Let’s start with some context. The current bull market is being driven by optimism about Artificial Intelligence (AI). The premise is that AI will radically improve economic productivity resulting in a massive economic boom. It began on the afternoon of…
If you’re a value investor, you need to take a hard look at software stocks. While I am not an expert on AI or software, the valuations have become so cheap that the risk-reward equation is now strongly in favor…
There aren’t always great things to do and sometimes we maximize our contribution by being discerning and relatively inactive. Patient opportunism – waiting for bargains – is often your best strategy…. You’ll do better if you wait for investments to…
There was a front page article in The Wall Street Journal [SUBSCRIPTION REQUIRED] on Tuesday about the newest star investor, 24 year old Leopold Aschenbrenner whose hedge fund is called Situational Awareness. As far as I can tell, Aschenbrenner has…
When I was a young man, I was an avid reader of self help books. Anthony Robbins Unlimited Power and Awaken The Giant Within. Brian Tracy Maximum Achievement. Walter Doyle Staples Think Like A Winner. All of these books suggest…
One of the most common and misleading stock market metrics is the Price to Earnings or P/E ratio. Value investors frequently focus on this metric in their search for cheap stocks. Indeed, too many investors put too much emphasis on…
Most investors with a fundamental bent focus on the income statement. We want to know how fast a company is growing, what its margins are and how much money it’s making. This makes perfect sense. But the income statement consists…
The great Austrian Economist Ludwig von Mises was the first to pinpoint the cause of the business cycle: overexpansion of credit by the central bank. The difficulty for investors has always been in applying his insight in a pragmatic way…
My personal investment style is to look for long term secular trends that put the wind in the sails of an industry and then find the best companies in those sectors to invest in. The pet industry is one of…
In his excellent book The Most Important Thing (2011), Howard Marks lists twenty different “most important” things. Some example chapters are “second level thinking”, “the relationship between price and value” and “being attentive to cycles”. All of them are what…
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