Interactive thread on investment-related questions

[kakaballi]

Re: Interactive thread on investment-related questions

@Southie

Actually that is an excellent question. I do not believe in constantly getting in and out of the market. Most of funds are in index funds - dollar cost averaging.

Have set aside some funds to pursue my hobby to pick individual stocks. I try to pick stocks that are temporarily out of favor, have low valuation with rock solid balance sheet. And have mkt cap > 10 bill dollars. And been around > 20 years.

And no I do not believe in efficient markets. Markets reached nosebleed levels in 2000 and Oct 2007. Reached rock bottom 2003 spring and 2009 spring.

That’s what I am asking. Why do you believe that a stock with > 10b mkt cap and rock solid balance sheet goes ‘out of favor’? I would say several analysts would be following a stock with > 10b mkt cap and price would already have adjusted to reflect their assessments. Unless, of course, you are looking for less than market return with lower risk.