Mike Arnold
Long only, small-cap, tech, growth at reasonable price

Are Things That Bad At VeriFone?

Investing in turnaround stories is notoriously difficult to get right consistently. Not only does one have to have a unique insight into the turnaround, but it also has to nail the timing of the investment. Investors also need to be prepared for rapidly oscillating stock prices as the turnaround takes hold, or fails.

Warren Buffett advised against so-called "cigar butt" investing in favor of owning wonderful businesses at good prices. It is certainly easier to do better, consistently over time with best-in-class companies. However, if a stock price gets beat up enough, price may have well swooned far below underlying value.

Calling a bottom is not my intent, rather I try to find a bargain and have conviction by buying...

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