Most Recent Stingy News
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| The Stingy News Weekly: May 10, 2024 |
| 05/10/24 6:34 PM EST | SNW |
| This week we have multiples, quality and value, small caps, and more |
| More SNW: The Stingy News Weekly: May 5, 2024 |
| The Stingy News Weekly: April 28, 2024 |
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| Valuation multiples |
| 05/09/24 5:04 PM EST | Value Investing |
| "the multiples of P/E and EV/EBITDA provide a similar signal. But there can be cases where two companies have similar P/Es and dissimilar EV/EBITDA multiples, or dissimilar P/Es and similar EV/EBITDA multiples. These differences are generally attributable to differences in underlying profitability, capital structure, or tax rates." [pdf] |
| More Value Investing: Quality, value, or both |
| Undateable |
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| Quality, value, or both |
| 05/09/24 4:34 PM EST | Value Investing |
| "For investors unwilling to compromise on both value and quality, we believe small caps are likely to present the most compelling opportunities." |
| More Value Investing: Undateable |
| Noisy factors |
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| Debt narrows what you can endure |
| 05/09/24 4:26 PM EST | Thrift |
| "once you view debt as narrowing what you can endure in a volatile world, you start to see it as a constraint on the asset that matters most: having options and flexibility." |
| More Thrift: Where it goes |
| Can the typical person become a millionaire? |
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| Undateable |
| 05/09/24 4:12 PM EST | Value Investing |
| "The small cap dating scene remains unattractive, in our opinion. However, for many consumer discretionary companies with debt, equity prices have fallen sharply, and valuations have become more attractive. That said, these aren't dream dates! Cyclical companies with debt often come with a lot of baggage and potential drama. Before committing and getting too serious, we recommend stress testing the balance sheet and cash flow by including periods with high unemployment and tightening credit conditions. And if alcohol is needed to stomach the risk, we suggest patience and waiting for a better match." |
| More Value Investing: Noisy factors |
| Japan's orphans |
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| Inflation revisited |
| 05/09/24 4:10 PM EST | Markets |
| "Regardless of the starting inflation trigger, we observed that oil and gold performed the best, in our opinion, with equities next. Copper generally had middling performance, TIPS delivered unsatisfying returns, and 10Y Treasurys were consistently the worst performer." |
| More Markets: Risk seeking vs. mitigating |
| Not scared of bears |
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| The forever renter |
| 05/09/24 4:03 PM EST | Real Estate |
| "Last month Zillow reported that there are now a record 550 'Million-Dollar' cities in the United States. These are cities where the typical home price is greater than $1 million. While nearly half of these Million-Dollar cities are in California, the New York metropolitan area has the most with 106" |
| More Real Estate: Rent or buy |
| Could you afford it? |
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| Momentum and clarity of trend |
| 05/09/24 3:46 PM EST | Momentum Investing |
| "Individual investors can utilize momentum strategies without incurring additional costs by incorporating momentum into trading decisions. For example, when rebalancing, they can delay purchases of assets with negative momentum and delay sales of assets with positive momentum." |
| More Momentum Investing: Momentum works everywhere |
| Breaking bad momentum trends |
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| Whose tax is it anyway? |
| 05/09/24 3:42 PM EST | Taxes |
| "I think it's easy to judge the rich and their tax avoidance strategies from the outside looking in, but much harder once you are in their shoes." |
| More Taxes: The myth of the mobile millionaire |
| Gains from corporate tax cuts |
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| The Stingy News Weekly: May 5, 2024 |
| 05/05/24 8:27 PM EST | SNW |
| This week is reserved for Mr. Buffett and his AGM. |
| More SNW: The Stingy News Weekly: April 28, 2024 |
| The Stingy News Weekly: April 21, 2024 |
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| Warren Buffett at BRK's AGM |
| 05/05/24 8:25 PM EST | Buffett |
| 7+ Hours of Buffett and Berkshire. [video] |
| More Buffett: Buffett's 2023 letter to investors |
| Warren Buffett's canvas |
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| The Stingy News Weekly: April 28, 2024 |
| 04/28/24 8:21 PM EST | SNW |
| This week we have Japan, golf, bear markets and more. |
| More SNW: The Stingy News Weekly: April 21, 2024 |
| The Stingy News Weekly: April 14, 2024 |
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| Risk seeking vs. mitigating |
| 04/28/24 1:44 PM EST | Markets |
| "Golfers often change their approaches mid-hole, mid-round, mid-season, and sometimes even mid-swing. It's unquestionably manic. Yet, golfer behavior pales in comparison to investor behavior." |
| More Markets: Not scared of bears |
| Invest for the decades |
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| Not scared of bears |
| 04/28/24 1:37 PM EST | Markets |
| "Bill Bernstein points to four such risks - deflation, inflation, confiscation and devastation. These are Bernstein's four horsemen of the economic apocalypse, all of which could do major, permanent damage to your portfolio." |
| More Markets: Invest for the decades |
| Sector neutrality in factor investing |
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| Bad financial decisions |
| 04/28/24 1:30 PM EST | Behaviour |
| "After running the numbers, I've come to realize that foregoing lottery tickets isn't enough to move the needle for the average American." |
| More Behaviour: Lucky vs. repeatable |
| Keep your investment plan on track |
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| Japan's stealth profit boom |
| 04/28/24 1:20 PM EST | World |
| "Today, roughly half of the Japanese companies have net cash balances, and almost none of their EBIT goes to interest there. By contrast, the lion's share of US 500 companies owe the banks money, and almost 15% of EBIT goes to lenders in America. Corporate Japan looks quite different today than it did a couple of decades ago, and we believe this has contributed to the bottom line. The magnitude of the financial statement impact of this transition for shareholders is roughly equivalent to eliminating headline corporate taxation entirely." |
| More World: Rule, Britannia |
| The right level of inflation |
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| Ray Dalio's famous trade is sputtering |
| 04/28/24 1:17 PM EST | Funds |
| "The only time risk parity was really successful was at the time of the Great Financial Crisis and that was really its heyday." |
| More Funds: Performance of the hedge funds |
| Diseconomies of scale |
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| The Stingy News Weekly: April 21, 2024 |
| 04/21/24 6:14 PM EST | SNW |
| This week we have Ray, sectors, the long term and more. |
| More SNW: The Stingy News Weekly: April 14, 2024 |
| The Stingy News Weekly: April 7, 2024 |
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| The quotations of chairman Ray |
| 04/21/24 6:07 PM EST | Management |
| "Modern postindustrial capitalism can endow vast amounts of wealth upon individuals. When the financial media, desperate for advertising revenue, deifies successful businessmen this frequently divorces them from reality, an effect amplified by lack of feedback from employees and associates petrified by their boss's power over them." |
| More Management: Return-to-office mandates |
| Find the bottleneck first |
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| Invest for the decades |
| 04/21/24 5:15 PM EST | Markets |
| "Even in one of the worst equity markets in history, someone who bought over time would've done okay if they had just stuck with it." |
| More Markets: Sector neutrality in factor investing |
| It's not the economy |
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| The myth of the mobile millionaire |
| 04/21/24 4:47 PM EST | Taxes |
| "The notion that rich taxpayers will flee if the state comes for their money is mostly fiction." |
| More Taxes: Gains from corporate tax cuts |
| Spiderwebs |
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