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Dear Greg,

It is important to understand that when you buy Nokia you are buying a supreme company which is like Park Avenue, Beverly Hills and Monte Carlo all wrapped up in one. I admire you being a Ben Graham fan as I do a lot of Extreme Value investing using his methods. I have talked to many people who are salepersons in the Nokia lines and they are selling like crazy. Its PE is 41 that is true and it is not cheap at the present moment but if you forcast it out 5 years then it is cheap. It all depends on your holding period and your ability to handle volatility. Fisher I would Imagine considers PE important as he always concentrates on the price paid, but Management is his most important concern. Nokia is the absolutely the last stock that I worry about for it has as perfect a management as they come. The average age of the top Management is about 48 years of age. Thus when one buys Nokia they have a management that will be in place for at least 17 more years. I would imagine that Fisher owns Nokia for he is seeing very clearly how they are doing against his favorite Motorola. Its scary as to the market dominance that this company has. If you are worried about the valuation then my suggestion to you is to buy a few shares then open a Dividend Reinvestment Plan through Nokia and Dollar Cost Average. Nokia will be around for a hundred years and will make us all rich. I admire your conservatism as it is something that is lacking on Wall Street today. Remember its better to be safe then sorry. People tell me their investment horror stories all the time when they find out I am a Financial Analyst. I hear how people are just losing Massive amounts of money for "they no not what they do". Just today someone told me that he lost his entire investment in Protein.com , Now I can't even find the damn thing listed anywhere. He invested $10,000 on a friends recomendation and lost the whole amount in a few months. Everyone must understand that there are a lot of criminals on Wall Street whose greatest pleasure is stealing the hard earned money from the small investor. The reason that I have choosen TMF to be my ProBono work is because it is my mission to be a helper of the small investor and that is TMF's mission also. No matter how hard TMF tries or how many 1000's of posts I pump out, It all boils down to the small investor doing some research on his or her own. Spend as much time on a new stock as you would on buying a new car. Kick the tires before you buy, as for Nokia it is my largest investment and I sleep well every night knowing that Jorma is my CEO, I wish I could say the same thing about KO CEO Douglas. But thats the way the game operates. It must be remembered that ones fortune is dependant on the management making the right moves, for the Shareholder is 100% dependant on the management to do the right thing. You better be sure they are good if you are a growth investor, for a value investor it doesn't matter as much for you are investing in Assets.

Good Luck to you Greg,

MYCROFT
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