The concerns which fail are those which have scattered their capital, which means that they have scattered their brains also. They have investments in this, or that, or the other, here, there and everywhere
Can we improve on the accuracy of these estimates by obtaining estimates from, say, 22 leading investment banks and averaging them?
On this basis it could be argued that, at that time, since expected returns were well below historic norms, prices were too high.
Too much of a good thing can be wonderful
So we search for those things that other people are selling and then if the problem or adverse outlook is temporary we buy them and hold them patiently for years until the public changes its mind.
A group with a high anchor were prepared to pay three times as much for the same wine as a group with a low anchor
What is worse, it directs the investor to a list of companies that may be completely out of tune with today’s economy
Inactivity strikes us as intelligent behavior
Clearly it is not a moaty Warren Buffett enterprise. But, over the next five years or so it has the potential to become one.
Stocks in highly cyclical industries have to be treated quite differently than other industries or sectors because of the cycles.