The Cat’s Guide to Bottom Fishing
Have you ever seen a cat’s pupils burst before it lunges for its prey?
Like a master martial artist, cats save up all of their energy for the moment they will need it most.
Most of a cat’s day is spent sleeping, lounging around, or just being plain lazy. But when it comes to the crucial time that determines whether they will catch their prey or go hungry, cats are ready to pounce – anytime, and from anywhere.
Investors can has good dealz?
If you’re looking for the best deals possible, it’s good to be in the mindset of a cat. This is because most deals that come along are mediocre.
You need to be patient and only willing to leap at a real deal.
Cats understand this instinctively – they are disinterested in most things around them. It’s only when a tasty treat appears that a cat will sit up and take notice.
Cats are only interested in the best
A cat can fish out a fresh treat from even the slimiest of fishbowls. So while you may be digging in the darkest corners of the markets, don’t settle for an investment that is about to turn bad.
This means staying away from apparently cheap investments that have negative free cash flows, spurning the companies likely to drown in the popping of Wall Street’s newest bubble, and avoiding one-product-fads that make a company seem far cheaper than it really is.
Instead, look for those investments that have been beaten down well below any reasonable calculation of intrinsic value.
Make the leap
Ever notice how a cat is brave enough to leap from almost anywhere to get to its intended target?
You can do the same. If there is a compelling deal available, you should do what is necessary to make it part of your focused portfolio.
But before you do, make sure you’ve meticulously scoped out your prey. Otherwise, you might be the one bitten.
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