Nothing is more detrimental to the long-term viability of an investment theme than its own success.  In the often circular logic that defines the market, profitable trades can only remain so as long as they are unpopular.  Once they are embraced by the investing public, prices have generally risen to a point that would make...Read More

Last week, I took a look at how the “Investing All-Stars” were positioning themselves for the remainder of 2012. Then—as now—the Eurozone crisis hung over the capital markets like the proverbial Sword of Damocles.  Given the difficulty of investing under this kind of uncertainty, I thought it would be beneficial to peek over the shoulders...Read More

The Greek election came and went without much in the way of market reaction.  It would appear that “Mr. Market” is tired of hearing about Greece and has now moved across the Mediterranean to Spain. But for all the wailing and gnashing of teeth over the country’s finances, even Spain is a relatively minor problem...Read More

Question: When looking at cheaply-priced stocks, how do you know which ones are solid value stocks and which ones are dreaded value traps? Answer: The value stocks eventually recover, whereas the value traps do not. I realize that my answer is no more useful than Will Rogers’ advice to “Buy stocks that go up; if...Read More

I’ll let you in on a little secret, dear reader. In those moments when I have doubts, I like to look over the shoulders of great investors to see what they are doing. (Actually, it’s really not much of a secret. It’s a topic I discuss quite openly and frequently. See “When in Doubt, Follow...Read More