It sounds like you are making assumptions. I chose Coca Cola because I am
reasonably familiar with the management and the major changes they made
several years ago, and because I have discussed the company with those who
know much about it and have been convinced that it has long-term growth
still ahead of it.
The same (only more so) would have been true if I had bought Microsoft,
which I certainly would have done if its stock hadn't been at an all-time
high (though still a good value). I know more about Microsoft, how it's run
and its markets, than I know about any other company. With almost any other
company, your comment would be correct -- I know too little about
practically any other company to base an investment decision on it (rather
than simply a gamble). Apart from two or three companies, my knowledge is
such that I would buy a broad index fund rather than individual company
stocks. (If I could afford it, I might make an exception for Berkshire
Hathaway, but then that would be like buying several companies....)
Max
Max More, Ph.D.
more@extropy.org
http://www.primenet.com/~maxmore
Author: The Augmented Animal (Forthcoming: HardWired, 1998)
President, Extropy Institute, Editor, Extropy
exi-info@extropy.org, http://www.extropy.org
(310) 398-0375
EXTRO 3 CONFERENCE on the future: http://www.extropy.org/extro3.htm