White Papers2023-12-01T05:55:35+00:00

KCR WHITE PAPERS

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

Market Cap vs. Revenue: The Implications of 20x P/S Ratios

February 4, 2022|

The Chart Below Shows: • the market cap of just software stocks valued at over 10x price to sales is over $6 trillion • that means that software stocks priced at preposterous levels are now worth ~30% of US GDP • KCR thanks Scott McNealy for making investment decisions on stocks valued like this simple

Russell 2500 Growth Index vs Russell 2500 Value Index

February 2, 2022|

Past Performance Does Not Guarantee Future Results…. Particularly the RECENT Past. This paper makes the following three points: 1) The mean reversion in the 2500 benchmarks will continue, with growth falling sharply relative to value, 2) The reason for this is painfully simple in our view and 3) Allocators should move from index funds to active managers in the R2500G sector

Stocks Most like Enron Today, Free Enron Hat & Summary of Disaster

January 7, 2022|

Remembering the Risks of “The Smartest Guys in the Room”. We recently put out a two-part summary of Bethany McLean and Peter Elkind’s brilliant book The Smartest Guys in the Room. In an earlier piece, we quoted legendary financial historian John Kenneth Galbraith, who quipped that investors’ memories last “...at a maximum, no more than 20 years.” The KCR team agrees.

Enron Scandal Explained by Peter Elkind and Bethany McLeans’ The Smartest Guys in the Room

January 5, 2022|

Summary of Enron Smartest Guys in the Room: Bethany McLean and Peter Elkind wrote the national bestseller “The Smartest Guys in the Room.” The book catalogues the rise of Enron, the financial crisis that would eventually consume it and exposes the subsequent accounting scandal. We do not write this missive to celebrate the devastating losses created by Enron Corporation...

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