Tilson & Heins: Look for Safer Buys in this Market

In their latest “Discovering Value” column for Kiplinger’s, Whitney Tilson and John Heins warn that investors shouldn’t give in to the temptation to swing for the fences by buying speculative stocks after the recent market plunge, but instead should focus on solid, undervalued stocks. “Given the perilous state of the economy, this is not the time to take unnecessary risk,” write Tilson and Heins, who do a great job explaining the neuropsychology that drives investors to seek out big gainers that are too risky. “Fortunately,” they note, “plenty of stocks combine solid potential for appreciation with strong protection against further […]

What Does It Mean to be a Value Investor?

In a piece written for Forbes.com’s “Gurus’ Guide to 2009“, John Heins and Whitney Tilson do a great job in examining just what makes an investor a value investor. While value investors come in all shapes and sizes — large-cap, small-cap, activist, non-activist, U.S.-focused, foreign-focused — Heins and Tilson list 12 similarities they share. A sampling: They focus on intrinsic company value and buy only when there is a substantial margin of safety, rather than trying to guess where the herd will go next. They understand and profit from reversion to the mean rather than projecting the recent past indefinitely […]

Tilson, Heins See Upside

In Kiplinger’s Discovering Value column, Whitney Tilson and John Heins say there are two silver linings that have emerged from the market turmoil. The first is that the unprecedented market volatility might be the signal of a stock market bottom, and once that bottom is reached the market could generate some impressive gains. The second positive is that the downturn in the market has created some excellent long-term buying opportunities, and the columnists/money managers like larger caps like Berkshire Hathaway, McDonald’s, Wal-Mart and small/mid caps that have been hit by lowered earnings expectations and hedge fund selling. Tilson and Heins […]