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Thanks for characterizing our respective approaches so clearly (and so graciously). Yeah, I'm a context guy and use a "from-the-outside-in" approach that drives most people crazy. They see the target and want to focus directly on that, whereas I keep saying, "Well, I'm not sure that *is* the target. LOL. I could quote a ton of research to justify such an approach. But, at bottom, it's purely a personality/temperament matter and has little to do with reason. It's who I am, just as you are who you are, which might be an advantage to the project. Two heads --two approaches-- can be better than one if each gives the other the space they need to emphasize the factors they see as important. In other words, a friendly "shoot out" of the sort TMF hosts when they do "bull vs. bear" discussions of stocks.

You make a good point about the AMEX and its reporting requirements and one I hadn't considered. But I'd still argue that the quality of the reporting has to be determined by the investigator her or himself and that companies whose situations are blatantly clear are a waste of time to look at. The best that can be gained from them is what indexing would produce because all relevant info is already priced into the situation. What a classic value investor is looking for is mispricing. Therefore, complexity, confusion, and obscurity are all welcomed. Clarity and quality, OTOH, are costly to potential excess returns. Dumpster diving is what we need to be doing and the "straw-hats-in-December" approach.

What I see you advocating is similar to the NAIC approach and momentum investing, which is a sound, methodical approach and a profitable one when markets are stable. But I don't think we can look forward to market stability given the macro-fundamentals. Therefore, we need the downside protection that a value approach can offer.

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