November 2017
The municipal bond market is not as glamorous as something like Bitcoin, but it sure is essential for all of us. When our cities build schools or roads, they generally don’t pay for them via a cash surplus. These public functions are financed through bond issuances backed by promises and pledges. For something like a...
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Dear Investors, Let’s go back to 2010 for a moment.  This was a time when the memories of the Financial Crisis and the collapse of stocks had most market participants clamoring for other types of investments.  Why would anyone want to buy Johnson & Johnson (JNJ) at 12 times earnings (earnings have nearly doubled and...
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Dear Investors, I thought it would be helpful to shed a little bit of light on our thinking and how we look at our current investments.  We’ve done this a few times in the past and it has been quite fun and profitable to see how things have turned out.  Often you’ll find that things...
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Dear Investors, Often we are asked why we don’t own the glamour stocks such as Amazon or Nvidia, which seem as though they can only go up in today’s market.  While both Amazon and Nvidia have incredible appeal right now and tremendous growth prospects, that doesn’t mean that they are necessarily great investments at current...
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Dear Investors, Last Thursday, AGO came out with very strong earnings!  Book value continues to grow and the company continues to be profitable, despite the fact that AGO increased reserves for Puerto Rico credits by the largest amount yet.  The stock has been hit pretty hard lately as there is a short seller that has...
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Dear Investors, I thought it would be helpful to look at some important market valuation metrics to give you a perspective of what type of market we are in. Shiller (Inflation-adjusted) P/E: 31.4.  The Shiller P/E is 86.9% higher than the historical mean of 16.8.  This implies a future annual return of -2.5%.  The only...
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