Whitney Tilson's : Be ready to act when market opens a door to opportunity

Whitney TilsonThis is Whitney Tilson's latest article on FT's Inside Curve column. I highlight some Tilson's points :

  • It’s human nature: for most investors, the pain of stocks going down is more tangible than the joy of when they go up. The common impulse is to do something – anything – to minimise the pain.
  • More volatility equals cheaper stocks, which equals higher returns.
  • Successful value investors work hard to position themselves and their portfolios to capitalise on just such turbulent times. In essence, they do their worrying well in advance of market turmoil, not after it starts to happen.
  • To begin our search, we asked ourselves: what’s the most despised sector in the stock market today? The clear answer: financial companies in general, especially those with exposure to structured finance and/or subprime.
  • Keep a close eye on stocks you like and be ready to act with conviction when Mr Market opens the door to opportunity – it may not stay open long.
Full Article Link - Whitney Tilson: Be ready to act when market opens a door to opportunity.

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