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

CNBC The Exchange: Cole Smead, CFA on Opportunities in Individual Equities

September 19, 2023

Indexes are struggling but opportunity exists in individual equities, says Cole Smead For more information go to www.cnbc.com. Stocks mentioned: LEN The information contained in this tv appearance represents SCM’s … CNBC The...

⟶ Keep Reading

Oil Stock Disconnect

September 19, 2023

[...] Fortunately for us, push eventually comes to shove. Since there is no end in sight in the demand for fossil fuels and there is only criticism for those who are poking holes...

⟶ Keep Reading

Stock Investors in Barbieland

September 12, 2023

[...] Investors should fear death like Barbie did. We call it stock market failure. These valuations won’t go up like a six-inch heel. Flats may be more fitting for thinking about stock returns...

⟶ Keep Reading

Inflation Expectations

September 6, 2023

[...] We especially like DR Horton (DHI), Simon Property Group (SPG) and Apache Petroleum (APA), as ways to get our share of the profits from a very overvalued stock market. It is a...

⟶ Keep Reading

Investor’s Business Daily: Bill Smead on Berkshire

September 5, 2023

  Warren Buffett Keeps Getting Older. Berkshire Hathaway Stockholders Are Getting Uneasy By Aparna Narayanan For more information go to investors.com. Stocks mentioned: BRK The information contained in this tv … Investor’s Business...

⟶ Keep Reading

The Market: Cole Smead, CFA on Opportunities in Energy and Commodities

August 31, 2023

This Is an Ideal Environment for Value Investors By Christoph Gisiger For more information go to www.themarket.ch. Stocks mentioned: APA, CVE, OXY, OVV, MEG The information contained in this article … The Market:...

⟶ 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