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 2021?
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 ...
Best Credit Card Stocks Today: Cheap Stocks with Low Expectations?
Top Credit Card Stocks: A Cheap Way to Capitalize on High Expectations, Part I Today’s Chart for The Curious shows the PE ratio of the S&P 500 minus the ...
Trading Strategies to Preserve & Grow Wealth
Drawdowns: “If you buy things you don’t need, you will soon sell things you need.” -Buffett Our first newsletter of 2021 suggested it might be a great time to ...
Sun Microsystems, The Greatest Quote & The Rise of the Reckless
Market cap of firms trading > 10x price to sales is now +$10 trillion Investors who paid 10x P/S to buy Sun Micro lost 95% of their money Sun ...