This is how I win. I don't index. I don't hide in a basket of stocks, collect fees, and trust fate. I look for good set-ups, place sometimes over-sized bets and obsess over my picks like a protective mother. I scale my exposure up and down, depending on the market. And I do homework. An unreasonable amount of homework.
It's a frustrating way to invest. But, man, it's really satisfying when the plan comes together.
In December, I made Target my turnaround stock of the year. I got long Target via LEAPs then common stock, explaining my thought process along the way. Last month I told investors Target had gotten Back in the Game. Last week, in a member-only video, I made a Wish List for what I wanted Target to say when the company reported earnings and held its Investor Day today.
I wanted the company to return to fashion and focus on improving the shopping experience, rather than on Target's agenda. I wanted Target to refresh its grocery and expand its housewares. In other words, I wanted Target to get back to being Target.
And, to the point of our goal here, I suggested the stock would go much higher if the company did these things.
Today, Target reported a lousy quarter, gave cautious guidance, and detailed plans to do just about everything else on my list. The stock responded favorably in an otherwise horrible tape.
