GuruFocus interviewed FPA's Steven Romick one day after QE3 was announced. Here are some of Romick's thoughts on dealing with the macro in the context of being a bottoms up stock picker. He also talks about idea generation and going to where the most negativity is to search for bargains.
GuruFocus: Okay. So talk about the macro picture. What is the macro risk now?
I think today, the biggest thing is that the central banks think the
only way out of this is just to print money, and so we’re in uncharted
territory. We’ve taken what was an academic discussion and decided to
experiment in the real world. There’s a whole range of outcomes, some
that we can identify and others that I’m certain that we can’t identify,
and it’s scary. Will we have inflation or deflation? If it is
inflation, will it be a deflationary path to inflation? And then, how do
we position a portfolio if we don’t have a strong conviction that it’s
one or the other, inflation or deflation? What benefits a portfolio in
an inflationary world is very different than what benefits a portfolio
in a deflationary world. It’s very, very complicated.
On whether HPQ was a mistake:
Romick: It’s to be determined.
Steve Romick GuruFocus interview