Investors should be looking to pick up stocks like Whirlpool and avoid assets like CryptoPunks NFTs, according to Jeff Henriksen, CEO and founder of Thorpe Abbotts Capital. Workers assemble washing machines at the Whirlpool Corp. manufacturing facility in Clyde, Ohio, U.S.Luke Sharrett | Bloomberg | Getty Images Speaking to CNBC’s “Squawk Box Europe” on Monday, the Virginia-based hedge fund manager said despite the dominant market narratives [...]
A Revival In The Performance Of Value Stocks Masks An Evolution In The Storied Investment Strategy The long-awaited rotation from growth to value has arrived. At least this is what many value investors believe. With this (potential) rotation comes a renewed debate about the future of value investing that will shape the philosophy’s evolution for years to come. Many stock market pundits and value investing advocates [...]
It has been a while since I have put pen to paper. Only a few months, but it feels like an eternity. The last time I did so, I discussed how the current structure of the stock market–driven as it is by quantitative and passive investing strategies–has caused more than its statistical share of herding behavior. The resulting biases and market structure, I argued, create opportunities that [...]
If you have never witnessed the formation of a bait ball, it is a sight to be seen. To protect themselves against predators, thousands of fish come together and create a gigantic gyrating ball. It is majestic and at times seems to take on a life of its own. The idea is a simple one. Safety in numbers. Any deviation from the ball is asymmetrically penalized. This [...]
What tighter regulation might mean for Google’s all-conquering advertising business. UE-GOOGLE Valuing Alphabet, Google’s holding company, requires multiple hats. There are many moving parts to consider as well as a lot of negative headlines. My preferred method of analyzing Alphabet’s stock price is to place a reasonable value on all of the company’s non-advertising-related businesses (such as its infamous Other Bets, YouTube, and cloud-computing [...]
The economic nature of share repurchases defies simple generalizations. Countless times I have heard beliefs expressed that mischaracterize the effects that buybacks have on value creation for companies, their stakeholders and the economy. This misunderstanding creates an environment where false premises can lead to bad policy proposals. Give and Take GERD ALTMANN Read complete article
Financial markets are a fascinating social mechanism. When they work well, large numbers of buyers and sellers come together and employ a diverse set of investment philosophies to debate an asset’s intrinsic value. If investors do this without bias, the prices that emerge are, at least on average, correct. Prior to going public, Lyft was priced by one style of investor – the growth-oriented venture capitalist. [...]
What the Bulls See In Facebook And What Should Worry Us In season one of Billions, Bobby Axelrod advises a new analyst, Ben Kim, that to truly understand a company, sometimes, you have to put it in your mouth. I couldn’t agree more. I have recently been thinking a lot about Facebook. There is a bull case for the stock that cannot be taken lightly and it’s [...]
Everything Not Zen: Finding Return Opportunities Amidst Renewed Market Volatility - Part III A guy walks into a bar, orders a beer, and declares that the Yankees are going to win the 2019 Pennant. This is their year and there is no doubt. Another guy walks into a bar, orders a beer, and declares that the Yankees are going to win the 2019 Pennant…with 48% probability. [...]
Everything Not Zen: Finding Return Opportunities Amidst Renewed Market Volatility - Part II Perceptions ANIKA HUIZINGA A proper balance between bulls and bears, between risk aversion and risk seeking behavior, leads to something like market Zen. When all views are incorporated in such a way, market prices are pretty good estimates of fundamental value. In part I of this series (which you can find here), [...]
