An article in the Wall Street Journal makes interesting reading.
[As an aside: how do I reach these articles? I subscribe to a number of RSS feed from blogs on investing / trading. The blog posts refer to mny external inputs which lead me to such articles...]
The author says "Last week I was in London, visiting one of the best investors I have ever known. Peter handles money on behalf of a small number of rich clients.
He shuns publicity (and requests that I don't mention his last name). He's been managing money for 40 years. Ten years ago he told me to sell the Nasdaq and buy gold.
Over dinner, as he reflected on a long career, he told me that as he has gotten older he has learned that good investing is even simpler than he used to think. He has abandoned most of the sophisticated tricks he tried to use as a young man. He sticks to value, and he runs against the herd.
Right now? He likes some blue-chip stocks, as they are reasonably cheap and no one else seems to be interested in them. He's avoiding fashionable emerging markets. And he's been quietly building a position in Japan. Why? "Everybody hates it," he says. "Twenty-year bear market. It's cheap. And your typical fund manager would rather suck a lemon than invest in Japan."
Most people's reaction to this is probably to shrug and forget about it. Japan is so over, after all. Why would you want to invest in Japan? Nobody wants Japan.
End of Quote
Last year, at the beginning of the bull market, I started talking about PSU Banks. It was quite unfashionable. But events have justified this view. Now, everybody is talking about PSU Banks. Hmmm.