1Q25 International Value Strategy Newsletter: Fur Coats in July
[…] Warren Buffett once said that the stock market was formed to move money from those who are impatient to those who are patient. We look ahead in these businesses because the capital structures are not in a near-term crisis. We believe they are ready to weather this. However, we think the scarcity of capital willing to invest in places like oil and gas and other commodity interests will benefit the forward returns of these companies and, thus, us as shareholders. Think of it like you are us living in the desert. You go to the mountains in July and buy your fur coat at a big discount. You full well know that you will not be using it for months. When winter hits, you pull it out, and you are excited for cold temperatures and possibly snow – you prepared for this moment. We believe the same thing could be true for our international common stock portfolio.
