Money and Finance
- Seth Klarman: Adopt An Absolute-performance Orientation
From Margin of Safety:Most institutional and many individual investors have adopted a relative-performance orientation...They invest with the goal of outperforming either the market, other investors, or both and are apparently indifferent as to whether...
- Broyhill Annual Letter
Link to: Broyhill Annual Letter: I'm a Little CrackpotLast year was a lot of fun for stock investors and our equity portfolios enjoyed the ride, performing exceptionally well on an absolute basis and even better on a risk-adjusted basis. The Broyhill...
- Bridgewater On An Ugly Inflationary Deleveraging
I thought this was an interesting quote to keep in mind in light of the Fed's open-ended QE announcement today. If we ever start to reach “that phase”, someone please remind me of this excerpt. From a Bridgewater piece with the title “Asset...
- East Coast Asset Management's Q3 Letter
Found via Market Folly.We live in a post credit bubble world. When the bubble popped in 2008, a meaningful percentage of the excess debt was transferred through bailouts and bankruptcies from over-leveraged businesses and individuals to government balance...
- A Template For Understanding What’s Going On - By Ray Dalio
I provided a link to this in a previous post, but I thought I’d also give it its own post as I believe this paper from Ray Dalio is one of the most important things I’ve read all year. As Dalio mentions, there is a big difference between a normal...
Money and Finance
East Coast Asset Management's Q4 Letter
Found via Market Folly.
On behalf of our entire team at East Coast, I want to extend to you and your family our sincere wishes for health and prosperity in the new year. Although we would love to start the year reporting that the equity market turbulence is behind us, we are expecting volatility to persist. Continued deleveraging of the global economic system coupled with heightened political inputs will fuel fear of the unknown. Our best absolute performance years have rarely been born out of a cheery consensus, thus this prognosis may not result in anemic returns. While an emotional “all clear” sign remains elusive for investors, we are finding the environment attractive for purchasing equity of competitively entrenched businesses.
We observe a general misclassification between uncertainty and risk. Looking forward, we also anticipate the general perception of “risk” versus” risk-free” assets will change. Central bank intervention to mitigate the effects of the inevitable deleveraging cycle will raise the cost of capital and compromise the value of paper currency. We expect this could be a disappointing realization for those seeking long-term shelter in cash and bonds. We will share some insight on these observations in this year-end letter.
- Seth Klarman: Adopt An Absolute-performance Orientation
From Margin of Safety:Most institutional and many individual investors have adopted a relative-performance orientation...They invest with the goal of outperforming either the market, other investors, or both and are apparently indifferent as to whether...
- Broyhill Annual Letter
Link to: Broyhill Annual Letter: I'm a Little CrackpotLast year was a lot of fun for stock investors and our equity portfolios enjoyed the ride, performing exceptionally well on an absolute basis and even better on a risk-adjusted basis. The Broyhill...
- Bridgewater On An Ugly Inflationary Deleveraging
I thought this was an interesting quote to keep in mind in light of the Fed's open-ended QE announcement today. If we ever start to reach “that phase”, someone please remind me of this excerpt. From a Bridgewater piece with the title “Asset...
- East Coast Asset Management's Q3 Letter
Found via Market Folly.We live in a post credit bubble world. When the bubble popped in 2008, a meaningful percentage of the excess debt was transferred through bailouts and bankruptcies from over-leveraged businesses and individuals to government balance...
- A Template For Understanding What’s Going On - By Ray Dalio
I provided a link to this in a previous post, but I thought I’d also give it its own post as I believe this paper from Ray Dalio is one of the most important things I’ve read all year. As Dalio mentions, there is a big difference between a normal...