Hot off the presses from our very own Doug Kass.
-- Lt. Columbo
I wanted to make one final comment today.
If you look at my Best Ideas List, you'll see that I'm short a number of very popular stocks that the herd loves to love. These stocks are typically heavily owned by the largest institutions and money managers, and are more often than not widely regarded by Wall Street analysts.
However, my analysis is often contrary to conventional thought and wisdom -- it has been the case for decades. I might be wrong (I often am), but I always try to present you with a differing, contrary view, with transparency and hard-hitting analytical substance. I always let subscribers weigh my independent view and draw their own conclusions.
By contrast, consensus thinkers, like the commentators I mentioned Thursday in When He Goes Low, I Go High, often delight in nonrigorous criticism of some of my most popular short ideas. But they all too often do this having never even looked at a company's balance sheet or income statement. Starbucks (SBUX) and Amazon (AMZN) come to mind, but I've had many other calls that fit this categorization both in the present and the past.
More often than not, the crowd is right. But especially at times when markets are inflated, you should see the crowd as "first-level" thinkers whose herd-like mentality is sometimes painfully wrong. They're not, as Howard Marks reminds us, "second-level" thinkers.
I don't aim to gain notoriety by calling a top to a popular stock. Instead, I try to question convention wisdom and market bias for the purpose of helping you trade and invest profitably.
With that, enjoy your evening -- and as always, thanks for reading my diary.
I am still on the Twitter (TWTR) conference call, and I will have more details later.
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- How Kass is not a contrarian just to be contrary.
- How Kass is being patient with Twitter.
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