This month marks the 25th anniversary of Kenneth Fisher’s Forbes magazine column, and in his latest piece Fisher offers his thoughts on what has changed — and what hasn’t — in terms of his portfolio management advice.
Among the principles Fisher says he still espouses:
- Avoid overpaying;
- Don’t just rely on the price/earnings ratio as a valuation metric; also look at the price/sales and price/book ratios;
- Compare companies both to the broader market and to their peers;
- Buy quality cheaply;
- Learn from your mistakes;
- Think politically, but unconventionally;
- Size matters — sometimes.
Among the principles that Fisher has changed or added over the years:
- A global focus is now needed, rather than the domestic tilt his column initially took;
- Originally, he says, he “thought Republican”. Now, he’s an “equal opportunity politician-hater”;
- There are times to go to cash, but they are rare. Usually, he says, “getting out is the bigger risk”.
Fisher also gives a handful of stocks he’s high on right now: Yanzhou Coal Mining (YZC), Suntech Power Holdings (STP), Votorantim Pulp & Paper (VCP), Infosys Technologies (INFY), Royal Caribbean Cruises (RCL), and Precision Cast Parts (PCP).