Commentary

Funding Unprofitable Growth

We have been reminding everyone that we believe we are unwinding a financial euphoria episode that Charlie Munger called the biggest of his career, “because of the totality of it.”

Commentary

The 2022-2023 Regime Change

The events that began with Thursday’s tumult in financial stocks and precipitated the FDIC takeover of Silicon Valley Bank and Signature Bank were swift.

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Musings from Buffett’s Letter

There were many good things to think about from Warren Buffett’s letter to shareholders which came out recently. In this piece, we’d like to drill down on two subjects that Buffett highlighted.

Commentary

Drilling for Oil on the NYSE

As a young stockbroker in the 1980s, I was very enamored with T. Boone Pickens.

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Ramblings From My Idol, Charlie Munger

On February 5, 2023, Charlie Munger sat down as the Chairman Emeritus of the Daily Journal Corporation (DJCO) to answer questions from shareholders and the public.

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A Sharpe Rebuke

We are closing in on what we think may be the question of the decade. If a majority of stock market capitalization in the US is passive or indexed, does this cause problems for stock markets?

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Recession Fear Investing

A recession is two consecutive quarters of economic contraction.

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4Q22 International Value Strategy

In 1817, David Ricardo developed his theory of comparative advantage to explain why countries engage in trade together, even when one country has an absolute advantage.

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Not the Cool Kids

As we start the year 2023, we are reminded of the profound poetry from the band, Echosmith, in the song, “Cool Kids.” It can teach us about what it takes to succeed in long-duration common stock investing currently.

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Unreliable Contrarianism

It appears to us at Smead Capital Management that investors are behaving in a way that will damage their capital and cause them to suffer stock market failure.

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Companies Still SOIL-ing Themselves

I was reminded in a recent read of Robert Hagstrom’s book, Warren Buffett: Inside the Ultimate Money Mind, how Warren Buffett and Charlie Munger define the economic earnings power of a business.

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Home Builders’ Sentiment

The Wall Street Journal reported last week that the National Association of Home Builders’ (NAHB) sentiment about the future was 33% and at its lowest since 2012.

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The Good News: Einhorn is Finkle

In the 1994 comedy film, Ace Ventura: Pet Detective, Lt. Einhorn is the female leading the Miami police’s investigation of the disappearance of the Miami Dolphin’s mascot, Snowflake.

Commentary

Humpty-Dumpty Stock Market

The era of the dynamic sales growth tech company, with a religious quality to its leadership, appears to be over.

Commentary

Dial P911 for Value in Porsche and VW

If you were walking down the street and saw a $100 bill just sitting near the curb, would you pick it up?