In a submission to Seeking Alpha, Contrarian Investor’s Mark Schlotzhauer uses Nortel as an example of how investor needs to focus on value rather than following the crowd. To assess whether Nortel is good value, Schlotzhauer uses GuruFocus.com as a benchmark (it’s a site that tracks the investment portfolios of super-rich people such as Warren Buffett). Of this elite crowd, only two (Charles Brandes and George Soros) own Nortel. Schlotzhauer concludes that he is “staying clear of Nortel as we feel it does not have an adequate margin of safety and no economic moat ( i.e. sustainable competitive advantage)”.
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