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VALUEx Vail 2019

On June 12-14, my company, IMA, will host the eighth annual VALUEx Vail conference. I borrowed the idea for this conference from my friend Guy Spier after attending his conference in Zurich in 2011. (If you missed my thoughts from his 2019 conference, you can read them here). I must admit that there is a […]

Why Stock Investors Shouldn’t Watch Business TV

Listen on: iTunes | Google Podcasts | Online This article is Part 3 of a 3-part series discussing how investors can avoid acting irrationally. Read Part 1 and Part 2. Investors are prone to two opposing but equally debilitating fears: the fear of missing out when times are good, and the fear of loss when markets are volatile. These two fears have a […]

Want to Be a Better Investor? Stop Staring at Your Portfolio

Listen on: iTunes | Google Podcasts | Online This article is Part 2 of a 3-part series discussing how investors can avoid acting irrationally. Read Part 1 and Part 3. Investors are prone to two opposing but equally debilitating fears: the fear of missing out when times are good, and the fear of loss when markets are volatile. These two fears have a […]

Stock Investors: You Have Nothing to Fear but Fear Itself

Listen on: iTunes | Google Podcasts | Online This article is Part 1 of a 3-part series discussing how investors can avoid acting irrationally. Read Part 2 and Part 3. The stock market is not your friend. You want to approach it the same way the American president should approach a one-on-one meeting with the Russian president: Be respectful but cautious. He might […]

The Real Secret About Why Corporate Mergers Fail

Listen on: iTunes | Google Podcasts | Online Corporate acquisitions often fail for one simple reason: the buyer pays too much. An old Wall Street adage comes to mind: Price is what you pay, value is what you get. It all starts with a control premium. When we purchase shares of a stock, we pay a price that is within […]

Opioids Crisis & Drug Distributors

I don’t know anyone personally who has been affected by the opioid epidemic in the US. And I truly hope I never will. I don’t know if I would be able to maintain objectivity in my analysis of drug distributors and their involvement in this epidemic if I had experienced getting a call at night […]

This Stable Value Stock Is Built To Weather Market Storms

It is hard to say anything about McKesson that we have not said before — it is a high-quality business with extremely cheap shares. The pharmaceutical distributor should earn around $15 in 2020 and will IPO its technology business, which will unlock another $20-30 of value. McKesson stock is not just cheap — it’s incredibly cheap. […]

Beats & Misses, Seen & Unseen

Wall Street glorifies companies that beat quarterly estimates by arguing that the long term comprises a lot of short terms. But beating earnings estimates for a few consecutive quarters doesn’t necessarily lead to long-term greatness. It assumes that significant changes to the business are visible in the reported numbers. This is likely what General Electric executives […]

The Market Right Now Doesn’t Care How Fantastic Your Stocks Are

The Roman philosopher Seneca wasn’t talking about the stock market when he wrote that “Time discovers truth,” but he could have been. In the long run a stock price will reflect a company’s (true) intrinsic value. In the short run the pricing is basically random. Here are two real-life examples. Let’s say you had the […]

Why We Sold Apple Stock

December 2018 Our firm bought Apple shares for clients’ portfolios in 2013, and we are used to being a contrarian voice when it comes to the stock (read here and here) — we loved it when it was hated. Now we are contrarian again — this time going against the company’s faithful. Here are key […]