I'm always on the lookout for a good idea. What's the difference between a hot tip and a good idea? For me, it's at least 24-hours worth of investigation. Where do I find good ideas? I glean publications like Better Investing, Forbes, Barron's, the Wall Street Journal, and various websites like Seeking Alpha.
Peter Lynch, the former manager of the Fidelity Magellan mutual fund, taught me several things. His book, One Up On Wall Street, was based on the premise that often the average person can spot business trends before the financial pros, and these observations (such as which stores in the mall are full of customers) can translate into good investment decisions. Lynch taught me that a bear market is not an unusual event, it is a recurring event (like winter). No need to panic; just be prepared. Lynch also taught me that good bedtime reading is the Mergent's Handbook of Dividend Achievers (formerly Moody's Handbook of Dividend Achievers). It's published quarterly and about every three years I'll buy a copy of the Spring edition because it includes the December quarter, which is the end of the fiscal year for many companies. Peter Lynch taught me to keep my eyes open and pay attention.
John Templeton, founder of the Templeton mutual funds (which later merged with the Franklin Funds to become Franklin Templeton) was one of my heroes. He was always a steady rudder in a choppy sea. He was a master at finding good investment ideas, and he pioneered in the arena of global investing. I admired his skill, but I decided not to follow him overseas. I do not have the time or the resources to investigate foreign investments, so I leave this important aspect of investing to my professional pension managers. Templeton taught me the importance of thinking globally, however. He also taught me something about hope. I was always amazed at his ability to see the big picture and to look beyond any present malaise that might be looming.
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