Greetings Windchasers,

This reminds me of an article over on the Efficient Frontier site called, "How Much Pie Can You Buy?" found at http://www.efficientfrontier.com/ef/102/pie.htm that has some thoughts about Growth stocks.

Though for a bit more background, consider the "Of Mines, Forests, and Impatience," at http://www.efficientfrontier.com/ef/401/fisher.htm from the same site.

I do like the comments at the end of the article:
"The conclusion boils down to this: Which do you believe more, DCF models on individual companies that are developed by analysts with no conflicts of interest who specialize in their respective industries or shorthand methods of valuation that are prone to GAAP accounting distortions and focus on the very short-term future or the trailing 12 months?

For my money, I'll take the discounted cash-flow valuation methodology every time. I believe it shows a more robust picture that is consistent with economic reality. The Nasdaq isn't a sell right now, it's a hold. "

However, in looking through statistics and trying to make projections and estimates, I am somewhat reminded of why I like to have a somewhat simplistic approach of just buying a few good funds and rebalancing among them and not really try to dig too much into this.

Regards,
JB