|
Vinvesting.com is the leading social networking site for value investors where you can get the latest investment ideas, insights and interviews from great investors like Warren Buffett, Templeton etc. Over the last 70 years, value stocks clocked a 13.4% average annual return, vs. 10.2% for growth stocks, according to Ibbotson Associates. |
George Putnam : Calling brave investors
Submitted on 04/04/2008
When it comes to investing in individual stocks, contrarian analysis sounds perfectly reasonable -- in theory. What could be more sensible than Nathan Rothschild's famous line that, "The time to buy is when the blood is running in the streets"? After all, if you wait to buy a stock until the news is all good, then its price will already have been bid way up and have relatively little further upside potential.
Putnam writes that "the airline stocks look awfully cheap to us right now."
Putnam uses this "it is bad, but not that bad" argument to respond to those who believe that a recession is a reason to avoid airline stocks, for example. "While it is true that travel expenditures are somewhat related to the overall economy, the major airlines are in much better shape this time around compared to past downturns," he writes.
»
Post new comment