A Tight Labor Market Returns the Upper Hand to American Workers
A Tight Labor Market Returns the Upper Hand to American Workers - The always wonderful John Authers put out a recent piece on inflation. Discussing comments out of the UK, he observed, “I cannot remember a central bank of a large, industrialized country being this negative about its own economy.”
Market Neutral Strategy: Transcript & Video
At KCR, we believe in solving problems and one of the greatest issues we hear from subscribers is how to compound...
Economic Cycles and Mean Reversion
In 1999, Warren Buffett gave a rare explanation of why he felt the stock market would generate poor returns for investors over the long haul. He used simple arithmetic to show that elevated valuations and profit margins made equities vulnerable. The piece was 9 pages, over 4,000 words long, and had a single exhibit.
Consumer Staples Sector: A Speculative Refuge
Protecting & Growing Wealth in the Age of Uncertainty - From 2017 - 2020, speculative trading on predatory apps like Robinhood became a true stock market mania. The catastrophic misallocation of capital was, briefly, a very profitable endeavor. We did not flinch.
What Is Accounting Quality and Why It Matters
A Quick Walk Through the Recent Age of Miracle, Wonder & Other Lies - It has been a wild couple of years for financial statements. And by “wild,” we mean the quality of financial accounting information hit lows we could not have imagined. Let’s start with the basics.
Undervalued Energy Stocks: The Case for Adding Exposure
Starting in May of 2020, KCR’s research team wrote nearly a dozen pieces making the case for oil. On September 8th, we published Oil Company Stocks to Buy, which summarized our work up to that point and pounded the table for investing in oil stocks. With oil trading below $70, we led out by explaining that oil and natural gas commodity prices did not need to rise to turn oil and gas stocks into powerhouses for investors.
Bear Market History & the Lessons of Losing Money
This piece is designed to add color to our Bear Traders post, which showed the five largest market declines since the 1960s. That piece explained the brutal path to getting back to break-even across the history of bear markets using the S&P 500.
Democratizing Finance: Agency Problems and Investment
This work was inspired by UCLA Professor Michael Brennan’s efficient autopsy of the dot.com bubble. Published in 2004, the piece broke down the mania that led to the historic bubble in 2000. A misplaced belief in Efficient Markets, agency problems on Wall Street, and weak accounting rules figured large in his work.
Growth at a Reasonable Price: Is GARP Investing a Forgotten Asset Class?
The Case for GARP Investing: Summary & Key Points...
Growth vs Income Investing: Why Choose?
Are Some of The Best Blue Chip Stocks in the S&P 500 Financials Sector? In light of our recent pieces, “Debt to EBITDA Ratios: The Spiral Higher Continues” and...
The Next US Financial Crisis: The Problem with Expensive Stocks and High Leverage
Our recent piece Debt to EBITDA Ratios: The Spiral Higher Continues documented the explosive growth in leverage using aggressive accounting to fund deals. This piece intends to...
Who is the Next Amazon? This Post Will Change Your Life
Financial Freedom from A Simple Formula By KCR standards, this post is somewhat wicked. For long-time readers, we hope the following creates a grin. For anyone new, we hope ...
