Tilson & Heins on Shorting Opportunities

In their latest Discovering Value column for Kiplinger’s, Whitney Tilson and John Heins discuss the ins and outs of short-selling, and offer some insight into where they are currently focusing their short-selling efforts. Tilson and Heins say they are value investors, and in choosing their long positions they take a classic value approach. But while short-selling has many pitfalls (and has gotten some major criticism in recent years), they say they incorporate it into their overall approach for two main reasons. “The first is simple,” they write. “We believe it’s a moneymaking opportunity. The market often overvalues certain companies, and […]

Tilson & Heins Play Defense

In their latest “Discovering Value” column for Kiplinger’s, Whitney Tilson and John Heins say they are “playing defense” as the U.S. and world continue to deal with the fallout from the “bursting of the greatest bubble in history”. “As Americans, we’re hoping for a sharp, V-shaped economic recovery. But as investors, we’re not betting on it,” Tilson and Heins write, pointing to housing as their greatest concern. It will take “forceful action” by both the government and banks to avoid another downturn in the housing market, they say. Tilson and Heins say they are doing two main things to play […]

Tilson & Heins on How the Mighty Fall

At the heart of good stocks are good companies, and in their latest Kiplinger’s column Whitney Tilson and John Heins offer their perspective on what causes some companies to falter. Tilson and Heins do so in discussing the new book from Jim Collins, How the Mighty Fall. “Investors can gain a lot of insight from Collins’s new book,” they write. “He finds, for example, that failure is much more likely to result from corporate overreaching than from complacency.” Executives confuse “big” with “great”, according to Collins’s book, and overdiversify, move into businesses in which they can’t be leaders, and grow […]

Tilson & Heins: “Buy-and-Forget” a Losing Proposition

In their latest Kiplinger’s column, Whitney Tilson and John Heins examine a 10-year-old Fortune magazine article to stress some of their core beliefs about investing — including the idea that buy-and-hold investing (or, perhaps more accurately, “buy-and-forget” investing) can be a dangerous practice. The Fortune piece, entitled “10 Stocks to Last the Decade”, highlighted 10 stocks that investors might add to their portfolios and be able to hold for the next decade, because these firms were poised to capitalize on overarching trends. Among them: Nokia, Morgan Stanley, Viacom, and … Enron. All in all, Tilson and Heins say, an equally […]

Tilson & Heins: Healthcare Fears Overdone

Add two more top strategists to those who say that healthcare reform fears are creating some bargains in the sector. In their latest Kiplinger’s column — a piece on contrarian investing — Whitney Tilson and John Heins say they think the healthcare fears are overblown. “Investors fear that health-care reform will hurt the entire industry, a key reason that the sector trades at just 12 times earnings, or 36% below the P/E of the S&P 500 (historically, such high-quality businesses have commanded higher P/Es than the index),” Tilson and Heins write. “We think that the pessimism is overdone.” One good […]