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Strategies & Market Trends : Value Investing

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To: Spekulatius who wrote (62220)	7/23/2019 1:56:14 PM
From: Paul Senior	of 78667

Looking through my portfolio I can't say for certainty that purchasing well executing companies is better or worse than purchasing reversal to mean companies. (Best case seems to be purchasing well executing company whose stock has declined for other than business performance and where reversal to mean is hoped for.) I seem to be letting well executing companies and their well performing stock continue to run, and so the percent gains over time seem higher than reversal to mean choices. Plus, with reversal to mean plays, I am not willing to bet much (compared to my past buys and adds to well executing companies), but I'm willing to buy more of these reversal types (being a diverse group, and also a larger population to chose from). So my gains, if any, in a reveral to mean stock seem smaller in absolute dollars as well as % gained, compared to a well executing company and its stock. There's risk component to be considered too. With reversal to mean stocks, given a number of them, they may be less risky or maybe less volatile than keeping money only in a few well performing businesses and their well perfoming stock.

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