Benjamin Graham, the father of modern stock analysis, was so brilliant that in his last semester at Columbia University, he received job offers from three of the university’s departments – English, Mathematics, and Philosophy. Instead of choosing any of these, however, he went to Wall Street in 1914 and achieved extraordinary results. Over the course […]
News
Fighting the Last Battle…
There are some pretty big problems in the world today. But just as we tend to ignore the positive (see Eric’s first page article), we also tend to miss the fact that slowly and without much fanfare things can change. While none of the problems outlined below are fully solved, they are seeing improvement. Illegal […]
The 2-Minute Thought: The Last Edition . . . And A Few More Thoughts
This is the last edition of The 2-Minute Thought. It’s time – and taking a break from the same format week in and week out often is a good idea. But first, a few random thoughts before going: Anders Hall, the head of Vanderbilt University’s investment office, said in a recent interview with SumZero that […]
Our Chocolate Recipe Pivots to the East…
Hooray – our annual Chocolate Dessert for this Holiday Season. And just to impress you with our effort, listen to this vetting process. Jordan Lafayette here at the office supervised a rigorous Test Kitchen to get to our final result. From early November two employees a week prepared a chocolate recipe. In early December we […]
Competition and Innovation in the Middle Kingdom…
Twenty years ago China was already an export juggernaut but it was difficult to see it becoming a consumer powerhouse. It did not have credit cards, banks were backward in their technology, there was no credit rating system, and above all there was no delivery system for internet shopping – no UPS or FedEx. Well […]
A Beautiful Mind…
You’ve all heard of the placebo effect, where a patient is administered a fake medicine without knowing and then shows signs of recovery. That’s interesting on its own, but would you believe that they are now running tests where patients are told that the pill they are taking is fake and the results still show […]
Is the Whole Greater Than the Sum of the Parts?…
As value investors, we spend our time trying to identify firms whose shares are mispriced by the market. This work often leads us to examine companies that are responding to a range of challenges such as rapid technological change or intensifying competition. Under these circumstances, managers often turn to acquisitions as the best path forward. […]
Shifting Back To The East …
That chart at the bottom is from a recent Economist article. It’s interesting how economic power has shifted first from East to West and now back to the East. In the early centuries China and India were the largest economies, then Europe became preeminent. America’s turn came in the 1900s and with the exception of […]
Tax Talk…
The new tax law is in effect and there are changes to be considered. Spoiler alert, tax discussions can be sleep – inducing. You are forewarned! The standard deduction – the amount that all tax filers can deduct from their income each year – was doubled to $12,000 for single filers and $24,000 for joint […]
Remember the Big Picture…
All seemed good when the S&P 500 reached an all-time high on September 20. But by October 29, we were 9.9% lower, with a lot of up and down in between. Gulp? Yikes? If the market has been unnerving you, we understand. For one thing, before October, we enjoyed some pretty smooth sailing, and when […]
Rising Rates – The Good, The Bad and The Ugly…
Investors sitting on cash over the last several years finally have something to cheer about. Interest bearing deposits have inched up steadily over the last year with many today yielding over 2.0%. Unfortunately, these higher rates are not good news if you are the U.S. government, one of the biggest borrowers around. U.S. debt now […]
The 2-Minute Thought: Handling Investment Pain
I really enjoyed a recent blog by Cliff Asness of investment firm AQR Capital. It’s called “Liquid Alt Ragnarök?” and it’s on how to deal with the intense pain of investments going badly. Liquid Alt is the name of AQR’s investment strategy. It’s explained in the paper, but that’s not the important part. The important […]
