John: your point about the risks of margin is very appropriate. As I said, I haven't used it in almost 2 years. I have to see a wonderfull opportunity before I'll do it. A great company, and a great price.
Re: broken quality techs: yes, that's my style. I wait and wait and watch and think, often for years. When I'm sure (inevitable is the word Buffett uses) the longterm prospects are good, but the market hates the stock, that's when I put 10-20-30% of my money into a company. I rarely hold more than 5 stocks.
I've got 25% of my money in WCOM, which I bought in May, at an average cost of 39.
I've got 10% of my money in INTC 2003 80s, which I bought on 5/31, when the stock hit 64.
I'll probably sell the FON I recently bought, so I have cash for QCOM. I still think someone may offer 75 for FON any day now.
I wish there were no margin restrictions on QCOM. Doesn't really make sense to have no restrictions earlier, when the stock was above 100, but have them now, when valuations are reasonable. I suppose the maximum restrictions will happen just as the stock bottoms. |
