Leslie Norton of Barron’s recently interviewed Paul Sonkin in a story appropriately titled, How to Pitch a Stock. Unfortunately, due to copyright restrictions, we can’t reproduce the story, but here is a snippet:
Barron’s: How does your book differ from other investing books?
Sonkin: Ours is a survival guide… …It gives you everything you need to know in any environment… …I was a portfolio manager for 22 years. I’ve taught over 450 students over 16 years. [Our book] addresses everything we’ve seen our students experience… …we try to say what elements you need to be successful.
Barron’s: Which are?
Sonkin: There are four questions you need to answer: What is the upside? What is the downside? Is there a genuine mispricing? What will act as a catalyst to close the price and intrinsic value? Those four things will be present in any kind of market environment. A lot of analysts can come up with investment ideas, but can’t communicate them in a succinct, timely manner. That’s where the communicating comes into play.
If you would like to read the entire interview follow this link. Students and faculty can access the interview online through their university library using Factiva, ProQuest or ABI/INFORM.