Author: Smead Capital Management

Fortune: Cole Smead, CFA on Free Cash Flow of Netflix

Why Netflix Is Binging On Junk Bonds By Erik Sherman For more information go to www.fortune.com. Stocks mentioned: NFLX 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 guarantee of

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CNBC Asia Squawk Box: Bill Smead on Market “Crazy Stage”

Upcoming initial public offerings are ‘maniacal’: Investor Hosted by Christine Tan Stocks mentioned: EBAY The information contained in this tv appearance represents SCM’s opinions, and should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results. The securities

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1Q19 Newsletter: Stock Market Morality

Virtually every major athletic and business endeavor has been governed over long periods of time by a set of standards or morals. In basketball it helps to be tall, in baseball it helps to run fast and throw hard and in football it helps to be physically strong. In business it helps to have capital, sales, profits and free cash flow. We believe that the morality of common stock investing gets unhinged after an extended period of easy money and low interest rates.

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CNN Business: Cole Smead, CFA on Recent Tech IPOs

Uber IPO filing: What’s under the hood? By Richard Quest Click here to view. 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 guarantee of future results. The securities identified

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CNBC The Exchange: Bill Smead on Helping the Middle Class

Best way to help the middle class is a big increase household… Hosted by Kelly Evans For more information go to www.cnbc.com. The information contained in this tv appearance represents SCM’s opinions, and should not be construed as personalized or individualized investment advice. Past performance

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Fox Business: Tony Scherrer, CFA on Wells Fargo

Wells Fargo’s task in CEO search? Find the next Jamie Dimon By Joe Williams Stocks mentioned: WFC For more information go to www.bloomberg.com. The information contained in this article represents SCM’s opinions, and should not be construed as personalized or individualized investment advice. Past performance

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CNN Business: Bill Smead on Amazon’s High Multiple

Amazon stock sinks following Trump’s attacks By Nathaniel Meyersohn For more information go to www.cnn.com. 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 guarantee of future results. The securities

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Illusionary Investing

My career started in 1994, which was a stealth bear market for stocks and an outright bear market for bonds. Fed Chair Alan Greenspan hiked rates seven times as he played catch up in response to a percolating economy that rediscovered its sea legs coming off the 1991 recession. The Federal Funds Rate doubled from 3.00% to 6.00%, and the 30-year bond yield jumped 150 basis points to 7.75%. You lost roughly 25% by owning the long bond, and although the S&P 500 grew operating earnings 18% that year, its price declined around 1.5% while your average stock did far worse. This Fed era was quite opaque, often surprising the market and offering very little read-through. At times it seemed Greenspan reveled in non-transparency, as the opening quote reminds us.

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