Market Insights

Leverage Cycles, Banks and Our Outlook for the Remainder of 2019

“After a ten-year post-financial crisis period of consistent underlying conditions for equity investing, fundamentals are shifting.”

A Discussion of the U.S. Debt Situation: Consumer and Government Debt

“The national debt is akin to student loans – while not an immediate concern, it could become a major problem.”

Consumer Debt

Last week, we discussed the state of the corporate leverage. Consumer debt is also an area of concern, but to a lesser extent than corporate debt. Domestic consumer debt is...

A Discussion of the U.S. Debt Situation: Corporate Debt

“Debt, we've learned, is the match that lights the fire of every crisis. Every crisis has its own set of villains - pick your favorite: bankers, regulators, central bankers, politicians, overzealous consumers, credit rating agencies - but all require one similar ingredient to create a true crisis:...

Statutory Data: A Trove of Valuable Bank Information

“First-level thinkers look for simple formulas and easy answers. Second-level thinkers know that success in investing is the antithesis of simple…Your thinking has to be better than that of others…you must find an edge they don’t have. You must think of something they haven’t thought of, see things...

The Many Benefits of Analyzing Non-GAAP Data, Part 3 of 3

Over the past two weeks we have explored the concept of using other types of data (non-GAAP) to enhance our analysis on publicly-traded companies. This week, we focus on Consumer Companies. 

The Many Benefits of Analyzing Non-GAAP Data, Part 2 of 3

Last week, we began to explore the concept of using other types of data (non-GAAP) to enhance our analysis on publicly-traded companies. While the focus was on insurance companies, this week we are focusing on another industry we enjoy getting under the hood of: Banks. Next week, in the third and...

The Many Benefits of Analyzing Non-GAAP Data, Part 1 of 3

As an investor, if you had access to more detailed information other than the GAAP (Generally Accepted Accounting Principles), wouldn’t you use it? GAAP data provides a uniform set of rules and formats to facilitate analysis by investors and creditors, and in this regard, it has greatly helped...

Why Invest in a Shrinking Financial Sector?

As value investors, one of the reasons we love investing in financials is because it has become an unloved segment of the market. Observe the following graph, which shows how the financial sector has shrank as an overall piece of the S&P 500 Index since the Global Financial Crisis:

Is Firm Culture Important? Why Do We Invest Along Shareholders?

Portfolio Managers John Gillespie, Jason Kish and Kevin O’Brien sat down and answered 11 questions regarding the team’s unique value-investing philosophy, lessons learned from past experiences and thoughts on running their business. In today's blog, they answer two questions regarding the...

Did You Know FAANG + Microsoft = Nearly 20% of the S&P 500 Index?

Many investors have followed the rise of the FAANG stocks (Facebook, Apple, Amazon, Netflix, and Google (Alphabet)) during this economic cycle, but many are unaware of just how large a piece of the S&P 500 Index these five companies have become. If you include Microsoft, which boasts a market...