Sunday, May 07, 2006

Proxy Investing

Great post over at Abnormal Returns relating to what he (she?) calls proxy investing. Essentially, it's finding a favorable trend, then figuring out what companies will benefit from that trend. Essentially, that company you invest in, is a "proxy" way to invest indirectly in the trend itself.

A checklist is provided so that you can analyze your chances of using this profitably.

I highly recommend you take a visit over there, and perhaps add this bit of wisdom to your investing scrapbook.


The Confused Capitalist

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