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 ...
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 BARS show the price-to-sales ratio of stocks TODAY by decile, ...
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 and buy great companies with healthy dividends at low prices ...
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 ...
