Shelby Cullom Davis: Dowager's Living Room Portfolio

“Davis's portfolio had the constancy of a dowager's living room. If a company he owned failed to meet his expectations, he disposed of it. If it merged with or was acquired by a larger company, he'd sometimes take his profit and invest elsewhere. But these were exceptional cases. Mostly, he bought and held. Year after year, he stuck with the same names.”

“While the Dow went south (down 24 percent from 1947 to 1949), Davis's portfolio went north. He was in the right stocks and the right industry, and his rapid moneymaking got a considerable boost from leverage. He borrowed $29,000 the first year and continued to borrow to the maximum throughout his career.”