Warren Buffett’s Market Cap to GDP
"Be FEARFUL when others are GREEDY" –Warren Buffett: The chart below is Buffett’s favorite broad market valuation tool – Market Cap/GDP – a Kailash topic discussed here When stocks ...
Negative Cash Flow & The Problem with Paying High Prices for Systematic Dilution
Broken Business Models Our recent paper on Small Caps, The Low Price of High Quality, identified the market’s highest quality firms trading at reasonable valuations That work also documented ...
The Low Cost of High Quality: Russell 2000
Introduction: This paper employs similar analytical structures to those used in our...
An Investment Strategy for High Quality Firms
If you are saving for retirement, have some investment goals and are looking to buy stocks we believe this chart is for you. Our last two newsletters documented the ...
What Is Value Investing?
A Primer for Novices: A Prelude to Our Series on the Best Value Investing Books Inefficient Markets: The Largest Market Cap Companies Can Often be Mispriced This paper will explain ...
What You Need Has Never Been Cheaper vs. What You Want
What You Need Has Never Been Cheaper vs. What You Want: The chart below shows the ratio of Consumer Staples to Consumer Discretionary stocks is now LOWER than at ...
The Case for Buying What You Know and Need – Staples and the Power of the Prosaic
Introduction: This paper adds to our recent research making the case that today is one of the most compelling times in history to adopt a simple dividend and income ...
Investing in Staples Made Simple
The Supremacy of Staples: A Triumph of the Mundane: The market is awash in stories about the wonders of day trading (h/t Ramp Capital tweet) egging the inexperienced to ...
Multiple Expansion and Stock Performance: A Tale of Two Markets
Multiple Expansion: A Tale of Two Markets The NAVY BLUE BARS show the price-to-sales ratio of stocks in 2010 by decile, from least to most expensive The LIGHT BLUE ...
Performance of Loss Making Stocks
Losing Money is No Way to Make Money: In our recent papers on quality investing and income investing, Kailash is pounding the table advocating investors avoid the IPO/Tech mania ...
Income Investing: Staples & IT – How Dividend Investing May Halt the Speculative Quest for Quick Gains
Introduction: This paper builds on our recent work highlighting that many of the market’s highest quality firms are trading at discounts to the broad market. The exhibits that follow ...
High Quality and Income Stocks at Low Prices
High Quality & Income at Low Prices: Index mania has sent money into ever larger and more expensive companies The slides below show that our S&P 500, Russell 1000 ...
