“We own L-3 because it's a good solid stock as opposed to being part of an industry theme play, ... The defense industry has the wind at its back now but most companies don't have the earnings consistency we're looking for.”
“At this point, we're watching tech carefully but we are not ready to pull the trigger yet and buy more with this volatility, ... What seems to be consistent is that whoever just went up is likely to get clocked soon afterward.”
“The real strength in the market in 2003 was from small-cap and mostly busted companies. It was a huge sigh of relief that many unprofitable companies did not go out of business.”
“Some of the worst companies have been the best performers. But a lot of the recovery in the poorer-quality companies was just relief that they survived. We're finally starting to see some better action in the higher-quality names.”
“We are not heavily invested in tech and are not likely to be so until we see fundamental progress. We've always selected companies with strong earnings growth and most technology companies don't have that at this point.”
