Are Some Stocks Cheap? Yeah. Could They Get A Lot Cheaper Still? Oh, Yeah

I think that's the dilemma stock investors face right now. And I believe which path you follow -- to buy, hold or sell if you've already bought -- should be dictated by how long your time horizon is.

The fact is, anyone who bought stocks in the last year or two thinking they were "long-term investors" -- but has the urge to sell their equities now -- was a pretender. If you and I can't stand up against these headwinds, we shouldn't own stocks in any market. But I can and, if you're a regular reader around these parts, you can, too.

My hunch is that oh, say, two years from now we'll be glad we stuck it out. There are cheap stocks out there, though I'd stay away from banks for now. Just know that we could easily see equities get even cheaper in the future. Take it from a guy who knows -- since I like some stocks that are currently underwater for me.

And speaking of bargain stocks, Morningstar in Canada touches base with Wade Burton, a portfolio manager with Cundill. His fund has been lagging, like most value managers. Of the stocks he talks about, one is Fairfax Financial (FFH/NYSE). I like Prem Watsa and the company, but as I repeatedly remind you I've sold enough Fairfax to get my original capital out, so the company is a free ride for me. The other stock Burton discusses is Loblaw, a grocer trading in Canada, which I'm not familiar with.

Another interesting part of the article isn't about investing. But is about Burton investing in himself. He contacted Peter Cundill about coming on-board:

Burton offered his services free of charge, as a way to get his foot in the door, and Cundill took him up on the offer. After a four-month apprenticeship, and earning a small stipend to cover his expenses, Burton was hired in March 2000.

Hats off to the guy for having the spunk to do that. I'm sure he learned stuff in those four months he'll carry with him the rest of his professional life.

Comments

[Bootstrap]

Hi,

Thanks for all the posts - particularly the ones that encourage us to remember that profits are made when investing in times of fear (we just may not realize it until later). I've always enjoyed your blog and you have inspired me to start one of my own!

Thanks again.

[John]

Bootstrap: Thanks for the kind words and good luck with your blog.