Episodes

Be Careful Out There

Episode #262 | June 13, 2022

Episode #262 | June 13, 2022

Be Careful Out There

In This Episode

Today, we welcome Broyhill Asset Management President and Chief Investment Officer Chris Pavese to the Stansberry Investor Hour.

It has been three years since Dan and Chris last spoke on our show. And needless to say, a lot has changed in the markets and the world since then – including a pandemic, war, and economic turmoil. As a seasoned industry veteran who has guided his clients through previous cataclysmic financial events, Chris has some advice to offer novice investors...

He explains the big mistake fledgling investors make is "chasing the most spectacular returns" and looking for advice from people or places that "put up great numbers in bull markets" while ignoring their performance during bear markets. After all, he says, "The most spectacular returns of 2021 are posting the most spectacular losses this year."

Chris and Dan both agree that focusing on finding value in a market environment like this one is your best bet. That's the kind of research Chris' firm Broyhill specializes in... like examining big mergers and acquisitions to look for gems and breezing past airline stocks – which Chris describes as "notoriously awful businesses with notoriously awful balance sheets" – in favor of an overlooked sector right next door.

Finally, Chris imparts some wisdom regarding investor behavior thanks to his many years of advising clients – including the psychology around the big topic of "when to sell." And he shares the one simple and absolutely essential, yet often overlooked, thing to do before investing in any public company.