You may not know Bruce Sherman, but his Private Capital Management manages more than $31 billion in separate accounts, returned more than 20% annually (in average) during the last 10 years. Once a CPA, Bruce Sherman is good at calculating the intrinsic value of stocks. But he is not investing in the best performing sector – energy. He said that “any valid cash flow analysis of a commodity-based business requires strong conviction regarding the long term price of the underlying commodity.” He believes that “oil prices have reached a threshold that is beginning to modify consumer behavior both at the pumps and at the automobile dealership, as evidenced by the recent sharp decline in sport utility vehicle sales”.
http://www.private-cap.com/pdf/PCM_3rd_Quarter_2005_Report.pdf
http://www.private-cap.com/pdf/PCM_3rd_Quarter_2005_Report.pdf
