William Smead
Chief Executive Officer
Chief Investment Officer 



Dear Clients and Prospective Clients:In an 11-month stretch of 1978-79, Oil nearly tripled in price to $34 per barrel, inflation and interest rates skyrocketed and the U.S. Embassy in Iran was taken over by Shiite Fundamentalists for nearly a year. Panic, fear and pessimism ruled the day. From 1980 to 1989 I worked for the most profitable private company in the U.S., Drexel Burnham, which specialized in the so-called “Junk” side or below-investment grade side of investment banking and trading. During the Savings and Loan debacle of 1988-1992, Drexel Burnham entered Chapter 7 bankruptcy for liquidation in February of 1990.


Why do I share this? In 1979-1981 we were told by respectable experts that our economy would never again be the powerhouse of the world. In 1992, experts told us that banking would never be as profitable in the future because of the S. and L. debacle and the closing of 1000 of the 8000 banks that existed in 1988. A young governor from Arkansas argued in the 1992 election that “it was the economy, stupid.” This cleansing we are going through currently is powerful and difficult, but not new. While Merrill Lynch is no longer independent as of this morning, we are still “Bullish on America”

Call us today for reinforcement or join us tomorrow at our Roadshow Event in Seattle to review our discipline and consider which Northwest stocks deserve our affection.

Warmest regards,

 


William Smead

We Advise Investors

Sign up to get our advice sent straight to your inbox.

Recent Missives

Only Dave Cuts the Federal Budget

May 21, 2024

Back in 1993, a brilliant satirist by the name of Ivan Reitman produced a movie called "Dave." It was the story of a life-threatening stroke besetting the President of the United States of...

⟶ Keep Reading

Buffett and Munger Mark the End of An Era

May 7, 2024

At the Berkshire Hathaway Annual Meeting we marked what we believe is the end of an era both for Berkshire and for the S&P 500 Index. In Berkshire’s case, it is the loss...

⟶ Keep Reading

1968-1969: Buffett and Price Agreed

April 30, 2024

We’ve recently been making the case that the current circumstances in the stock market are most like the late 1960s and 1970s. Euphoric enthusiasm for the most aggressive stocks and an economic/national security...

⟶ Keep Reading

DXYZ: An Old Form of Ignorance

April 23, 2024

Many investors are bullish, or not fearful, of the future of stock returns. At Smead Capital Management, we continue to explain to our investors how poor the outcomes will be. Some ask when...

⟶ Keep Reading

1Q24 U.S. Value Strategy Newsletter: Common Stock Psychology Matters

April 15, 2024

There are four main educational disciplines that are important to us in the investment process. We believe investors need to understand economics, the history of the stock market, the mathematics of investing and...

⟶ Keep Reading

1Q24 International Value Strategy Newsletter: Higher Natural Rates

April 15, 2024

As we finish the first quarter of 2024 and look ahead, global stock investors are looking for lower short-term rates from central banks. The question remains whether they will get them. Looking back...

⟶ Keep Reading

We Advise Investors

Sign up to get our advice sent straight to your inbox.

US INVESTORS

Individual Investors

OR

Financial Advisors, Family Offices,
and Institutional Investors

OR

NON-US INVESTORS

Individual Investors

OR

Financial Advisors, Family Offices,
and Institutional Investors

OR

Scroll to Top