Stalking The Education Sector For The Big Money

Frederick Kobrick had this to say about “big money” in his great book The Big Money: Seven Steps to Picking Great Stocks and Finding Financial Security (Amazon affiliate link):

 Over time, you’ll be able to work with more confidence and less frustration, and have a far better chance of making the big money. While this can be triples and quadruples, I think of the “big money” as more like making 10X, 25X —even 100X or 200X—your investment by owning the greatest companies, and owning them with true insights and patience over the long term.

Any time some stocks in a sector collapse by about 90 to 95 percent, we go on the lookout for a great investment that could deliver the big money. We are patient waiting for the perfect set-up: greatness at a cheap price. 

The private education sector has come under intense pressure recently because of the higher-than-normal delinquency rates of government student funding. This situation has created all kinds of issues for these companies. As an example, Corinthian Colleges (COCO) is down 86 percent from the all-time high it reached in 2004.

The education stock’s valuations have not reached our target levels yet, and we are far from being convinced that we can find a great company among the rubble, but we are stalking.

Is there anything on your radar screen that you think will make you the “big money”?

Written by Michael Bigger. Follow me on Twitter.