In our Chart for the Curious about Apple Computer, we document the challenges faced by investors who follow forecasters. For those seeking compelling evidence based on robust quantitative methods, please see our White Paper The Persistence of Profits. That piece builds on work done by a legendary professor of behavioral finance...
• The chart shows the performance of aftermarket automotive products supply and distribution firm Advanced Auto Parts, over the last 3 years
• Since 2018 the stock has risen over 50%
• We have been proponents of investing in companies that make what you need, not what you want, particularly in times like today, as explained in our...
Remembering the Risks of “The Smartest Guys in the Room”. We recently put out a two-part summary of Bethany McLean and Peter Elkind’s brilliant book The Smartest Guys in the Room. In an earlier piece, we quoted legendary financial historian John Kenneth Galbraith, who quipped that investors’ memories last “...at a maximum, no more than 20 years.” The KCR team agrees.
2021 has been a terrific year for KCR. For like-minded investors who believe in buying high-quality companies at reasonable prices, 2021 was a much-needed reprieve. We would like to offer our deepest thanks to all of our subscribers and wish you a happy and healthy New Year!
*The chart shows the rolling 10-year period returns since 1800 *Where available we show the Shiller PE peak and trough valuations *The chart shows a reasonably consistent pattern of 10-year runs followed by dismal decades...
This week’s “Chart for the Curious” follows up on our CFTC from last week and our piece on Andrei Shleifer’s legendary book on Behavioral Finance. In those pieces, we discussed how investors piled into Gold after the GFC implosion, which ended up being precisely the wrong time to do so.
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