Should Investors Follow the Smart Money and Buy Nintendo Stock?
Sometimes it can pay to follow the stocks the big investment firms buy. The investors who manage billions of dollars can gain important insights about an industry or specific company through discussions with company executives and meticulous research that individual investors can't conduct on their own.
ValueAct Capital makes investments in companies with the potential to unlock value for shareholders. Unlike other activist firms, ValueAct stands out for its willingness to work with management to grow the value of the company over the long term, instead of pushing for drastic changes in pursuit of a quick reward.
Based on a letter obtained by Reuters, ValueAct has built a 2% stake in Nintendo (OTC: NTDOY) worth $1.1 billion. It's not a good idea to blindly follow even the most respected value investors. While the smart money can be a good source of investment ideas, it's wise to assess the company for yourself to determine if the stock is suitable for your portfolio.
Source Fool.com
