John Rogers: Doubling Down On Industrials

John Rogers: Doubling Down On Industrials by John Rogers, Forbes

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There are some businesses I might never really understand, which doesn’t bother me at all. Some companies seem too complicated or overly risky, or operate in industries where it is tough to get an edge. On the other hand, when I am interested in an area, I seek to know everything about it. Therefore, when I know an industry well, I feel confident when valuations get cheap. Moreover, my conviction actually goes up when familiar stocks go down–so long as their fundamentals look solid. When that happens, building bigger positions becomes easier, a wonderful formula for maximizing returns.

For instance, specialized industrial companies fall within my circle...