Re: AW: [CANSLIM] Lack of Buy Candidates

From: "Tim Fisher" <Tim@orerockon.com>
Subject: Re: AW: [CANSLIM] Lack of Buy Candidates
Date: 18 Feb 2002 10:43:21 -0800

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There is a closed fund out there trading almost pure CANSLIM, it is an 
Acorn, I lost the symbol, but when I looked at their holdings several times 
they were all on my watch lists.

At 09:34 AM 2/18/2002 -0600, you wrote:
>Fred,
>
>An excellent point that you make about size of the portfolio. It's the 
>very reason that institutional investors cannot follow CANSLIM principles 
>themselves--they *are* the institution that sets the lead in price/volume 
>action and it's the reason why David Ryan crashed and burned--his 
>portfolio simply grew too large to trade the CANSLIM style.
>
>And it sounds like we are in agreement that comparing your returns to 
>others is not very meaningful---these issues of 
>risk/reward/style/goals/etc are very personal--and it's one of the many 
>reasons why I don't reveal returns or statistics on my portfolio. Your 
>point about setting goals is also extremely important and I'm glad to hear 
>someone bring it up on the list. I agree that the first step to successful 
>investing is setting goals.
>
>Thanks for your comments,
>Katherine
>----- Original Message -----
>From: <mailto:adrich@gte.net>Fred Richards
>To: <mailto:canslim@lists.xmission.com>canslim@lists.xmission.com
>Sent: Monday, February 18, 2002 9:13 AM
>Subject: RE: AW: [CANSLIM] Lack of Buy Candidates
>
>Katherine,
>
>Let me throw another oar in the water.  Percentage returns are totally 
>meaningless for the simple reason that the larger the portfolio, the more 
>difficult it is to make higher percentage returns.  It is the mass and 
>inertia theory coming to bear.
>
>If you have a portfolio that has 10 stocks in it with an average position 
>size of say $10,000 - $20,000, it is easy to enter and exit your 
>positions.  However, if you have a portfolio that is significantly larger, 
>you have a totally different ballgame to play.  It might take you weeks, 
>maybe months, to purchase a position or to exit. During that time, the 
>market is fluctuating and depending upon the trend, it may be in your 
>favor or not.  In the past, it has taken me as long as six months to build 
>a position in a company that had average volume of less than 125,000 
>shares per day without disrupting the market.  Of course, today, the fund 
>managers are not very adept at buying or selling without disrupting the 
>market and as a result, we see dumping on a grand scale.  Unfortunately, 
>today's market conditions are a natural result of a short-term mentality.
>
>I think that the only real measure is whether depending upon your 
>assessment of the risk/reward criteria an investor is comfortable with, 
>did that investor meet, exceed or not exceed, the goals the investor set 
>for their own performance.  Nothing else . . . e.g., comparison to 
>another's performance, is really important.
>
>For example, some people don't short and go to cash when they believe the 
>market is going down. Preservation of capital is more important than a 
>possible gain.  Others are willing to take totally different risks.
>
>In this discussion, I doubt if there is any correct answer for all. Just a 
>correct answer for the individual investor.
>
>FFR

Tim Fisher
Ore-ROCK-On Rockhounding Web Site
Pacific Fishery Biologists Information
mailto:tim@OreRockOn.com
WWW http://OreRockOn.com


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