The world continues to be captivated by the Olympic Games and its requisite fanfare. Competitors from all over the globe have assembled to reap the rewards of hard work, dedication, determination and sweat. In many ways, the Games are a metaphor for investing and the challenges (and rewards) it can present. In a recent article for The Globe and Mail, Validea CEO John Reese shares his insights on the parallels between the two.
While it’s a given that Olympic athletes start with natural talent, it’s not a distinction that gets them to the Games much less to the podium. Finding the right coach and heeding their advice is essential. Similarly, successful investors rarely launch themselves into the stock market without doing some solid preparation and availing themselves of the knowledge and wisdom of investing gurus such as Warren Buffett, Peter Lynch and Benjamin Graham. Resilience and discipline are the earmarks of a good investor, and the ability to adapt to an ever-changing environment can separate the winners from the losers. And, when emotions get heated, staying on track can help blaze a trail to the finish line.
Here are a few stock ideas that might make the cut:
Westinghouse Air Brake Technologies (WAB), a leading provider of technology to railways, gets high marks from our Buffett-based model for its consistent earnings and high return-on-capital.
Brunswick (BC), a $4.4 billion recreation products firm, is considered a “true stalwart” based on our Peter Lynch-inspired screen. This model likes the stock’s yield-adjusted price-earnings ratio of 0.93 and its reasonable debt-equity ratio.