Subject: IC940725: Investment Experience - Yuan Jiang

From: "Gray Zhu, 800-289-2498, 212-279-6700" <[email-masked]>
Date: Mon, 25 Jul 94 18:11:25 CDT

==================    IC940725: Investment Club  ======================

1. Investment Experience .................................. Yuan Jiang
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1. Investment Experience - Yuan Jiang

>From: [email-masked] (Yuan Jiang)
>Subject: Investment experience

Since Gray asked for contributing investment experiences, I share mine here.

I first select a group of comapanies that are foundamentally sound, and
then buy low sell high.

I know computer and semiconductor industries well, and feel confident
to judge the companies' conditions.  I find that you actually don't
have to know the industy well to judge whether a company is good
or not.  Often I find that your experiences with the comapnies'
you deal with every day as a consumer also give you indications.  For
example, when you take a air trip or go to a department store and you like
thire services and prices, it usually tells you that the companies are
good.

Why not let your friends or Wall Street Journal to tell you whether a
company is good or not?  To be able to buy low, you have to know the
company is sound before every
one else thinks so.  When you heard the news that Crysler's incoming gained
40%, everyone has known.  It should been the time to sell.  There are
several situations that you can buy low:
1) Market swings down, but there is nothing foundamentally wrong with the
economy/market.  The down swing caused by the low dollar a couple of weeks
ago was an example.  Gray recommended "buy".  That was the time.
2) An artificial bad news about the company.  When the company's newly
released earning is down and spending is up.  Everyone takes it
as a bad news.  But you know that the company spent a low in last
quarter promoting new products, and the spent money is busy at work
to bring in more income in the future.
3) Other company's (often an leading company in the industry) bad news
brings down the stocks of the whole industry.

Before a "buy", I always go to the library to check the DJ News to
see whether there is any new development that could affect the foundamental
condition of the company.  This step is time consuming for me (because
the news is not at my finger tip), and often prevents me from acting
quick.  For example, a couple of weeks ago, I wanted to buy more stocks
during the market down swing and when Gray recommended "buy".  But
I was too busy at work to go to the library.  When my work is not busy,
the market is up again.  It would be a nice if I can work with a broker 
who can check the DJ news for me.

Good luck everyone.

Yuan
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