Lessons from John Dorfman

John Dorfman has been writing a value-oriented stock market column for Bloomberg for nine years. Dorfman is an independent thinker and his columns have been a gold mine of original investment ideas. John is retiring as a Bloomberg columnist to devote full attention to his Boston investment firm, Thunderstorm Capital. I will miss reading his articles but I am sure he will prosper.

In his last column, Dorfman sums up what he has learned from nine years of intensive research of many investment strategies. I have extracted the first four points to preserve for posterity. They are deceptively simple, but I think they are extremely important:

One: Out-of-favor stocks are the best road to capital gains.
Two: Don’t be swayed by what Wall Street analysts say.
Three: High portfolio turnover is not necessary for good results.
Four: The investment value of a stock is independent of whether it has been moving up or down.

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One Response to “Lessons from John Dorfman”

  1. Sandra Solomon Says:

    What asset allocation do you recommend now with the market so volatile??? I’m 57 and semi retired with about 400k to invest….Where should I be?

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