Saturday, 28 March 2015

The Bearish Investor

A bear market generally connotes depressed investment market conditions. With bearish market conditions, every investment opportunity requires due diligence and close scrutiny before investment capital can be deployed and allocated.

I would suggest that a bearish market begets a "bearish" investor. This is the time for the bearish investor to make a move on strong companies at depressed prices with value at the front of his mind.

During a bear market it is the enduring companies that should catch your eyes. Men will still want to shave and drink beer, so the economy will not die. The suppliers of the essential products will not disappear overnight, and while it will not be business as usual it will be business by all means necessary. Big business have to survive like a bear in the salmon season.

The bearish investor must deploy his capital in all streams of profitable cash generating businesses while at the same time exercising every caution to prevent permanent loss of capital.

An investment checklist is important to assist in the deployment of the bearish investor's capital.

The Bearish Investor Checklist

  1. A company with a strong balance sheet is a start
  2. A company with enduring leadership in its industry
  3. A company that is isolated from the antics of wall street
  4. A company that is constantly growing shareholder value and
  5. A company with honest stewardship.
Focus InSight: A bearish investor copies the ways of a bear in salmon season.

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