Homepage
PR Newswire
hi i4value,
I agree with you that good companies (not companies that give good news) ain't cheap. Sometimes, when we are only willing to pay peanuts, we get monkeys. But of course, some of these monkeys turn out great when they "turned around".
But like you said, most don't and so "turnarounds" are rare. So when they do happen on the investor's watch, it gives a great psychological boost to his/her psyche. Because they are rare in nature, the odds are against the average investor. But even great investors have lost big in retail turnarounds though - Bill Ackman has probably lost at least a billion investing in turnarounds for retailers like Target, Borders and JC Penney. The venerable Tan Teng Boo of iCapital fame of Msia has also lost big (for his closed end fund) in Parkson Retail.
Somehow I find these losses fascinating from a psychological standpoint - Is it because they were hoping for that psychological boost of been right? Is it because those brands were once venerable when they were in their formative years and hence they would feel GREAT if they witnessed/played a hand in their turnarounds?
I agree with you that good companies (not companies that give good news) ain't cheap. Sometimes, when we are only willing to pay peanuts, we get monkeys. But of course, some of these monkeys turn out great when they "turned around".
But like you said, most don't and so "turnarounds" are rare. So when they do happen on the investor's watch, it gives a great psychological boost to his/her psyche. Because they are rare in nature, the odds are against the average investor. But even great investors have lost big in retail turnarounds though - Bill Ackman has probably lost at least a billion investing in turnarounds for retailers like Target, Borders and JC Penney. The venerable Tan Teng Boo of iCapital fame of Msia has also lost big (for his closed end fund) in Parkson Retail.
Somehow I find these losses fascinating from a psychological standpoint - Is it because they were hoping for that psychological boost of been right? Is it because those brands were once venerable when they were in their formative years and hence they would feel GREAT if they witnessed/played a hand in their turnarounds?