Investment Journal
Wells Fargo Post-Mortem
One of Saber’s limited partners manages a mutual fund, and he recently told me his mistakes often come when he picks stocks of lower quality or more complex companies that look cheap, instead of paying a higher price for a great business. He calls this being “too...
Berkshire’s Incremental Returns on Capital
I've written a lot about returns on capital, especially the importance of the returns a company gets on incremental retained earnings. The "returns on incremental capital" are critical in determining the ability of a business to compound its value. I recently did a...
Thoughts on Buffett’s Annual Meeting and Other Topics
I did a podcast with Tobias Carlisle recently, and one of the things we mentioned was the Buffett meeting and Berkshire Hathaway in general. I had a few thoughts I wrote after the meeting last month. Since I've had a few people asking my views on the meeting, I...
Phil Fisher’s Insight
I’m re-reading Phil Fisher's book Common Stocks and Uncommon Profits this weekend. I haven't read the book since 2006 and I noticed it on my shelf and decided to revisit it. I've always liked his common sense approach to investing for the long-term. He talks about how...
Why Traditional Value Metrics Haven’t Worked
Over the last five years I've heard a lot of value investors discussing how traditional "value stocks" haven't performed well for a long time. By value stocks, I mean the way they are traditionally defined (low price to book; low price to earnings, low EV/EBIT,...
History Rhyming or Is This Time Different?
The COVID-19 panic continues to wreak havoc on both the stock market and the economy, and the news continues to seemingly worsen with each passing day. In the midst of a crisis, it's imperative to maintain clarity of thought and a calm demeanor. This is difficult for...