Wednesday, October 24, 2012

The thin cow…

I mentioned Gene Hoots’ book Pay Attention to the Thin Cow a few weeks ago. Below is excerpt from the book, explaining the title.

“My grandfather once asked my uncle Ken, “Why do you pay so little attention to the advice of others?” Kenneth answered, “Because I am the only one that I’m certain is working for me ALL the time.” He was skeptical about advice, experts of every ilk, and especially politicians. No one was more widely liked than my uncle.

He made a living for over sixty years as a farmer and cattle trader. He was a true contrarian. He told me that at cattle auctions, most people buy the fat, slick cattle – they look healthy and prosperous, and they are priced accordingly. He always bought sickly looking, thin cows. He said there was nothing he could do to improve the fat ones, but he had a fair chance of improving the prospects of the thin ones and selling them for a profit. Investors would be well advised to use his approach in searching for stocks.” –Gene Hoots, Pay Attention to the Thin Cow


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