For many investors, the current investment environment feels challenging. The new administration in Washington is charting a very different path than that pursued by the Obama team. For much of the preceding eight years, the Federal Reserve was the focus of investor attention.
In recent months, we have felt the consensus opinion start to move in our direction. Perhaps the slowly improving economy has enhanced investorsā risk tolerance, possibly itās the election, or maybe a review of the return from stocks has raised investor confidence.
At Poplar Forest, weāre focused on delivering results that canāt be replicated by a computer algorithm. We spend our time investigating companies with the goal of distinguishing the ācheap for good reasonā from the real bargains (like a red convertible on a cold winter day).
