Blog Post

I know I haven't yet finished the Navistar post.  I'm working on it.  I thought I'd take a minute to discuss my investment philosophy.  I most believe in value investing and I am somewhat naturally a contrarian.  I think I'm a rational contrarian and not a contrarian who is a contrarian simply to be a contrarian.  How's that for a tongue twister!

The portfolio that this site is tracking is a short-term money making portfolio and not a value portfolio. I think value investing is the most efficient investing method.  But, it does require time.  Something I don't have the luxury of at the moment.  This portfolio is enabling me to pay for grad school.  So my needs are more immediate.  Value investing requires that you find stocks that you believe to be undervalued and depend on the market at some point recognizing the true value - requiring time.  It is the first type of investing that I was exposed to.  When I was in high school, I read a book on Warren Buffett.  The book had a great effect on me and after that I read a book by Benjamin Graham and then a book by Phil Fisher. 

Warren Buffett is not just an extraordinary investor but also highly ethical as well. I love the combination.  I'm digressing, but those books taken together describe a value investing approach to investing.  Over long periods of time, I believe value investing to be superior.  Of course here I'm not dealing with long periods of time. 

I also am a firm believer in a long-short approach.  That is of course represented in this portfolio.  I have been successful with this approach.   Not as successful as I could be due to the administrative risks discussed in a  prior post.  But, you'll notice the shorts have been very good for the portfolio in this environment.