William Smead
Chief Executive Officer
Chief Investment Officer







Dear Clients and Prospective Clients:

The darkest days in World War Two were during the bombing of London. Air raid signals would blare and folks would go underground and wait for the bombing to get over. Since the United States had not yet entered the fight and mainland Europe had been overrun by the Germans, the British were left to stand alone. The relentlessness of the pounding and the loneliness could have broken the spirits of the British. With the strong leadership of Winston Churchill and their own grit and courage, they held on. The Pearl Harbor attack of Dec. 7 of 1941 brought the U.S. into the War and also initiated the process which led to an Allied victory.

For investors in U.S. common stocks, the year 2008 will go down as a year of unrelenting declines. We investors feel bombed out and many of us have sought shelter in Treasury securities, CD’s and money market funds. Today’s early trading fits the pattern we’ve seen all year. Stocks are down across the board without any discrimination between companies or sectors which might fare the best going forward. It is indiscriminate bombing and very disheartening and lonely.

Much like the British did, we must display courage and grit as long-term investors. The deep, long-lasting recession, which the experts have predicted since November of 2007, is trying to convince us to give up hope, just like the prospect of a long war tried to convince the Brits. We have to withstand overnight bombings as Hedge Funds redemptions, Mutual Fund liquidations and Margin calls force across the board selling without regard for future prospects.

In World War Two, the reward for not giving up was the defeat of an evil Dictator and an out of control regime called Nazi Germany. Financial matters are not nearly as important, but from these depressed prices on common stocks, significantly lower commodity prices, low interest rates and high levels of human ingenuity, we at Smead Capital Management believe a great deal of wealth could be created by owning U.S. common stocks over the next five to ten years. We intend to pursue victory with a portfolio that can withstand whatever bombings that remain and can prosper in the good years to follow.

Best Wishes in this Holiday Season,

William Smead

We Advise Investors

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

Recent Missives

Tech Stock Climax

In my 45 years in the investment business, we've observed numerous peaks of excitement. In 1987, a bull market that started at a 1982 bottom below 800 on the Dow Jones Industrial Average...

⟶ Keep Reading

CNBC Europe Squawk Box: Cole Smead on SpaceX Valuation’s Impact

SpaceX is already targeting a mammoth valuation. Will passive funds take it even higher? Squawk Box Europe hosted by Stephen Sedgwick       For more information go to www.cnbc.com. […]

⟶ Keep Reading

Business Insider: Bill Smead on Being Bullish on Commodities

  History says there’s one hedge that could shelter investors during a lost decade for stocks By Jennifer Sor For more information go to www.businessinsider.com. The information contained in this […]

⟶ Keep Reading

Late-Stage Mania: “The Worst Thing Ever”

There is a big difference between betting on something and investing in meritorious companies with long holding periods. Although we are no longer shareholders of Berkshire Hathaway, Warren Buffett shared some wisdom with...

⟶ Keep Reading

Bloomberg Brief: Cole Smead, CFA on US-Iran Deal Optimism

Stocks Hold at Record Highs on US-Iran Deal Optimism | Bloomberg Brief 5/29/2026 By Vonnie Quinn For more information go to

⟶ Keep Reading

A “Casino” Stock Market

There is a big difference between betting on something and investing in meritorious companies with long holding periods. Although we are no longer shareholders of Berkshire Hathaway, Warren Buffett shared some wisdom with...

⟶ 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