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Undertoad · 03-21-2008, 09:01 AM

Lynch's strategy makes sense, as it did when he first wrote it, what, 20 years ago? After learning it as a manager of funds...

But this handful of stocks has a problem: they are all in one sector, technology. If you had looked at a different time frame, say the time frame ending in the dot-com bust (to be a little too obvious), they would all be dogs and you'd underperform the funds.

Ideally your handful includes stocks in many sectors; it is exactly the same strategy as W.Hi.P's defencive betting schemes in the "Betting tips" thread.

BTW I got out of VSEQX about two years ago. But not for good reasons.

03-21-2008, 09:01 AM	#40
Undertoad Radical Centrist Join Date: Jan 2001 Location: Cottage of Prussia Posts: 31,423	Lynch's strategy makes sense, as it did when he first wrote it, what, 20 years ago? After learning it as a manager of funds... But this handful of stocks has a problem: they are all in one sector, technology. If you had looked at a different time frame, say the time frame ending in the dot-com bust (to be a little too obvious), they would all be dogs and you'd underperform the funds. Ideally your handful includes stocks in many sectors; it is exactly the same strategy as W.Hi.P's defencive betting schemes in the "Betting tips" thread. BTW I got out of VSEQX about two years ago. But not for good reasons.