I often go back and re-read things that have shaped my perspective on managing portfolios. In my 20s (in the 1990s) I was fortunate to have a friend and mentor named Clay Allen who taught me volumes on the art of portfolio management.
First thing first, Keurig Green Mountain (ticker:GMCR) is not a Knowledge Leader, which means as an investment team we don’t spend a lot of time delving into the intricate details of the stock.
Similar to a basketball player with a ”hot hand”, stocks go on statistical runs. And similar to a player with a ”cold streak”, stocks have slumps. Over time, with a proper perspective, it is easy to measure the extent to which these runs and slumps play out in the market and invest accordingly.