Opening the Doors to Secular Trends Portfolio
Posted on | September 9, 2008 Time: 7:50 pm |
My goodness, there is blood on the streets today. While I’ve been around long enough to see volatility like this before, it still both shocks and amuses me.
It’s not that I can’t understand why say, Lehman is getting whacked today. They’ve been in the crosshairs for many months, but this level of selling fails some basic market efficiency tests. Is Lehman the company really worth 45% less, $5 billion in market cap less than yesterday afternoon?
Is Petrobras worth $17 billion less than yesterday? Is BHP Billiton worth $10 less because of today’s 3% drop in the price of crude? Today is a day of irrationality, which is precisely why I’m opening some long positions today in the Epiphany Investing Secular Trends Portfolio.
The first position is Peabody Energy (NYSE: BTU), the largest coal producer in the U.S. For a primer on the investment thesis, check out my prior commentary about green initiatives at Peabody and an overview of the supply/demand structure for coal.
I want to get this in before the close, so I’m opening up a 4% position, or $40,000, at $45.55
Ryan Barnes
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Pragmatic commentary on U.S. & global investing, demographics & secular trends, and the valuation of anything worth valuing. Objective, unbiased research; We believe in minimal design, zero gimmicks, and maximum results.
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