Commentary

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?

Commentary

Recession Fear Investing

A recession is two consecutive quarters of economic contraction.

Commentary

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.

Commentary

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.

Commentary

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?

Commentary

Newton’s Law of Stock Market Motion

Newton's First Law of Motion states that an object in motion tends to stay in motion unless an external force acts upon it.

Commentary

Humming All the Way to Reno

The investors in the Smead International Value Fund have asked our team at Smead Capital Management what looks attractive today.

Commentary

At This Moment

We are at the point in this nasty bear market where those who are buying the glamour tech stocks of the last ten years (on the way down) are at a crucible.

Commentary

First World Problems

The investors of Smead Capital Management have been hearing us talk about ‘First World Problems’ recently.

Commentary

The Strategic Squeeze

Thanks to reading Spencer Jakab’s book, The Revolution That Wasn't, we've been thinking about what it is like to be in a short position when overwhelming demand affects prices.