The Daily Workshop Report
by Robert Sheard (TMF Sheard)

LEXINGTON, KY. (Feb. 24, 1997)

A State of the Workshop Address

We're settling into something of a comfortable routine in the Workshop, which presents as good a time as any to present a State of the Workshop message. "We've got to work together, bridge the gaps, reach out to everyone, reform campaign finances... "

Sorry, wrong state of the union address.

Short and sweet, let me say that I'm thrilled about the way things are going. The original intention of the Workshop was to present lots of raw material for readers to work with, tinkering, experimenting, testing, discussing possibilities. That is, we wanted this area to become truly collaborative. And a simple stroll through the message folder for the Workshop (sorry Web readers, this is still an AOL-only feature; we're working on it) should demonstrate the vibrancy of just such an agenda.

We have a range of ideas, cross-currents, experiments, debates, all going on at once -- exactly what the environment of a workshop should be. Some readers would wish it a more homogeneous discussion, focused only on certain approaches or strategic experiments, but I reject that. I learn in lots of different ways, among them, from theories I ultimately don't embrace.

There has been some concern that perhaps there's too much discussion of technical analysis or "trading techniques." I don't agree. First of all, I'm not a huge proponent of labels, even though we're forced to use them frequently. For instance, is a Growth screen that includes a stock with a low Price/Sales Ratio really a Growth screen or a Value screen? Is Relative Strength technical analysis or fundamental analysis? And does it really matter?

What I am very interested in, though, is accountability. When we discuss an idea, does it work consistently? Can anyone do it? Does it make sense for a particular strategy? That's what really matters. To paraphrase a favorite aphorism of Deng Xiao Peng's, it doesn't matter if the cat's white or black so long as it catches mice. So, I'm not anxious to squash any topic, even if it's one I don't happen to agree with.

We're all friends here, and we're all working for the same things, useful approaches that the individual investor can use to increase his or her wealth over the long haul. The people who aren't interested in that won't stick around long anyway. But for those of us who share that goal and like discussing these issues and sharing what we know and discover, I can't think of a better place for it than a Workshop such as ours.

The State of the Workshop, Fools, is strong. Enjoy it and may Folly reign. "Who lives without folly is not so wise as he thinks." (La Rochefoucauld)

Monthly Growth Screens
     (Jan. 3 to present)
  27.20%  Relative Strength  
  20.79%  YPEG Potential  
  15.48%  Low Price/Sales  
   8.32%  S&P 500 Index  
   3.65%  Investing for Growth  
  -7.92%  EPS Plus RS  
 -10.86%  Formula 90  
 -11.31%  Unemotional Growth  

Annual Value Screens
     (Jan. 1 to present)
   8.68%  Dow Jones Ind Avg  
   8.38%  Dogs of the Dow  
   7.73%  Beating the S&P  
   4.78%  Dow Combo  
   3.78%  Unemotional Value  
   3.78%  Beating the Dow  
   2.31%  Foolish Four