Sun Microsystems, The Greatest Quote & The Rise of the Reckless
Sun Microsystems Inc: A Lifetime Lesson in Valuation 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 Summary: Paying 10x ...
How to Learn About Investing in Stocks: Rule #1
KCR believes bear market strategies today suggest a speculative mania similar to the internet bubble. “Rule #1: Never Lose Money, Rule #2: Never Forget Rule #1” –Warren Buffett Don’t Pay High Prices for Firms that ...
Fast Growing Stocks & Profiting from Patience: Bullish America, Bullish Berkshire & Bearish the Index
Similar to the peak of 2000, people are wondering if Buffett & Munger have lost their touch? As documented by CNBC, Berkshire has underperformed the S&P 500 Index by 70% as rank stock speculation has gripped markets If you ...
Buy or Sell Tesla Stock? A Quick Answer to a Behavioral Question
Should You Sell Tesla Stock & The High Cost of “Anchoring” Anchoring, or the act of placing too much emphasis on an arbitrary number is a well understood human error in the field of behavioral finance[1] Headlines today are ...
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 are expensive relative to GDP the payoffs to investing in ...
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 dangers of cash burning firms trading at nosebleed valuations ...
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 generational opportunity to buy the highest quality Midcap firms at ...
What Is Value Investing?
A Primer for Novices: A Prelude to Our Series on the Best Value Investing BooksInefficient Markets: The Largest Market Cap Companies Can Often be MispricedThis paper will explain some of the basic value investing strategies. We realize there are endless ...
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 peak of the internet bubble Embracing emotions, the market ...
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 buy what are the hottest new Tech and clean tech ...
