Sir John Templeton“To buy when others are despondently selling, and to sell when others are avidly buying, requires the greatest of fortitiude, and pays the greatest ultimate reward.” – Sir John Templeton

 

I would like to re-visit this quote, and this about which industries are being despondently sold in the current market.  Which are the industries and investors do not want to touch with a 10 foot pole?

 

Shipping Industry (CHINA SHIP DEV 中海發展股份 (01138.HK))

Steel Industry (MAANSHAN IRON 馬鞍山鋼鐵股份 (00323.HK))

Coal Industry (CHINA SHENHUA 中國神華 (01088.HK))

China Real Estate (R&F PROPERTIES 富力地產 (02777.HK))

China Bank Industry (ICBC 工商銀行 (01398.HK))

 

The first 2 companies are smaller, and probably more risky, but the bottom 3 is much more established and have a lower risk of downside volatility.  By definition, stocks can only be depressed if people are selling.  There is no other reason why a stock keeps dropping.

If the quality of the company is good, then perhaps fortitude is required to execute on the buying opportunity!

– Mr. Alpha

 

Picture from link: http://channerinvestment.com/blog/2009/11/warren-buffett-has-done-it-again/


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