
This forces him to know all the companies he buys very well. He attends their meetings, reads trade journals, and knows his companies better than the sell-side analysts. Sounds like a pot-shot at sell-side analysts; how does he know how much they know? Well Greenberg started out as one in 1973.
Following a brief elementary and highschool teaching career, Greenberg completed his MBA at Columbia and joined JP Morgan as an analyst. Greenberg saw first-hand the follies of the industry, as his firm could not buy enough Avon or Polaroid shares, despite the fact that they were trading at over 100 times earnings!
Needless to say, the Dow Jones declined 40% over the next two years. These events laid the foundations for Greenberg to be skeptical of prevailing wisdom and to make sure he understands a company extremely before he buys an individual stock. Keeping his portfolio at between 8-10 companies allows him to do just that.
3 comments:
Thanks a lot for this article. Do you know the name of Greenberg's fund?
Thanks!
Online Dividends
Hi Online,
If I'm not mistaken, it's called Chieftain Capital Management.
-Saj
and how is he doing in this market.....with all of his eggs in one basket!
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