Dear fellow investors, We believe there is a severe lack of liquidity in the stock market and it shows itself both directions. Good news is overly capitalized to the upside and bad news is more heavily punished than in prior […]
Author: Smead Capital Management
Underperforming Like It’s 1999
“History never repeats itself, but it rhymes.” – Will Rogers Dear fellow investors, The singer, Prince, wrote about “partying like it’s 1999.” We can tell you that 1999 was no party unless you owned the most popular tech stocks and […]
Just Do The Math!
Dear fellow investors, We remember looking at demographic charts back in the 1990s which compared the population of the peak borrowing age group (28-40) with the peak savings age group (49-62). At that time, 10-year Treasury bonds were still yielding […]
Channeling Warren Buffett
Dear fellow investors, The most popular missives we write are associated with Warren Buffett‘s annual letter to shareholders and the annual shareholder meeting in Omaha. This year we thought it would be fun to channel Mr. Buffett and attempt to […]
Ph.D. In Used To Be
Dear fellow investors, “Those who don’t know history are doomed to repeat it.” – Edmund Burke A popular song and a recent article in The Wall Street Journal reminded us of Edmund Burke’s quote and how important history is to […]
All The Outcomes Are Unknown
Dear fellow investors, We go through life being taught far more certainty than is actually present. Life isn’t black and white, but instead various shadings of grey that end in black or white, only after the fact. As a recent […]
Price For Clarity
“The higher they go, the cheaper they look” – Stanley Druckenmiller Dear fellow investors, The market hates ambiguity. That’s what we’re told, and on any short-term basis, we can see the market vote accordingly. In a world where investing has […]
C.I.a.P. Meets C.R.a.P.
Dear fellow investors, Amazon recently announced that they are combing through the list of things they warehouse and sell to determine which items “can’t realize a profit” (C.R.a.P.).1 We found it very interesting how they are determining which items to […]
Academia vs. The Real World – Part 2
Dear fellow investors, We are revisiting our discussion of what the real world is like versus what academics claim in papers and debates. A good way of putting this is “Academia has a tendency, when unchecked (from lack of skin […]
Academia vs. The Real World – Part 1
Dear fellow investors, “To emit a Yogiberrism, in academia there is no difference between academia and the real world. In the real world there is.” – Skin in the Game by Nassim Taleb In preparation for a talk, I began […]
