Last month I wrote to you about the deleterious effects of the central-bank liquidity bubble on deep-value opportunities. Deep value stocks aren’t the only casualty of excess central-bank liquidity, though. There is a more ominous problem brewing in markets. Global central banks’ hair-trigger approach to providing monetary stimulus at every hint of market turmoil has institutionalized the idea … [Read more...]
Client Letter – June 2017
Many of our long-time clients may recall the name Longleaf. For those who do not, Longleaf is a family of mutual funds managed by Southeastern Asset Management. Southeastern is a boutique value manager. When mutual funds played a bigger role in our investment programs, we invested in the Longleaf funds for clients. We’ve long considered Longleaf to be among the good guys in the mutual fund … [Read more...]
Client Letter – May 2017
I’ve written critically of Amazon.com’s profitability in past letters, but my criticism of the company doesn’t extend to Jeff Bezos, Amazon’s CEO. Bezos may have run Amazon.com for years without turning a meaningful profit, but there is no denying the guy is brilliant. In the span of two decades, Bezos turned Amazon.com into one of America’s largest companies. He continues to disrupt and decimate … [Read more...]
Client Letter – April 2017
In 2015, when the stock market squeaked out a small gain, it was a handful of the most speculative names (the so-called FANG stocks, Facebook, Apple, Netflix, Google) that accounted for the entire return on the S&P 500. If your portfolio didn’t include FANG stocks, it might have been down in 2015. Year-to-date, stocks are tracking a similar path, with a handful of names driving the lion’s … [Read more...]
Client Letter – March 2017
I was recently offered home tickets to see the Boston Celtics. As a family, we had not attended a Celtics game, so we decided to accept the tickets, leave the warmth of Naples, Florida, and journey our way to the freezing temperatures of Massachusetts. The game was great fun and the Cs easily beat the Timberwolves by 13 points. While in Boston we also headed out and about, which included a stop … [Read more...]
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