August 5, 2008 | Posted by

You Don’t Have to Be Sick To Own HMOs

You want to buy straw hats in the winter. This sums up an important kernel of successful value investing: making decisions (buying and selling) that are unpopular at the time. (Of course, one has to make sure that, due to global climate change, winter is not swiftly followed by an ice age. In the case of the stocks I am about to discuss, today is winter and the summer will come again.)  

In the following article that I wrote for Forbes.com I describe why we believe that HMO stocks like United Healthcare (UNH) and Well Point (WLP) (we own both) are incredible buys.   Stocks had a small run since I wrote it, but their valuations are still compelling. 

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Short URL: http://ContrarianEdge.com/?p=285

  • PlanMaestro

    Vitaly, another idea for yout “Themes” is to review sectors and their valuations. I liked a lot the analysis in your book of why Banks should have lower P/Es.

    Health insurance / HMOs could be another sector to do an analysis. It is cheap (HUM, WCG, UNH), incomprehended and not so easy to put a number on.

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