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Dear Tom and David:

I just finished your book and enjoyed it immensely. One bit of information concerning the Rule Makers section has me puzzled and I would appreciate your (as well as anybody else's) opinion.

According to the philosophy set forth in the book, one should buy a Rule Maker at any price, once you have determined it to be a "good" Rule Maker. But obviously, while it may be good to buy Microsoft at 400 a share (which it will someday probably be worth), it would be better to buy it at 100. Otherwise, all future growth for the next several years (to decades!) may be factored into the currect price, making it to be a poor investment.

I know you are not advocates of timing the market, but there should be a way of evaluating what is an appropriate price/value for the stock.
I know you addressed this matter in the Motley Fool Investment Book. Do you feel the same valuation method is applicable for Rule Makers? If not, what type of valuation do you use?

Steven Caplan
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