The Process
Katsenelson Predicts
I find January to be one of the most difficult months for long-term investors. In the spirit of the fine American tradition of making New Year’s resolutions, we feel a need to make a resolution for the stock market in the form of a prediction.
Patience and More Patience
This market requires patience and more patience. Identify high quality companies you want to own, determine at what price and wait.
Creator of Incentives
When I was in the third grade, growing up in Murmansk, a city above the Polar Circle in (then) communist Russia, my buddy and I decided to start a business.
Uncle Al
I like Alan Greenspan, despite writing a critical article about him. It is hard not to admire the guy.
What we’ve learned…
If we learned anything over the last couple of months it is that we don't know the second and third derivative of how badly things will play out.
My Active Value Investing Book is out!
After a year and half, 2,000 hours of staring at my laptop, and much receded hairline, my book Active Value Investing (AVI): Making Money in Range-Bound Markets is done!
The Fed’s Irresponsible Move
The Federal Reserve under Mr. Greenspan’s leadership faced a tough decision in 2001. The post dot.com bubble had burst, the terrorist attacks followed and the economy was slipping into a recession.
London is Expensive
I just came from a week-long trip in London. I got to tell you, London (and probably all Europe) is tremendously expensive.
Flip Flopper?
The Almighty Bill Gross of Pimco has flip flopped on the direction of interest rates for the second time this month.
Fly, Don’t Buy Airlines or Why Big Banks Make Dumb Loans
Why would somebody ever give a loan or buy airline bonds of any country? I can understand buying distressed bonds or maybe a stock as a trade.
It Is Not the Cards You are Dealt; But is How You Play Them
Over a lifetime, active investors will make hundreds, often thousands of investment decisions. Not all of those decisions will work out for the better. Some will lose and some will make us money.
Dividends and Share Buybacks
Before the 1982-1998 bull market, dividends accounted for a very large portion of stock market returns. In fact, in the 1966-1982 bear market, they were the returns investors received while watching P/E compress under the market.
Discussion on Katrina
I think the Federal government is to blame in part for the level of destruction caused by the hurricane Katrina. This is not a political statement but rather an economical one; remember I am a capitalist pig (not a political one)!
Earnings Games
JeffMacke© and I usually agree on things. In our fundamental panel discussion at MIM2, I discovered that Macke and I disagree on the issue of management's earnings guidance.
Alcatraz: The Remedy for White-Collar Crime?
I propose all executives convicted of a white-collar crime serve their time at Alcatraz. Serving six months to a year would make an honest person out of even the most crooked offender.
