Hello from Greece.
The sun is shining, the water is crystal blue, and the food is amazing.
Top value fund managers are ready for the small cap bear market to be done
During the bull market, small caps haven't been performing well, but some believe that could be about to change. Breach Inlet Founder and Portfolio Manager Chris Colvin and Gradient Investments President Michael Binger both expect small caps to take off. Q1 2020 hedge fund letters, conferences and more However, not everyone is convinced. BTIG strategist Read More
I should be unplugging from the markets, but I'm still looking for good buys. I'm the type of person that goes mad if I just sit and do nothing.
My criteria is getting stricter, and jumpy markets are giving opportunities for nice entry points.
Q1 is out of the way and the market finally went negative. A measly -2% or so.
By being on top of my portfolio, staying more "active" and being critical of position sizing, my portfolio is holding up well in positive territory.
Let's keep things rolling in Q2.
What We're Reading in the Media
Cryptocurrency 2018 Overview
After a huge run in 2017, most cryptocurrencies are being decimated in 2018.
An interesting and well written piece on the demise of Circuit City. I recall looking at their financials and seeing the many red flags that make you want to run from a retailer.
- falling revenue
- slower turnover
- increasing COGS
Not good signs with any business.
Couple of quotes that got me thinking.
- “But the time you get in trouble is when you think you know the answers.”
- "Under pressure from shareholders, Circuit City spent almost $1 billion between 2003 and 2007 buying back stock at an average of $20 per share. But the purchases couldn’t offset the fact that Circuit City’s business was failing, and the stock was worth only $4.20 per share by the end of 2007."
Buffett says that the business model has to be easy so that any idiot can run it, but in Circuit City's case, rather than adapting and improving, they spread their focus on other areas and tried to revive the company through one bad decision after another.
Also, stock purchases are not always good. Only if a company is fundamentally strong, is it a good decision. Otherwise, better to spend that money elsewhere.
Other reading links:
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