Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Spice Up Your Portfolio

Warren Buffett recommends investing in great companies at good prices, and never letting them go. That's why companies like Coca-Cola (NYSE: KO  ) , Washington Post (NYSE: WPO  ) , and Wells Fargo (NYSE: WFC  ) have been part of his portfolio for a long time.

I can't argue with his philosophy or his investment returns. And here at The Motley Fool, we believe that buying and holding terrific stocks is a great way to generate market-beating returns. But it's not the only way.

Sometimes, special situations pop up in the stock market. Before Buffett changed his mantra, he made a killing finding all kinds of mispriced opportunities. In fact, he invested in American Express (NYSE: AXP  ) following the "salad oil scandal" long before he invested in it because of its powerful franchise.

At The Motley Fool, we believe in diversity. That's why we love our message boards, CAPS, and special situations. To spice things up a little bit, we want to share our thoughts about these unique opportunities, which can sometimes generate excess returns.

Seth Jayson's wife turned him on to Guess? (NYSE: GES  ) . Now he thinks comebacks and turnarounds in retail offer unique opportunities.

Equity as an option
Jim Gillies looked at a stock from a different perspective, and he was surprised by what he saw.

Deep discounts
I'm digging deep in my value-investing toolbox to study a classic special situation, Ben Graham's net-net.

Nate Parmelee examines why spinoffs are a turn-on, highlighting how many good businesses have come from Sara Lee (NYSE: SLE  ) .

We've put together a nice blend of ideas in the pot, and we can't wait for the flavors to combine as it simmers. As they say, variety is the spice of life.

Do you consider yourself a special-situations investor, or are you interested in learning more about these opportunities? Tell us about your interests in our very brief Special Situations Investing Survey. Your comments will help us develop future content to fit your needs.

Coca-Cola is a great company and a Motley Fool Inside Value recommendation. But lead analyst Philip Durell also likes a good special situation now and again. To see which ones he's recommended at Inside Value, sign up today for your free 30-day trial.

Retail editor and Inside Value team member David Meier learned about evaluating great companies and special situations at Wake Forest. He does not own shares in any of the companies mentioned. He is currently ranked 675 out of 25,209 investors in The CAPS rating service, and you can view his TMF profile here. Sara Lee is a former Income Investor selection. The Fool takes its disclosure policy very seriously.

Read/Post Comments (0) | Recommend This Article (9)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 524881, ~/Articles/ArticleHandler.aspx, 10/27/2016 11:32:02 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,199.30 -0.03 0.00%
S&P 500 2,137.36 -2.07 -0.10%
NASD 5,236.82 -13.45 -0.26%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/27/2016 11:15 AM
AXP $66.76 Down -0.04 -0.06%
American Express CAPS Rating: ****
GES $13.56 Down -0.23 -1.67%
Guess? CAPS Rating: ***
GHC $473.00 Down -0.90 -0.19%
Graham Holdings CAPS Rating: ***
HSH.DL $0.00 Down +0.00 +0.00%
Hillshire Brands CAPS Rating: **
KO $42.02 Down -0.42 -0.99%
Coca-Cola CAPS Rating: ****
WFC $46.47 Up +0.32 +0.69%
Wells Fargo CAPS Rating: ****