InvestorQ : Do investors with long term view also need to keep an ear to the ground?
Sam Eswaran made post

Do investors with long term view also need to keep an ear to the ground?

Answer
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Anu Biswas answered.
2 years ago


For investors the need to keep an ear to the ground assumes a different importance altogether. Investors are long term players who are looking at opportunities to find underpriced and overpriced stocks in the market. Let us say you visit a supermarket and you overhear a conversation about how the latest space radio is selling like hot cakes. Perhaps, the enthusiastic sales girl in a bid to make this sale may have let you into this secret about how orders for the space radio are outstripping the supply. That is a cue for you to do a more detailed research on the company. Let us look at this point the other way! Assume that you are walking through a supermarket and as you are comparing products you realize that a star product is receiving a lot of complaints. You need to investigate a little further and try to get to the bottom of it. The beauty of keeping your ear to the ground is that you can get useful cues from a variety of sources. It could be a frustrated agent, it could be a wholesaler strapped for time or it could be a delighted customer. The pick is yours! As Peter Lynch, the legendary fund manager of Fidelity put it, “I picked up a lot of my investment ideas by keeping my ears and eyes open in the most unlikely of places”. That probably says it all!