Nervous about the high-flying valuations of technology stocks and interested in more attractively valued sectors? Two of our three most popular blogs of 2020, below, tackled these themes, while the third featured a popular podcast featuring our founder John Gillespie and how he wound up starting the firm.
Podcast #1 – The Prospector Story with John Gillespie
There is a story behind every person.
Prospector’s founder John Gillespie joined Havener Capital Partners founder Stacy Havener, to tell us about his story. In this podcast, Mr. Gillespie walks us through his own journey, which started with a Wall Street Journal subscription while he was in college and eventually led to him brushing shoulders with insurance legend Jack Byrne (ex-GEICO CEO).
Growth Stocks: Widest Valuation Gap in 20 Years
Multiple expansion has been a tremendous contributor to the outperformance of growth stocks since the Global Financial Crisis. Has it gone too far?
The below chart illustrates the valuation differential between deep value and high growth stocks since the late 1980s. One can see that the difference today is as wide as it’s been since the dot-com bubble in the early 2000s. It’s also important to remember how truly ridiculous the valuations for internet-related companies were during that point in time, and how today, it is again these same types of companies that are driving the disconnect in valuations.
Banks in 2008 Versus 2020: This Time Part of the Solution
During the Financial Crisis, banks were nearly responsible for the collapse of the financial system given excess leverage, toxic balance sheets, mismanagement, and questionable business practices. In the years that followed, banks were justifiably blamed for the financial turmoil and faced unprecedented public and political scrutiny, along with a wave of new regulations intended to prevent another crisis.
However, in this COVID-19 pandemic, banks have become a key player in remedying the economy rather than being the root of the problem.