As a Graham-and-Dodd value investor for many years, I aim to combine the methods of deep value investing and behavioral finance to identify mispriced securities while remaining alert to sources of macroeconomic risk. I believe periods of market instability such as today can be a great source of opportunity, setting the stage for value investors to strongly outperform through a hedged portfolio combining long positions in deeply undervalued stocks with solid balance sheets and carefully chosen short or put option positions against overvalued and overleveraged firms.
In the early 1990s, during the middle of a secular bull market, I began work on "A Modern Approach To Graham and Dodd Investing," that was not particularly suited for the decade of the 1990s, but was ideally suited for the following "Lost Decade" of the 2000s.
Daniel Cross, ChFC has been a freelance writer since 2005 with a focus on financial and economic articles. He has been featured in publications such as Investopedia, eHow Money, Morningstar, and more. He was former Editor-in-Chief of a small internal corporate newsletter for State Farm as well as a staff writer for "theSOurce," a company-wide newsletter for Florida Blue. He has also had experience in copywriting and writing white papers for the financial services industry.
Follow me on Twitter! @DRCrossChFC