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I look for "structural stories" i.e. M&A targets, assets whose market value
the market has not picked up, new developments the market will not realize, surge
of liquidity or interest in the stock or sector etc. Whatever it is, simple earnings
growth etc are of little interest to me |
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I don't believe in more than 10 stocks in the portfolio |
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In those ten stocks I like to take large bets (if you are sure of the stock then
go for it, if you are not sure then don't waste your time in stocks) |
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I don't believe in holding any stock for less than 3-5 years (since I play "structural
shifts", that's about the time it takes for the stock to deliver what I hope for
them to deliver) |
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I expect nothing less than a 50% return every year for my holding period (that's
what my goal is in picking stocks so by definition, most stocks will not qualify) |
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If I am wrong or the story is not panning out as I thought, I simply sell the stock
( and so its no use for you to buy a couple of editions of The Boom and Bust Report) |
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I write (and invest) without ego and without preconceived notions. I have only one
goal. My target return |
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I prefer to buy when stock coverage (or the number of analysts are very small).
By definition that is a bear market. But then, I don't really believe analysts necessarily
have vision so great stocks and stories are available in bull markets (i.e. a general
bull market does not translate into a bull market for the stock) but you need to
work much harder |