Guest JoelS Posted April 4, 2017 Share Posted April 4, 2017 Hi All, A study of the great corrections tends to lead towards a theory that holding quality stocks late into a bull market is a reasonable strategy. Some would say, buy cheap, hold and let reversion to value happen without interference - but.. as Graham advised, "The chief losses to investors come from purchases of low quality securities at times of favourable business conditions." I do not want to say in 5 years, I wish I had not held so and so stock... So I am looking to eliminate low quality and progressively shift up the quality curve. Wouldn't it have been nice to own McDonalds in 2008, or Fairfax for that matter. I put forward that some companies (prior to GFC) offered an investor downside protection without compromising too much on upside.. just the knowledge that your company would make it out the other side of the Great Recession would, I think, give one a huge advantage, emotionally and financially. With this background in mind, are there any companies you hold or think of as having equally defensible characteristics today? Looking for a combination of fair price and quality. I will offer three (and admit that I am not 100% sure on any of them): Brown-Forman: lovers of whiskey cannot do without their Jack Daniels. Charter Communications: most people today cannot go without the Internet. Berkshire: for reasons we are all probably familiar with. Link to comment Share on other sites More sharing options...
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