(Please click on the above picture to get a clearer view... It details what, as investors, we should all be focused on... The main reason why staying invested in a portfolio of good quality companies is paramount to capturing this once in a life time opportunity.)
A quick blurb on Professional Active Management:
We're entering a great time for those of us who believe in active management. We will have the opportunity to acquire great businesses at historically low valuations. Mr. Buffett made his career from 1973 to 1975 because at that time picking grossly undervalued businesses was like shooting fish in a barrel. (OF course, this time the barrel is much larger, and finding the highest quality fish that much trickier.)
Successful investing through this near-term market volatility calls for tactical asset management. As the pace of creative destruction accelerates, it's important to own industry leaders with very strong balance sheets: The strong will get stronger, the weak will get weaker.
Pertinent Closing Thoughts (Bill Gross)
In a sense, we are all children of the bull market, although some of us are more mature than others – a bull market of free-enterprise productivity and innovation, yes, but one fostered by a bull market in leverage, deregulation and globalization that proved unsustainable in its excesses. We now must view ourselves as chastened adults, forced into acknowledging a new reality that is dependent upon bear-market delevering and debt liquidation to deliver us to our new and ultimate restructured destination – wherever it lies. Thus, while historians might describe these years as an evolution, for those of us living it day-by-day it most assuredly has the feel of a revolution. Much like Irving Fisher’s “permanently higher plateau” of prosperity that was quickly turned on its head in 1929, those who would forecast a “permanently lower valley” of despair might similarly be off the mark. Yet there should be no doubt that the bull markets as we’ve known them are over and that the revolution is on. Investing is no longer child’s play.
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