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Intel Corporation Message Board

  • cdhscottsdale cdhscottsdale Jul 21, 2011 10:00 AM Flag

    BULLS BEARS AND ZEBRAS

    Interesting philosophy in the following, which is applicable to Intel today:

    Bulls, bears and ... zebras? A top-performing letter says don't panic.

    Editor Charles Mizrahi has the engaging habit of leading each issue of Hidden Values Alert with something interesting, perhaps because his fully invested, number-crunching fundamentalist technique is a bit, well, B-O-R-I-N-G.

    Recently he reflected on recent brain research into physiological changes caused by threat: "When we panic, the blood-flow activity shifts from the prefrontal cortex (front of the brain), where we rationalize and make decisions, to the middle brain (periaqueductal gray). That's the area of the brain that gives us the 'fight-or-flight" response." Ah.

    Mizrahi's investment conclusion: "My suggestion for when you have the urge to do something--especially during periods of fear--is to take a time-out. If the conditions that existed when you originally made the investment still exist, then don't do anything. Does it make sense to sell out of your position if the company's balance sheet is stronger than it was when you bought the stock and the valuation is currently lower?"

    "Keep in mind that we're hardwired to panic when our brain senses danger to our survival. Put investing in perspective: You're not a zebra being stalked by lions on the plains of Africa ... so don't allow your brain to act as if it's so."

    What's particularly interesting is that Mizrahi said this in Hidden Values Alert's current monthly issue, published June 20, when stocks were at the bottom in their six-week swoon.

    So not panicking worked for Hidden Values Alert then--and something has been working for it for quite a while.

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