The late Al Frank had a newsletter, the Prudent Speculator, which was ranked
very highly on return for 10 & 20 year periods (some 23% annual avg.)
He's a long term investor (avg 6.5 years), fundamental value.
NOT day trading!

Here's a bit from an interview with its current author:

You recommend that your readers carry fairly large portfolios. 

Diversification is so important to our strategy. In a million-dollar
portfolio, we think you should have 100 stocks, minimum, representing more
than 20 different industries. In a $100,000 portfolio, we'd like to see
30-35 stocks. When you get below 30 stocks, the Worldcoms can really kill
you. No matter how much homework you do--and analysts still did a lot of
research on Enron and WorldCom--you can get caught with your pants down. 

----
I find this level of advice useful, but also frightening; I don't have even
$10 000 to invest now, so maybe I'm better off staying out.  Or just buy
some ShareBuilder dollar cost averaging; not going to subscribe to a
newsletter ...

Tom Grey

http://www.forbes.com/pushfiles/ipaq/0628adviser.html  is the article
http://www.sharebuilder.com/  looks like a good program for newbies, and
poor folk (like me).

-----Original Message-----
From: Bryan D Caplan [mailto:[EMAIL PROTECTED]]
Sent: Monday, August 05, 2002 6:24 AM
To: [EMAIL PROTECTED]
Subject: Re: efficient markets ...


Koushik Sekhar wrote:
> 
> How many of you (of those in thes US) who believe in efficient markets are
> investing in US equities now and have invested in them in the last 2 years
?
> If your answer is NO then why are you not investing in US equities because
> if markets are efficient all bad news must be priced into the stock prices
> .. right  ?

I am.  I am increasingly convinced that crowd psychology plays some
role, but changes in crowd psychology don't seem any more predictable
than anything else.


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