Transcending Speculation: Fr. Emmanuel Lemelson Parses High-Level Market Strategies

Fr. Emmanuel Lemelson
took the podium at the First Annual Stowe Conference for Charity and offered his expert wisdom, which combines his two professions: serving as a Greek Orthodox priest and hedge fund manager.

While Lemelson did discuss some of his positions, including his short thesis on Domino's Pizza, Inc. DPZ and long position in Geospace Technologies Corporation GEOS, the purpose of this report is to highlight some of his market thoughts.

Speculation Versus Investing

Lemelson explained what he believes to be the main difference between speculation and investing. According to the priest and fund manager, speculation is associated with trading while some of the world's most successful people hold onto one notable investment that is held for a really long time.

"There is an old saying as activity goes up returns go down," Lemelson explained. "In my mind, it may sound like a cliché, the long-term horizon is what counts."

Lemelson further explained that his fund buys securities at a price which are believed to be below their fair value. This style of investing also eliminates the long-held notion that investors need to take on higher risk for higher returns.

Nobody Can Predict The Market

Lemelson went on to state the obvious — no one can accurately predict where the stock market will trade at tomorrow, next week or even next year. While he doesn't believe it is possible to predict the market, that doesn't mean that investors can't think ahead and take a look at what individual stocks would look attractive under a market correction.

His advice is simple: Stick to companies that are easy to understand and stay within a "circle of competence." On the other hand, there is great risk for investors to jump into the "spirit of the times." After all, it is human nature to follow a group and in the investing world "that is not a good thing."

Also important to note is that the stock market certainly has cycles and is prone to change direction. The problem is no one knows when exactly these cycles will change.

Finally, Lemelson suggested that a large investor with holdings in up to 100 different stocks are perhaps over-diversifying themselves. He highlighted the fact that Jeff Bezos' core holding is his stake in, Inc. AMZN while Mark Zuckerberg's core holding is in Facebook Inc FB.

As such, if investors have done their proper homework and are confident a stock is undervalued then why not just "act on it" and over-allocate. At the end of the day, great investments don't come along that often.

Related Links: Geospace Could Become A $65 Stock In 4 Years Drug Price Bubble A Result Of Decade-Long Economic Policy Issues ________ Image Credit: By Politico16 (Own work) [CC BY-SA 4.0 (], via Wikimedia Commons
Posted In: Emmanuel LemelsonHedge FundsStowe Conference for CharityNewsEducationPsychologyEventsMarketsMediaGeneral

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.