Subscribe Feed (RSS)What Is Value Investing Anyway?
January 14th, 2009 by john | Filed under Uncategorized.Stock spin-offs are supposed to be part of what is called value investing, but what the heck is that really?
I know, I know, it’s finding stocks that are actually worth more than the market thinks they are and buying them before everyone else finds out. Then we sit back and pray that we don’t find out that everyone else knew all along that in fact the market had it right all along, but rather is going to find out just in time for us to sell our stake to them.
Fair enough and these situations do happen, but we are talking money here and to other participants in the marketplace aren’t dummies.
It is a pretty tall order to find mis-priced merchandise when you are up against the stockpicking equivalents of Michael Jordan, Peyton Manning, and Joe DiMaggio every day, but we are trying to do exactly that. And, as the old cartoon character Snagglepuss used to say “And don’t you forgit it!”
I think that a better definition of value investing ought to include finding corners of the marketplace where the very smart, very savvy, very tough superstars either aren’t allowed to work or where it is not worth their time to work and, hopefully, where we actually have an edge.
Everyone, including short sellers, is trying to buy low and sell high.
