Criticism on Technology Stocks

"I'm thoroughly convinced there's no franchise to these businesses. Product cycles are so fast that it's difficult for them to make money. There's no barrier to new competitors." -- Jim Craig

Practicality

In the 1970s, Tom Bailey said: "If you can't wear it and you can't eat it, don't buy it (the stock)".

I find wisdom in his sentence. There are too many dubious stocks that are not worth our investment. For Bailey's statement to stay relevant in 2010, I'm revising it to: "If you can't wear it, eat it or use it... don't buy its stock."

Value Investing

"When you buy a stock, you're not buying a piece of paper; you're buying part of a business. There's often a huge spread between the intrinsic value of the business and the price that a frequently manic stock market is putting on the paper. Buy a stock significantly above intrinsic value and you court a loss. Buy below intrinsic value and you have a good chance of making money over the long haul, with little risk of taking a permanent hit on your capital." -- Benjamin Graham