I get a kick out of identifying and buying Warren Buffet type stocks at the right price and time, usually after a short term reduction in share price. I don’t buy them unless I have seriously researched each stock and written down my reasoning and produced a financial projection. But these stocks are few and far between and finding them is hard so I‘m always on the lookout for inspiration. As such, here’s some other blogs and web sites that can help us all identify Warren Buffet style movers and shakers.
Fool.com – The Motley Fool
Let me firstly say, I think the fool.com is great as a concept and that there is a wealth of information on the website to help the novice investor. But it’s no holy grail. The members are generally knowledgeable and helpful but there’s so many different opinions that it hinders investors creating their own style. My comments below are limited to the UK site and is aimed to help the fools think about what they do, not just follow the herd.
I must apologize for mentioning fool.com as their discussion board has a fatal flaw - numerous fools contribute! The fools are sometimes condescending, self righteous and possess a sheep like, herd mentality. I posted my view of RC Group and I got a reply from some fool herder called LilPetitFou, stating he didn’t like the ‘smell’ of the stock. I want facts not smells. He did provide his reasons, such as spread and liquidity, but the only point he made about the actual company, was regurgitating a point I’d made before. Needless to say, his flock mostly agreed with him and voted for his post, with 7 votes to my 2. So, I lost the popularity contest but I am making the money. Now, who said that ‘a popularity poll isn’t a substitute for thought and analysis’? Yes, Warren Buffet.
I subscribed to their newsletter called Champion Shares edited by Maynard Paton and the picks looked dire. I couldn’t find any convincing reasons to own any of his recommended stocks. I’m sure Maynard meant well but I felt I was basically buying advice on how to lose money. His stock picks had a pretty bad track record when I looked, and most decent companies were already at the top end of their industries price to earning ratio. One of his tips was a rail maintenance company as a turnaround opportunity. Well it didn’t turnaround, at least so far. Let me know if his record improves. At least he’s man enough to admit underperformance. Unfortunately, one big in built handicap most of these stock picking newsletters have is that they feel compelled to recommend stocks each and every month. Even Warren Buffet says that he’s happy if he finds one good investment per year.
http://www.advfn.co.uk/ A site with a discussion forum. http://www.gannononinvesting.com/ A very well written and thought out blog focusing on value investing mainly on US based stocks. He also has a premium newsletter.