During his recent interview with The Business Brew, Tom Gayner discussed finding bargains on the new high/new low lists. Here’s an excerpt from the interview:
Q4 2022 hedge fund letters, conferences and more
Gayner: Let me clarify. So that new high and new low list statement, what I said was, in my earlier life I used to read the new low list first. And then I would read the new high list.
And part of my thinking there was if it was something I already owned and it was making a new high, I probably knew that without even looking at the list, because you’d be aware of it just from the smug feeling of self satisfaction one has from owning the stock to setting a new high.
Along the way, and this was a process over time, it came to be that something that is making a new high, maybe, maybe, something good is going on there in an underlying fashion.
And if I didn’t own the stock such that I wasn’t kind of focused on the new high list, well that’s a pretty good place to look for companies that are doing well.
And then you can make a decision, look, is this just a trading move? Is this cyclical? Or, wow, is this a company that really has proven its expertise and should be celebrated and bought more of?
You can listen to the entire discussion here:
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Article by The Acquirer’s Multiple.
