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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?


To: Jurgis Bekepuris who wrote (56692)1/18/2016 8:18:03 PM
From: Spekulatius  Read Replies (1) | Respond to of 69205
 
The stock picking part is definitely more interesting than the macro part. I do think it is interesting what these guys are thinking in terms of macro, since they represent the big houses somewhat.

Other than that, I agree with buying when a stock appears to be cheap. However, I also try to take into account what the macro could look like and what it means for certain sectors. Value investors always seem to underestimate the headwinds that a bad macro (or micro) can create for a certain industry. For example, I thought that VALE @$15 looked really cheap, as it was close to book and has some of the lowest costs in the industry. But with Brazil and Iron ore prices going to the toilet simultaneously, the stock easily hits $2 and I am not sure it's attractive here. A very small position only, but still. Mistakes can get costly....