GuruFocus guru, legendary investor Martin Whitman comment on his holdings
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General markets tend to come back strongly in periods subsequent to price crashes! That was thecase in 1932, 1937, 1962, 1974 - 75, 1980 - 1982, 1987 and 2001 – 2002. A comeback also seems likelyafter the unprecedented crash of 2007-2008.
However, common sense indicates that three types of common stocks are unlikely to participate to any extent, in any price comeback. First, there are issues which were grossly overpriced prior to the 2007-2008 meltdown. Second, are the common stock issues of companies which suffered permanent impairments. Third, are the common stock issues which were subject to massive dilution during the meltdown where old common stockholders were unable to protect themselves from the dilution.
None of such common stocks which are poor candidates to participate in a market comeback are owned by the Fund...
Click to read the complete commentary.
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General markets tend to come back strongly in periods subsequent to price crashes! That was thecase in 1932, 1937, 1962, 1974 - 75, 1980 - 1982, 1987 and 2001 – 2002. A comeback also seems likelyafter the unprecedented crash of 2007-2008.
However, common sense indicates that three types of common stocks are unlikely to participate to any extent, in any price comeback. First, there are issues which were grossly overpriced prior to the 2007-2008 meltdown. Second, are the common stock issues of companies which suffered permanent impairments. Third, are the common stock issues which were subject to massive dilution during the meltdown where old common stockholders were unable to protect themselves from the dilution.
None of such common stocks which are poor candidates to participate in a market comeback are owned by the Fund...
Click to read the complete commentary.
