The world is becoming desperate about deflation

The Great Recession may be over, but eight years later we can still see the deep scars and unhealed wounds it left on the global economy. In an attempt to prevent an unpleasant revisit to the Stone Age, global governments have bailed out banks and the private sector. These bailouts and subsequent stimuli swelled global Read more about The world is becoming desperate about deflation[…]

Time for an All-Terrain Investment Portfolio

As investors today we feel something like a traveler preparing to drive across an unknown continent. A look in the rearview mirror tells us we should pick a race car, and if the road continues to be as it has been, then our trip may be fast and uneventful. But what if the road that Read more about Time for an All-Terrain Investment Portfolio[…]

The Values of Value Investing

Let’s think about the bible of value investing — Ben Graham’s 1949 The Intelligent Investor. Graham spent a lot of time talking about cheap stocks. He defined them as the ones that trade at single-digit price-earnings multiples, trade at a discount to book value, or trade below their cash value (net-nets). Graham placed great emphasis Read more about The Values of Value Investing[…]

Here’s what You Need to Know about Discovery

Discovery is a media company that owns some of the most popular TV channels – Discovery, TLC, Animal Planet, Oprah Winfrey Network (OWN), ID (crime channel), Eurosport among others. Discovery stock has been scratching multiyear lows because of millennials.  If you are reading this and you are between 19 and 35 years old – it’s Read more about Here’s what You Need to Know about Discovery[…]

SoftBank CEO Banks on Exponential Growth

I am about to go out on very thin ice. I am a value investor, but I’ll probably get banned from the value community for what I am about to say: Current valuations don’t mean much for companies in industries that are entering an exponential growth phase. As I type this, I catch myself thinking Read more about SoftBank CEO Banks on Exponential Growth[…]

The Pharma Stocks We’re Buying Now

Last week I explained why my firm is investing in pharmaceuticals stocks, despite the sector being a favorite punching bag of politicians. I noted that we have recently added to our existing positions in Amgen, Allergan, and Gilead Sciences, and I promised that I would unveil two new positions this week. Drumroll, please: Mylan Pharmaceuticals Read more about The Pharma Stocks We’re Buying Now[…]

SoftBank’s big plan for a smarter internet is brilliant

A few months ago SoftBank Group announced that it would be raising $100 billion to invest in Son’s vision of the singularity. (That is more than the capital of the entire venture capital industry.) Singularity is the point when computer intelligence surpasses human intelligence, and Son, SoftBank’s founder and CEO, believes we are just 30 years Read more about SoftBank’s big plan for a smarter internet is brilliant[…]

Searching for Yield? Better to Look for Humility and Patience

The following is an excerpt from Investment Management Associates’ second-quarter letter to investors. The Great Recession may be over, but seven years later we can still see the deep scars and unhealed wounds it left on the global economy. In an attempt to prevent an unpleasant revisit to the Stone Age, global governments have bailed Read more about Searching for Yield? Better to Look for Humility and Patience[…]

Why do I torture my kids … with classical music?

Lately I’ve been pondering on this question. At first, it was a subconscious decision. Somewhat by inertia, I was following in the footsteps of my parents. That’s what they did, and that’s what I’m supposed to do. However, I realized recently that I am re-gifting a gift. Instilling a love of classical music is one Read more about Why do I torture my kids … with classical music?[…]

Gilead, Buy HIV, Get Hepatitis C for Free

We spent a lot of time this quarter talking to our colleagues in the investment industry, soliciting “the other side” argument for Gilead, trying to understand what we are missing about this stock. As we suspected most people cannot overcome the confluence of two business models inside one company: Gilead’s growing, annuity-like HIV business and Read more about Gilead, Buy HIV, Get Hepatitis C for Free[…]