Value Investing, My Eye

Nice try. Jeffrey M. Laderman and William Miller can call it "new value investing" if they want to, but I know growth stocks when I see them ("Value investing is back--with a twist," Cover Story, June 14). If Bill Miller is a value investor and if AOL, Dell, and Microsoft are value stocks, then Graham and Dodd are surely turning in their graves.

If you want to enjoy success as an investor in a low-inflation era, buy growth. Remember the "Nifty Fifty" growth-stock era that ran from the onset of low inflation in the 1950s to the OPEC oil embargo of the early 1970s? After the embargo, with inflation raging, value investing became king. Someday, for much the same reasons, value will be king again. As for now, growth rules.

Thomas F. Heald

Eads & Heald Investment Counsel


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