RE: Extropy Investing Group

From: Ramez Naam (Exchange) (ramezn@EXCHANGE.MICROSOFT.com)
Date: Mon Oct 13 1997 - 12:51:06 MDT


> From: Ed Sona [SMTP:edward.sona@pobox.com]
> What companies would you recommend?  It seems that everyone agrees
this
> is a
> good idea, but I haven't seen a lot of specifics.

Since I work in infotech, my investments are currently concentrated
there.  Following the general strategy of picking market leaders in a
fast-growing market, I would recommend a distribution of investment
capital among the following companies:

Microsoft
Intel
Compaq
Dell
IBM
Sun
Netscape
Oracle

Of these, performance over the past 5 years ranges from the moderate
(50% in two years for Netscape) to the truly astounding (2200% in 5
years for Dell).  Compaq, Intel, and Oracle all come in between 1000 and
1300% over the last 5 years.  Microsoft is a comparatively measly 500%. 
IBM an anemic 200%.

A couple caveats:

1) This performance reflects a very strong bull market in the same
period.  A bull market especially favors growth stocks.

2) This investment strategy is quite likely to produce years of negative
growth.  Use it only if you are willing to accept some risk, and willing
to hang on tight to your investments for a period of several years.

good luck!
mez



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