Foutaise !!!!
There is the market's risk and there is the risk related to individual stocks holding.
About the first, I believe that there is nothing you can do, except to diversify our portfolio. This is why that I still believe that a balanced portfolio should have some gold stocks (10-15%), even if for many investors and analysts this approach is out of favor.
About the second, corporations which have good products, strong management team (dedicated to increase values not for only their shareholders but their employees (Why the hell, we need 2 ee in English at the end of this word. Just kidding Mr. CHa...) and the community at large, like Sun Microsystems), a good balance sheet (with some cash in hands), a past history of decent net margins (5% at least), will be able to go trough this turbulence period and exit stronger. When you can find this king of corporation trading at near or below their net conservative book value per share (the book value excluding goodwill and others not real hard assets), at a psr of less than 0.40, I believe that our margin safety is quite high, quite better at least for what you would have get for the same corporations 12 months ago.
Have a great week end all and sorry for my English mistakes.
Yours truly,
Gilbert |
