Dear fellow investors, On a recent trip to visit clients in Denmark, I had some free time and visited the Viking Wooden Ship Museum in Roskilde. The museum houses cargo and military ships made from oak trees, crafted with materials […]
Author: Smead Capital Management
The Risk Pendulum
Dear fellow investors, “What the wise man does at the beginning, the fool does at the end!” – Warren Buffett A series of important factors in the U.S. stock market are in play which beg the question, “Are we at […]
The Inevitables 2
Dear fellow investors, As we watched this year’s Berkshire Hathaway Annual Meeting, one thing struck us. There was sheer enthusiasm around the annual shareholder meeting for anything tech-oriented. Yes, it was disclosed that Berkshire had taken a position in Amazon […]
Did Vanguard Kill Wall Street’s Golden Goose?
Dear fellow investors, Many are wondering why the market for Initial Public Offerings (IPOs) has performed so poorly, even though the flood of hot new ones came to market recently. It took three years to choke demand for money-losing dot-com […]
The Beyond Meat Market
“Don’t Believe the Hype.” – Public Enemy Dear fellow investors, We have written a good deal about the parallels of today’s market with the tech and telecom bubble of the late 1990’s. While no two time periods are ever the […]
Berkshire Hathaway Annual Meeting 2019: Who Is Judas Iscariot?
Dear fellow investors, Charlie Munger set the tone for the 2019 Berkshire Hathaway Annual Meeting. He said that people involved in creating cryptocurrencies, “honored the life and work of Judas Iscariot.” On many major subjects, questions were fired at Warren […]
Today’s Profit Margin Distortions
Dear fellow investors, Late in bull markets there is often a pervasive excitement that arises. At that time, not all profit margins are created equal. Financial euphoria can cause distortions in industries and businesses. These distortions are due to the […]
The Potential Illiquidity Bonanza
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 […]
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 […]
