Fisher rejected the common belief that blue-chip stocks are 'conservative.' He argued they are more likely to lose ground to innovative competitors. A truly conservative investment is a well-managed, dynamic enterprise that consistently grows and builds value, as these are the businesses that endure.
Templeton sought stocks so unloved they were like books in a dusty basement corner nobody visits. Actionable signals of such neglect include zero institutional ownership or IR departments that haven't received calls from investors in years. This is where the greatest price inefficiencies are found.
Rainwater's method was to find a great business with poor management, acquire a stake, and then use his influence to install a world-class leader. He did this with Disney by bringing in Michael Eisner, believing the 'fix was just really easy. All he had to do was change the CEO.'
Buffett emphasizes 'controlled greed.' His equally smart partner, Rick Guerin, was impatient and used margin loans. When the market fell nearly 70% in 1973-74, he was forced to sell his Berkshire shares back to Buffett for a pittance, missing out on generational wealth.
Lynch's strategy for owning many stocks was a research process. He would buy all stocks in a promising industry to gain 'skin in the game,' forcing himself to learn the sector's rhythm. This allowed him to quickly identify the true winners and reallocate capital, rather than picking one from the start.
Wilson advised against trying to perfectly time the peak of a successful company's dominance. Competition will eventually emerge, but anticipating its impact is futile and often leads to premature selling. He believed you can make a fortune by riding a winner for years before the problems become acute.
Fund managers are like zebras. Those in the middle (owning popular stocks) are safe from predators (getting fired), even if performance is mediocre. Those on the outside (owning unfamiliar stocks) find better grass (higher returns) but risk being the first ones eaten if an idea fails. This creates an institutional imperative to stay with the consensus.
Legendary growth investor T. Rowe Price shifted to inflation-resistant assets like real estate and gold when imitators bid up growth stock valuations to unsustainable levels. He demonstrated that even the best strategies must be adapted or temporarily shelved when they become overpopulated, only returning once the crowd had left.