Chipstocktrader

Financial Sector Shows Flickering Improvement

In this one particular case I have to agree with Mr. Kelly. I have done unreasonably well by buying good stocks when no one wanted them. When to sell - of course - is another problem, but buying - I think not. The hallmarks - as Mr. Kelly elucidated - are fairly clear. Especially if you are willing to buy over a span of time.

I once read this missive by a very wise investment manager in Dallas, TX who had made double digit returns for his customers over a 35 year span (before he retired last year). His sentiments have always stuck with me: "Times of great uncertainty present the greatest opportunity to purchase stocks below their intrinsic value. This pattern has repeated itself so many times we believe it to be axiomatic." (Arnold Van Den Berg, Century Management, Dallas, TX)"

And so I own KCAP at 11.47, and AFN at 2.42 (and bought more today of both); And Citi (C) at 18 and 20, and BAC at 33 etc; and I own lots and lots of semiconductors -especially the ones whose management see no bottom to their abyss and doesn't know when it will ever get better. Every time they said that before, I made triple-digit gains the next year. Human nature is structured to be most wrong whenever it is closest in time to the news-influencing events that rule markets.

One might pose the question, "Will human nature be different this time around". I think not. It worked OK for Shakespeare and it's still working OK for me.