feeling 3-5 years from now were going to here i remember when i could have picked up Motorola for 16,Lucent at 6,etc.. but i couldn't do it because everyone was saying stay away. Oh how we need a cherry consensus to lay are money down but of course at a price. Lar