Opinion Piece: By Jonathan Primo Fuego Galicia, CFO
Bargain Hunting during the COVID-19 shutdown is something most Sophisticated Investors are embracing as we continue social distancing. Bargain portfolio asset hunters are few and far between the typical market investor. I draw an imaginary line in my mind that represents the trade-off between quality and price; most investors find themselves creeping toward quality. Accepting a higher trading price in return for greater certainty and a false sense of peace. There is nothing wrong with such a transformation. Warren Buffett, who lives right here in the same city as me, has famously undergone the same shift in his investment approach. That said, he has hinted that the change was partly motivated by the mushrooming of his investable assets.
I have several colleagues who are very happy to overpay for assets that are in fashion. Today, one of my associates called me to see if he could stop by my office. He wanted my opinion on his stock portfolio. After a quick look, I handed him a picture of a dandelion balloon. He asked what my thoughts were on his portfolio. I then said, “INTERESTING!” He said, what is interesting? I find it interesting that you are seeking an opinion while your ballon is deflating, instead of seeking advice!