A monthly, deep dive, and rigorous piece identifying:
Extraordinary Value Spreads, Mispriced Quality, and Behavioral Errors

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.

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.

Revisiting KCR’s Long-Running Thesis on the Opportunity in Oil Angst

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.

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.

The Case for GARP Investing: Summary & Key Points...

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...

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...

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 ...

We believe investors should be open-minded about old-fashioned energy for two reasons. First, we have a growing conviction in oil companies’ capital discipline. Second, while commodity prices may rise due ...

A Faustian Bargain worth Revisiting In this paper we update our work The Siren Song of Growth: Why Investors Willfully Set Sail for the Rocks and make the following points: ...

The Low Value in High Volume Last week’s Quick Take highlighted that retail investors were being sucked into speculative trading. This piece substantiates the following: High turnover stocks have only ...