Coattail investing the energy sector rally this spring

The energy sector rally this spring confirms coattail investing adherence to billionaire investor picks remains solid. Investor portfolios shadowing Carl Icahn’s oil plays saw double-digit returns in less than 60 days. Buffett is also a fan of top-notch management teams -- and Apple certainly fits the bill. CEO Tim Cook has done a stellar job of steering the ship in his 14 years as CEO. In recent years, he's been shifting the company's focus toward higher-margin subscription services, which will only enhance existing brand loyalty, as well as minimize the revenue ebbs-and-flows that often occur when introducing major upgrades to iPhone (Apple's top-selling device). "I am a contrarian by nature, so I look for situations that are out of favour – yet have a catalyst for change that will lead to a revaluation," Mr. Polomny says. "I also look for situations where there is forced selling or non-company news that drives down the stock. When the forced selling or non-company event dissipates, the market can go back to focusing on company-specific fundamentals." Major buying in strategic infrastructure stocks is expected to sustain mid-term gains.