Thursday, February 27, 2014

Bad earnings create opportunities

It's always painful to see more bad news about companies with good fundamentals, such as BP or JP Morgan.  The key is to find the value.  Is the issue limited to that year or that quarter?  (e.g. such as government fines)

What I avoid:

  • Airlines

What I like:

  • Banks with good fundamentals
  • Beaten up energy companies with good fundamentals

This is why I'm buying more BP and JP.