I often wonder whether the goal of optimization (as referenced in the Cerrone quote) is likely to be a net positive or a net negative over the long run (see Lynch on watering the weeds). Of course, the alternative suggests an approach that seems sacrilegious to the traditional value investor, and fairly so. They are skeptical of the argument that a company has "earned the right to stay in the portfolio." Like yourself, I think that idea has merit. My conclusion is there's more than one way to play the game.
Great post, thanks for sharing Michael.
I often wonder whether the goal of optimization (as referenced in the Cerrone quote) is likely to be a net positive or a net negative over the long run (see Lynch on watering the weeds). Of course, the alternative suggests an approach that seems sacrilegious to the traditional value investor, and fairly so. They are skeptical of the argument that a company has "earned the right to stay in the portfolio." Like yourself, I think that idea has merit. My conclusion is there's more than one way to play the game.
Thanks again!
Thanks for sharing, great work Michael!
Here I have mentioned your post:
https://tinyurl.com/3yvdzscx