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Ronald Muhlenkamp: Looking for a Rich Harvest? Plant in the Growing Season
Posted by: gurufocus (IP Logged)
Date: June 1, 2006 09:53PM

Investors cite many reasons for favoring a particular class of investment, but the most common is simply, "It has done so well." The unspoken assumption is that it will continue to do well. Investors aren't alone in this line of reasoning. The media, too, tends to focus on recent price trends to extrapolate future performance.

In the past few years, small-cap and foreign stocks (especially emerging markets) have performed very well, drawing the media's attention and the public's money. Money flows into mutual funds show that people are investing heavily in small caps and emerging securities; recent flows into foreign and international funds have outpaced flows into domestic funds.

We think extrapolating price trends into the future is likely to lead to poor investment results. Investing in a market sector simply because "it's done so well" is like choosing to plant corn in October because your neighbor's corn has grown so well since April.

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Guru Discussed: Ronald Muhlenkamp: Current Portfolio, Stock Picks
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Re: Ronald Muhlenkamp: Looking for a Rich Harvest? Plant in the Growing Season
Posted by: vooch (IP Logged)
Date: June 1, 2006 10:51PM

Awesome article! No wonder he's my #2 hero per: [www.gurufocus.com]

I definately need to buy his book sometime.

- Vooch



Guru Discussed: Ronald Muhlenkamp: Current Portfolio, Stock Picks
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Rating: 5.0/5 (1 vote)



Re: Ronald Muhlenkamp: Looking for a Rich Harvest? Plant in the Growing Season
Posted by: vooch (IP Logged)
Date: June 2, 2006 08:48PM

Well, I got around to buying Ron Muhlenkamp's "Harvesting Profits on Wall Street". I also picked up Phil Town's "Rule #1", and the audio CD of Robert Hagstrom's "The Warren Buffett Way".

- Vooch



Guru Discussed: Ronald Muhlenkamp: Current Portfolio, Stock Picks
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Re: Ronald Muhlenkamp: Looking for a Rich Harvest? Plant in the Growing Season
Posted by: Krishna (IP Logged)
Date: June 4, 2006 07:17PM

Very sensible and stated the fact. More articles like this will bring a growing awareness of what had happened earlier, the dilemma which we are in and what to expect.



Guru Discussed: Ronald Muhlenkamp: Current Portfolio, Stock Picks
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