My philosophy is very similar to Mike's. I understand Buffett's logic and will buy that type of stock if it is unfairly priced. I only know of one of those today, so I'm making a list, checking it twice, and building up cash for a bear market.
In the meantime, I will buy Graham value when I can find it, and stay 15-30% in cash if I can't (I am 25% in cash now, to answer that question). Tejon Ranch, St. Joe Corp. made me a lot of money faster than I had expected. Today I think HYDEA, US Can fit that strategy. HYDEA has been an underperformer, but like Mike, I don't care. When the market tanked in October, Hyde didn't move. When it moves to its net asset value, I will sell. That would be a 40% gain. It might do that in a bull market, it might do that in a bear market. I can't imagine it going much lower, no matter how bad the market gets. Actually, today I would love to have a diversified portfolio of 10 HYDEA's. Then I could forget about "beating the S+P, and just sleep much better. But I can only find a couple. |
