Why this is a great time for value and innovation? Just go to any financial website
Loading ...It is in these challenging times that real innovation and wealth creation happens. All around is seemingly bad news from stock market losses to financial services write-offs and losses in balance sheets of large corporations.Personally for me these are good times for to invest in downturns always pays of multiples as long as you invest fundamentally.
The PEs of most companies are at historical lows with tough situations all around and yet fundamentals within these businesses look good, i.e. people, products, services and in some cases the business models. So this is a great time for investors, venture capitalists, entrepreneurs, customers and for people with their fundamentals strong. We are witnessing some real tectonic shifts and the next five to seven years should turn out to be pretty interesting from new business models to products, services and businesses that get created and destroyed.
Executives that stay focussed just from the next quarter results are obviously the most hurt and damaged, but business who are not distracted by what they tell their boards or the street, but more importantly what they tell themselves are the ones who will play out this challenging period well into the coming years. Almost the entire spectrum of tech companies are trading well below their numbers and this is true across the board.
Warren Buffet wrote the “Owners Manual” for their investors at Berkshire Hathaway and well it is simple, focussed and the results speak for themselves.
http://www.berkshirehathaway.com/ownman.pdf
http://finance.yahoo.com/q?s=BRK-A
So at the end of the day there are some very interesting companies out there that I am tracking and sure that most of them will move in the right direction if they stay focussed on fundamentals and avoid the distraction which is better at the Rio carnival! Have a nice week. 
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