Two Smaller Caps That Gurus Would Appreciate
John Reese submits:
While many investors — including John Paulson and George Soros — have been keying on gold lately, Kenneth Fisher recently offered some words of caution to investors looking to ride the gold wave. In his latest Forbes column, Fisher says that while gold has averaged annual returns of about 7.1% since the downfall of the Bretton Woods exchange-rate system 37 years ago, the gains have come in bursts – gold has gained ground in just 66 of the 433 months in that period. So, "if you aren’t an exquisite timer, or very lucky, gold isn’t a great place to aim your money," he warns.
Instead, Fisher says he is currently targeting stocks of firms with good growth potential. I think he’s wise to do so, and I recently came across two such stocks — thanks in part to the ‘Guru Strategy’ I base on Fisher’s early writings. (Each of my Guru Strategies is based on the approach of a different investing great. Developed after extensive historical testing, the alerts are issued when my models detect a series of high-conviction buy signals that, when previously reached by individual stocks, have tended to be followed by strong performance.)
Investing, Long Term Investment, stock market | admin March 19, 2010
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