Page 10

but i still don't know if I should use earning, divd, or Prj Av for Growth. I look at Pri Av on MSFT 1/4ly report from VL and see that they have 35% EPS growth which they run for 2 years and get $5.50/sh in 1991-93 and mult by P/E of 20, getting 110/sh, but then they take square root (110119), why four years it only counting 2 years of 35% growth. And from previous experience with it, I know VL use diff # years for diff stocks ... So bug [...]. Maybe don't even put it in a column. I still think about how to compare MSFT against ND group when they have Fin Str difference of Aus C++. So I select only stocks having FinStr > = B+, so A is avg, but this makes little difference to P/ES! Or even to PrjAvRet. So stick with orig ... But Fin Str is important to me, as it reduces risk, if not increasing Pr, AvRet.

Looking at timelines, I hate that all of the funds are between 2.6 + 3.3, so pretty even, and this is good as it indicates they are well priced, S.T.

Try to convince myseld that d+g should equal EPS growth theoretically, as it seems to empirically , but I cannot. [...]
12:45 Should I go out 70 Eagle or Tubs. Go get glass of wine to cook off [...], and see its been snowing. Streets are white , so stay in. More thought wine makes me groggy.
1:45 To bed. One Am it ....

Sun Jan 8'89

In bed, decide to use Div+G(divd) for return on HD+LD because G(divd) falls between Past EPS growth + Prj. EPS Growth. For ND, do something similar, but Div is 0, so assume G(divd) is halfway between past 5 yr EPS growth + Prj EPS growth. For MSFT, just pick some number.