What’s your investment approach?
My daughter climbed a mountain in Colorado last month. As she and her friends neared the summit, a mountain goat followed them. It hung around while they had lunch, and presumably had a nice little meal of its own on leftover crumbs and morsels when they left.
Normally you wouldn’t expect to find wildlife above 14 thousand feet, especially in the winter. There’s not a lot of grazing up there. But this animal had a strategy: be unconventional and go where it’s less crowded. The goat had learned that hikers bring food, and pose little danger.
Investors can learn something here. If you keep to the well-travelled valleys, you may be safe, but there’s a lot of competition. It’s hard to find undervalued issues among the marquee names we read about in the paper every day. On a practical basis, many of those companies are so big it’s impossible for them to grow faster than the overall economy.
But if we’re willing venture out, there are some good deals to be had. By examining company financials and market data—following the hikers—we can earn significant returns without a lot more risk.
Douglas R. Tengdin, CFA
Chief Investment Officer
Leave a comment if you have any questions—I read them all!