"You should buy quality names" like, should, really, names

brk1yn

Don't you love it when they say that?

I know what they mean... huddle under known brands, but do you ever hear them say "you should really get out there and buy low-quality names"?

There is the "Dogs of the Dow" strategy, which is sort of like that.

bkballa

This is equivalent to "the market's going down in the future, so if you have to be long today, switch low-beta stocks"? In that case the better advice is "go short"?

Or is it the same as "vol will continue to be high, and we assume you like a low-vol portfolio -- regardless of market direction"?

Are you watching TV again?

anish

I guess calling something a "cigar butt" is as close to calling it low quality as you can get. Actually, kind of worse.

I bought DLX below $10 a couple of years ago for yield and because it was trading at a ridiculous multiple. I would gladly concede it is a low quality name. I took a couple puffs on that nasty thing and sold it, admittedly too early.

kingstongal

Riffing on your 2): "The stock market can remain irrational longer than you can remain liquid"

joehogue

.



Edited 1 time(s). Last edit at Friday, August 5, 2011 at 06:59PM by Dwight.

dandman

bchadwick Wrote:

> Anyway, I coined a phrase today I intend to use
> for a while: "You have to remember two things
> about the stock market: 1) it's smarter than you
> are; and 2) it's dumber than you are."

And, sadly, it's always right...

sameeragarwal

Quality names usually means blue chips with a long history of dividends....think JNJ.

For Average Joe Investor's retirement account, makes sense really.



Edited 1 time(s). Last edit at Saturday, August 6, 2011 at 10:33AM by Palantir.

ASSet_MANagemen

My put options on BAC are deep in the money now. I'm actually thinking of buying call options if things keep getting worse. No way they'll let it get ripped under.