Bill Miller Loving Life in the Wilderness

Institutional Investor recently published a profile of former Legg Mason “investing god” Bill Miller, whose career hit a bump in the road after the financial crisis—when his signature fund lost two thirds of its value and investors ran for the hills. But Miller is back in the game with his own firm, Miller Value Partners, although managing much less money than he used to. His current fund, Miller Opportunity Trust, ranks in the top 1… Read More

Founder of Winton Capital Talks Artificial Intelligence

A Barron’s article offers an interview with David W. Harding, who founded Winton Capital in 1997 and has grown the fund company to nearly $27 billion in assets in 8 offices around the world “by deploying high-powered computers to crunch data and pick up potential trading signals and ascertain patters in markets.” In the interview, Harding “eagerly discussed artificial intelligence,” the article says, which he believes is “overhyped.” Here are some highlights: The idea that… Read More

The Inversion Worth Worrying About

In a December article for Bloomberg, columnist Nir Kaissar argues that, albeit troubling, all the hype about a potential yield curve inversion is “overdone, at least so far.” Instead, he asserts, investors should be watching the difference between the earnings yield on stocks and the yield on cash, because, “when the earnings yield has dipped below the cash yield in the past, stocks were in for a rough ride.” Kaissar cites the first such recorded… Read More

Spy Satellites Offer an Edge on Business Insights

A growing number of start-ups are turning high-altitude surveillance, once the domain of global superpowers, into a business. This according to a recent article in The New York Times. “Businesses will not be able to hide from competitors or regulators or watchdogs,” said Mark Johnson, co-founder of satellite information start-up Descartes Labs, adding, “They need to realize that their traditional competitive advantage—information—will be available to everyone.” The article cites data from research firm Euroconsult that… Read More

Hulbert on Yearly Performance Rankings and What Investors Should Know

In a recent article for The Wall Street Journal, MarketWatch senior columnist Mark Hulbert argues that the “annual performance rankings of funds or investment newsletters that appear every January are a siren song, tempting us with the prospect of mouthwatering gains but often leading us to financial pain.” Hulbert supports his case using Morningstar data that shows, if you had invested one year ago in the top-ranking fund (2017 calendar-year returns of 68.9%), you would… Read More

Housing Bear Predicts a Rough 2019

James Stack, who forecast the 2008 real estate crash as well as last year’s housing slowdown, says that “housing could be heading for its worst year since the last housing crash,” according to a recent article in Bloomberg. Stack warned: “Expect home sales to continue on a downward trend in the next 12-plus months. And there’s a significant downside risk to housing prices if a recession takes hold.” Last January, the article reports, “Stack was… Read More

Learning from Buffett’s Performance

In my last article, I looked at the stocks owned by Warren Buffett and Berkshire Hathaway and asked the question, “How Active is Buffett’s Portfolio?”. As we found out, the answer is very active in terms of how different the equity portfolio looks vs. the broader market index. The combination of Buffett’s portfolio and investing acumen has translated into one of the best investment track records in history. There are some interesting observations we can… Read More

How Active is Buffett’s Portfolio?

By Justin J. Carbonneau (@jjcarbonneau) —  With a $500 billion market capitalization, Berkshire Hathaway is the fifth largest company by market cap in the U.S. stock market and the majority of the company’s value comes from three sources. The first is the 60 or so operating companies Berkshire owns and the future earnings power of those companies. The second is the cash on the balance sheet and the optionality to invest that in in the… Read More

Swedroe Offers Perspective to Panicky Investors

In an article for last month’s, BAM Alliance director of research Larry Swedroe offered some insight on how to weather potential market volatility using a balanced view of the current environment. “While the economic expansion is now 10 years old, expansions don’t die of old age,” writes Swedroe. “They die either because geopolitical risks show up or because the Fed tightens monetary policy, driving real rates to high levels to fight inflation.” Swedroe argues… Read More

Drunkenmiller and Warsh: Perspective on Fed Tightening

In an article for The Wall Street Journal, co-authors Stanley Druckenmiller (chairman and CEO of Duquesne Family Office LLC) and former Federal Reserve Board member Kevin Warsh argue that the Fed should suspend its “double-barreled blitz of higher interest rates and tighten liquidity.” “The Fed created quantitative easing as a novel crisis-response tool a decade ago,” the article explains. “It bought assets from the public and stocked them away for safekeeping. Market participants understood the… Read More