One of the reasons we love investing in the market is because it helps us become better thinkers. In our experience, sharpened thinking can come not just from improving the way you usually think, but from learning to think in new ways—to go beyond your comfort zone.
We often look at the list of top one-day decliners for investment ideas. That’s how we came across the idea for our post on Pharmacyclics (which has climbed over 40% since we wrote about it 3 weeks ago—that’s luck, not brains).
Yesterday, we went in the opposite direction and asked, “Is there anything we can learn from the top one day advancers? To our surprise, there was, and we asked in this post whether Overland Storage was still cheap, despite an 18% one-day jump.
We don’t put much faith in the usefulness of PEG ratios (price/earnings-to-growth rate) since the “G