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| quote: | Originally posted by atbell
The problem with fundamentals is if the market saggs everything gets hit. Or, to say it differently, if the fundamentals of the US economy are weak (which I think they are) all of the stocks suffer.
My top 4 picks are ones that don't have many ties to the US economy. RTP (Rio Tinto), Microsoft, BHP Bilton, and (for shame) Haliburton are all performing well. I think it's because thier sucess is based on the performance of the world not simply the US.
BAM (Brookfeild asset management) is still dragging me down but I have faith that thier holdings are profitable and that the management is competent.
Completely clueless about why RDS.B (Shell) and BP (BP) are doing so badly. I must have bought them at a high. |
I find myself in the same boat. My multinational foreign stocks are outperforming US stocks.
But in regards to the fundamentals. You know my mantra is follow the fundamentals. If the market falls, GREAT! That's good. It's the time to buy. It's a Christmas sale everytime there is correction. Like with the correction of the last two weeks. It's basically Christmas shopping in my book.
So if you have a fundamentally great stock, and the market drags it down. Buy more. Use "dollar cost averaging" and your losses will be averaged out. Who cares what the market is doing!! Bottom-up analysis is what I do. Forget about the rest of the market. They are your competitors!! Don't do what your competitors do or you'll lose. Start your analysis at the business level on up. If you buy an excellent business like microsoft or wal-mart and hold them, buying on the market downturns, you will compound your investment until your head explodes, you'll make a gazillion bucks!!
I stress having quality companies though, or the system won't work. Looking at credit ratings helps a lot and also knowing the fundamental strength and gamma metrics. I can tell you the FS and gamma of any stocks you want and explain what it all means.
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