How I Invest
Over the years I have become a big fan of the value philosophy. As I see it, most of the greatest investors of all time have been long-term investors, and the majority of such investors have subscribed to the value approach. As I've famously said before, "Patience is a virtue."
I tend to agree with the more liberal definition of value, in that I believe companies with high P/E multiples and a "momentum" label can still be ripe picking for the value investor, should he/she be sure (or nearly sure, I should say) that the company remains undervalued. Having an appropriate margin of safety in this situation is always necessary.
At the same time, I realize that keeping an eye on growth, momentum, and to some extent on the basis of technical indicators (mostly volume), can be useful and may allow for an investor to bail before his/her shares tank, in a situation where a buy-and-hold investor could be taken to the cleaners.
In a word, my investment philosophy can be described as Motley. In more than a word, my philosophy boils down to doing quality research on a company, knowing its products and services (usually because I've used them), and only investing in its common stock when very confident that the market price is far below its intrinsic value.
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