Investing Against the Tide

chapter 10

My favourite type of share

‘The heart of my approach has been buying recovery or turnaround stocks on attractive valuations’

 

‘We average down relentlessly. Two things seem pretty clear to me: first, no one can consistently buy at the low or sell at the high (except liars, as Bernard Baruch said), and second, lowest average cost wins. We constantly strive to lower the average cost of our positions by buying more if and when the price drops’

Bill Miller

At the heart of my approach, particularly in the Special Situations Fund, has been buying recovery or turnround stocks on attractive valuations. These are normally businesses that have been doing poorly, perhaps for some time. Many investors, in my experience, don’t like to be ...