Hi Allen, Re: Best of the Worst.........................
With all the individual companies suffering in a particular sector, I then hunt for the best quality of earnings, debt to capitalization, Price/Book, price/sales, free cash flow and whatever other metrics I can study.
In other words, I don't want the company that is the worst at managing its own business, I'd prefer to pick from the best. Since the sector is all currently out of favor, I can assume that even the best companies are well off their peak prices. This gives the portfolio some added strength for the long term.
Remember the movie, "The Good, The Bad and The Ugly?" Picking the best of the worst is a way to help eliminate most of the Ugly and some of the Bad so we build our portfolio out of mostly the Good.
AIM will then manage those holdings for us for the long term.
