The Diamond Rule
Sometimes you will find a diamond in the stock market. If no one else likes it, that doesn’t change the fact that it is still a diamond. Often, you just have to pick it up, polish it, and tell people about it. Soon, other investors will be rushing over to bid for your diamond, even though they previously ignored it.
Maybe you have found a great stock that trades at five or six times earnings and pays a dividend. But no one else likes it right now because of market conditions. Does that make it a bad company? Not a chance. It might be just waiting for conditions to improve. Smart managers know this, and are willing to give their favourite names enough time to sparkle.