Olstein reveals why he tossed old media stocks

Aaron Pressman

Following up on a post from the spring, when I noticed that money managing legend Bob Olstein had lightened up on newspaper stocks, the guru of balance sheet scrutinizers has now given a fuller explanation. No doubt that Olstein is a great a fund manager, as his Olstein Financial Alert Fund (Symbol: OFALX) has beaten the S&P 500 by over six percentage points A YEAR for the past 10 years. He was also way ahead on calling out some of the stock market's biggest busts like Enron, Lucent and Boston Chicken. So pay attention to his latest annual report (PDF file) where he writes at length about the importance of fessing up to investing mistakes and dumping them. Specifically, in his case this year, old media stocks. Olstein said his fund sold its positions in Journal Register Co. (JRC), Knight-Ridder (KRI) and Tribune Co. (TRB). Why?

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