Digging for Deep Value: Stocks Below 10x Earnings
The chart shows the number of firms trading below 10x earnings is at all-time lows We chose 10x earnings because it is a round number and really simple Many ...
Large vs Small Cap Stocks: Could the Past be Precedent
The Case for High-Quality Small Caps: The chart shows that small cap value stocks have only been this cheap vs. large cap stocks at the peak of the dot.com ...
The Steep Cost of Stock Compensation
Are Stocks With the Highest Growth Healthy? The chart shows the market cap of firms where stock compensation represents over a third of SALES We have written three pieces ...
Stocks versus Bonds and the Problem with Profitless Stocks
The Problem with Peak Prices and Record Low Yields: In Seth Klarman’s Margin of Safety Book, he discussed the 1980s junk bond mania before it imploded Back then many ...
Stock Prices & The Might of Mean Reversion
Making Simple Concepts Work for Your Investments: We have written a number of papers about the simple math that makes large cap investing in even high quality names difficult ...
Profit Growth: The High Price of High Expectations
Bloomberg published an article citing academic research noting firms with high expected profit growth tend to underperform Longtime readers of ours flagged us as we wrote extensively about this ...
Is Equity Beta Broken?
Beta, or the amount a stock price goes up and down relative to the market, is a popular measure of “risk” Famous investors such as Seth Klarman have observed ...
TAM Total Available Market Myths
We’re the Next Amazon – This NEVER Ends Well: We believe “Total Available Market” stories and obsession with stocks that grow fast are as overhyped today as in 1999 ...
Financial Stocks: Best Stocks to Buy for 2022?
Buy Financial Stocks vs. the Index? FACT: Bank of America earns 30x the profits of ZM, but BAC is only ~3x bigger Sometimes the greatest investment ideas can come ...
Macro Aware & The Need for KCR’s Equity Duration Tool
A Critical New Metric to Estimate Risk & Return: KCR does not make macro forecasts, but we are “macro aware” – inflation has never been more topical Our piece ...
Difference Between Growth and Value Stocks Looks Like an Opportunity
For a basic explanation of value v growth stocks skip below the chart The chart below shows the 3-year performance spreads between Growth and Value have reached levels last ...
Differences Between Growth & Value Investing
The Duration Crisis: The light blue line shows the correlation between value stocks and the US Long Bond The navy blue line shows the correlation between growth stocks and ...