A massive amount of stock market capitalization is tied up in companies based on both their potential market share and hypothetical future profits. The popular arguments in their favor come from looking at a company’s total addressable market (TAM). Sky high price-to-earnings ratios and massive capitalizations are common in companies with a large TAM as we finish up 2017.
As famed market strategist Richard Bernstein has pointed out, investors should pattern common stock selection after the investment style of the Mafia. What causes the Mafia to get such good returns? How do they spot opportunities? Why should we as investors in publicly-traded common stocks emulate their behavior near the end of 2017?
All major financial euphoria episodes hold aspects in common. Among our favorite books on investing is John Kenneth Galbraith’s A Short History of Financial Euphoria. More than any other economist, we admire his understanding of the connection between the securities markets and the economy.
This week, Part III covers the controversy surrounding North Korea’s dynastic succession, the end of the Cold War and the ideological issues with Deng Xiaoping. Finally, we recap the key insights from this history and the impact on American policy toward the DPRK, concluding with market ramifications.
Last week, we examined the Minsaengdan Incident and the onset of the Korean War. This week, we continue our series on China and North Korea, discussing the final phase of the Korean War and the ceasefire, the introduction of Juche and the impact of the Cultural Revolution. Next week, we conclude with the controversy surrounding the Kim family’s dynastic succession, the end of the Cold War and the ideological issues with Deng Xiaoping. We will recap the key insights from this history and the impact on American policy toward the DPRK, concluding, as always, with market ramifications.
The first time I read Forbes magazine was in 1980 as a brokerage trainee in New York City. I was fascinated by the company stories and the way the top investment disciplines were analyzed. In the 100th Anniversary Issue—published in September 2017—over 100 successful business and investment people wrote a short essay.
Many well-regarded experts have weighed in on the length and the pricing of common stocks eight and one half years into this bull market. They range from the dire warnings of perma-bears like Marc Faber to more reserved warnings from Howard Marks and Robert Shiller.
We begin our study of the historical relationship between North Korea and China, including a review of the Minsaengdan Incident and a broad examination of the Korean War.
On October 18th, the Communist Party of China (CPC) will meet for the 19th Party Congress. China’s leadership for the next five years will be determined at this meeting. In this report, we offer a background on China’s government, focusing on the difference between de jure (what is the official structure of China’s governance) and de facto(how it really works).
In the Bible, Jesus arrives to help his friend Lazarus a few days after he had already died. His friends Mary and Martha were very disappointed because they thought all hope was lost. As the story goes, Jesus raised Lazarus from the dead.