Nick Sleep beat the market by a mile for 13 years His fund returned 921% vs. 117% for the MSCI world index, which is almost a 9X better result than the index. Sleep compounded shareholders’ capital by 20.8% annually (18.4% net of fees) while running Nomad Capital. This is a spectacular result. Let’s dive into
On the surface, it would seem that a dollar earned is a dollar earned, and that shareholders benefit the same from both dividend and share buyback strategies. But the math behind how those earnings translate to shareholder returns can be quite staggering. Warren Buffett himself covered this topic in more than one shareholder letter, but,
The chart below shows the percentage of the Russell 3000 that either lose money or can’t afford to pay the interest expense on their debt. We dubbed this group the “Loss Makers and Zombies.” Over 33%, or ~1,000 of America’s listed companies qualify. This is happening against a backdrop of corporate profit margins shattering the
I’ve decided to make the first pick of my new “paid” tier free to give everyone a sense of what they can expect. So let’s get into the idea I like the most this month. When deciding which name I wanted to highlight, my mind kept wandering back to the idea that I have recently
Comparing the P/E ratio of the S&P 500 with the P/E ratio of the rest of the world shows a record difference, see chart below. In other words, US equities have never been more expensive relative to international equities. Source: Bloomberg, Apollo Chief Economist (Note: BEst PE ratio using 12-month forward earnings; BEst = Bloomberg
‘Healthcare, Staples, and Energy are typically the best-performing sectors in the months following the Fed’s first cut.’ https://dailychartbook.com/p/daily-chartbook-361 via @dailychartbook
Quarterly CAPE Ratio Updates Median CAPE Ratio: 1625% cheapest: 1125% most expensive: 26 Average of Foreign Developed: 19Average of Foreign Emerging: 15 We’ve mentioned this note in every update but it bears repeating. We use the MSCI Investable Market Indices (IMI) below, but MSCI also calculates their Standard Indices too. IMI includes more companies and
Warning: The following column is about a microcap company. Microcaps by definition can be illiquid and experience wild gyrations. It is important to do your own due diligence, rely on your own research and understand that microcaps can be very volatile. Please proceed reading using your highest levels of caution. That being said… Grown Rogue
With asset prices in general being very rangebound, inexpensive dividend-paying assets continue to be an attractive option. And my benchmark example for that continues to be Enterprise Products Partners (EPD). Oftentimes, the best places to put new capital is into investments that are already in your portfolio. Enterprise operates over 50,000 miles of pipelines as