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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (62220)	7/23/2019 1:18:11 PM
From: richardred	Respond to of 78671

>have been much more careful to buy a stock in the hope of some reversal to the mean I do believe this is an excellent strategy, but not one as myself being a private individual investor I'm fully subscribed to YET. Once I retire I'll most like be more in your camp. Finding a company who's board has compensation tied to having it's stock price go up, IMO is a good sign. Unfortunately most companies need to lure good people through big money, Options or a big compensation package. This whether the stock goes up or not. I'm guilty of buying many crappy stocks. When a price gets low enough. There's usually someone out there that's going to try and make a ROI. Many times through a stalking horse bid in chapter 11. I believe the jury is still out on SFM . The company has a new CEO. Many times I like buying companies up front, having good management, but many are not considered necessarily value investments. Forbes used to come out with a list of best run companies. I remember NATI being on the list quite a few times. I've owned it and paid up for it.. BRKS was an excellent example of a stock I owned that has excellent management and where management has executed,NVDA is another. Message 28434833 Message 27654046

To: Spekulatius who wrote (62220)	7/23/2019 1:56:14 PM
From: Paul Senior	Respond to of 78671

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.