From The Impatient To The Patient
“The stock market is a device which transfers money from the impatient to the patient.” – Warren Buffett Q3 2020 hedge fund letters, conferences and more Avoiding A Stock Market FailureAs we enter 2021, it appears that Buffett had things upside down in 2020. The things which had gone up the most by the end of 2019, went up the most in 2020. We invest on behalf of clients who want to avoid stock market failure and history shows most investors are impatient and are like a car stalled on the railroad tracks. A picture of the most impatient investors/option traders tells the story: Fortunately, it...
Company-Specific Macroeconomic Multipliers
An interesting contrast was drawn on September 15, 2020 between Lennar’s (LEN) earnings call and statistics on revenue per employee at Apple Corporation (AAPL). Lennar described strong growth out into the future in a measured way, because they believe that the prior decade created a home supply deficit due to underbuilding. The same week, Bloomberg writer John Authors reported Apple was running $15 million of revenue per employee, a truly astounding number. According to the article, Apple’s market cap exceeds the entire FTSE 100 Index in London. What would macroeconomics say about the value of...