Blame Management and Human Sacrifice

Blame Management and Human Sacrifice



Morningstar Investment Conference: Using Annuities In A Portfolio For Added Stability

portfolioOver the past decade, annuities have fallen out of favor with investors. These retirement products became popular in the US during the Great Depression when potential retirees were looking for a secure income stream that would be unaffected by stock market volatility. Q2 2020 hedge fund letters, conferences and more If you’re looking for value Read More


wmc150615b Never in market history has the MEDIAN stock been so highly priced relative to valuation metrics.



Buy the Accused, Sell the Acclaimed

Going back to behavioral finance and what causes cheapness: Blaming Management and Human Sacrifice

Buying Distress and Falling Knives

Symbol Company Price Shares Amount Comm. Total Date
CLD Cloud Peak Energy 4.66 1071 $ 4,991 8 $ 4,999 6/14/2015
BTU Peabody Energy 2.47 2020 $ 4,989 8 $ 4,997 6/14/2015
CNX Consol Energy 25.51 196 $5,000 8 $ 5,008 6/14/2015
$15,004.00 6/14/2015

I am buying a basket of coal miners today with different characteristics. CNX is not a pure coal company. Peabody is more of a stub stock since its market cap is about 1/10th its debt–scary! I will add on a further 25% decline. Holding period: five years. I recommend that anyone reading this NOT follow me. Do your own thinking or mis-thinking as the case may be.

We also don’t want to confuse low nominal prices or declining prices with “cheapness.” There are plenty of junior resource stocks trading for pennies that are worth $0. Microcap_stock_fraud

No hope: btu