Smead Blog

The investment marketplace suffers from information overload. Smead Capital Management seeks to cut through the cacophony of other media resources to focus on what is important to long-term common stock ownership. This comes through our missives, quarterly newsletters and appearances in the media to provide thought leadership for our potential and current investors.

Engulf and Devour

As Amazon prepares to buy MGM Studios and announced an effort to put pharmaceutical stores all over the U.S., we are reminded of one of my favorite comedy movies, Silent Movie. Mel Brooks produced this movie as the third in a trilogy of comedies including Blazing Saddles and Young Frankenstein.

06/01/21 by

Today’s Stock Market Illusions

My recent reads have been stuck in the 1960’s, including Adam Smith’s The Money Game and Andrew Knowton’s Shaking the Money Tree. Both are fascinating reads into the psychology of the 1960’s. They are not looking back like John Brooks’s The Go-Go Years (a good read as well), but instead share with the readers exactly what investors were thinking at the time. The 1960’s didn’t set up investors for the decade they thought they would get. Instead, it gave them the 1970’s. The success ahead was an illusion in stock returns, not corporate growth. I’d like to use this piece to look at some of the illusions that will stalk investors and produce stock market failure in the next decade.

05/25/21 by

Repeating Discovery’s History

On May the 17th of 2021, Discovery announced a merger with the media assets of AT&T. After an initial burst of enthusiasm, investors have turned sour on the deal. We have been through a very similar experience with Discovery (DISCA) back in November of 2017 and believe that these circumstances “rhyme.”

05/19/21 by

Inflation: It’s Just the Start

To say that we were surprised by some of the discussion at the Berkshire Hathaway Annual Meeting would be an understatement. The conversation Warren Buffett and Charlie Munger leaned into on inflation was possibly the most interesting. Warren and Charlie gave large credit to Larry Summers for his willingness to stand alone on the effects of today’s fiscal and monetary policy on prices. We thought this was an ideal time review Buffett and Munger’s discussion and see what conclusions we could draw.

05/11/21 by