Author: Smead Capital Management

CNBC: Bill Smead on Weschler and Berkshire Hathaway

Buffett’s stock-picking lieutenant has a proven track record, but his hands are tied at Berkshire By Yun Li For more information go to www.cnbc.com. The information contained in this article represents SCM’s opinions, and should not be construed as personalized or individualized investment advice. Past

⟶ Keep Reading

Bloomberg Markets: Cole Smead, CFA on Oil

UAE Closes in on Oil Output Deal By Alix Steel and Guy Johnson For more information go to www.bloomberg.com. Stocks mentioned: CLR, COP, CVX, The information contained in this article represents SCM’s opinions, and should not be construed as personalized or individualized investment advice. Past

⟶ Keep Reading

2Q21 Newsletter: Stock Picking is Dead

Halfway through the year 2021, we must be reminded to “not confuse brains with a bull market.” These are the words we were taught back in the 1980’s. When all boats float, don’t think you are a genius because your boat floated. Investors in the S&P 500 Index, mega-cap tech stocks, momentum disruption stocks and a wide variety of success stories the last five years floated. The former kings of the stock market (active stock pickers) were pronounced dead. Goodbye Warren Buffett, John Templeton, Peter Lynch and all the others who were declared kings of stock picking.

⟶ Keep Reading

Value Investors are Still Rolling Stones

Most millennials have never seen an era where value has done well. The last 12 months seem like an aberration in their careers relative to the booming growth markets of the 2010’s. The investors that have witnessed value do well time and time again are more than likely baby boomers, not to count Charlie and Warren out (we never do). However, the silent generation is fewer by the day, though they have seen the tug-of-war in the value-versus-growth continuum more than future generations.

⟶ Keep Reading

Good Medicine at Bargain Prices

We have been long-term owners of Amgen (AMGN), Merck (MRK) and Pfizer (PFE) among the major pharma/biotech companies. We believe they trade at a ridiculous discount to similar companies in other industries. However, we think we understand why they were underperforming similar stocks and it was a self-inflicted wound. The industry allowed the media to define them as drug companies.

⟶ Keep Reading

The Rodney Dangerfield Housing Market: No Respect

Today’s housing market has done what few people expected and yet, like Rodney, “it don’t get no respect.” Many on Wall Street fear the future of this industry as we’ve risen to levels of homebuilding that we haven’t seen in a long time. Rather than looking at demographics, household financials and other data that points to a very bright future, they just call it crazy. They feel it’s a sugar-high phenomenon. Lastly, they think 50% higher homebuilding from here in the future is impossible. We will look at the data to explain that, as Rodney would say, there is no respect.

⟶ Keep Reading

Barron’s: Bill Smead on Lennar (LEN)

This Home Builder Stock Is a Buy. Here’s Why. By Andrew Bary For more information go to www.barrons.com. Stocks mentioned: LEN The information contained in this article represents SCM’s opinions, and should not be construed as personalized or individualized investment advice. Past performance is no

⟶ Keep Reading

Taking Lumps for Alpha

Now that investors are reconsidering active stock picking and are especially interested in value stock strategies, let’s analyze where excess stock market returns come from. Excess return, or alpha, comes in four basic ways. Alpha can come from stock selection, selection timing, concentration and long holding periods.

⟶ Keep Reading
Scroll to Top