Blame Management and Human Sacrifice
At the 2021 SALT New York conference, which was held earlier this week, one of the panels on the main stage discussed the best macro shifts coming out of the pandemic and investing in value amid distress. The panel featured: Todd Lemkin, the chief investment officer of Canyon Partners; Peter Wallach, the managing director and Read More
http://hussmanfunds.com/wmc/wmc150615.htm 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
|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|
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