William Smead
Chief Executive Officer
Chief Investment Officer 


 

 
Dear Clients and Prospective Clients: 

Almost two years ago, the Arizona Republic did a feature story on their cover about a talented and successful residential real estate agent located in Paradise Valley, Arizona. He was featured because the Phoenix market had been hot for years and nobody was hotter selling high-end homes than him. Phoenix and its high-end homes were pre-ordained to fall and boy have they fallen.

Pull out yesterday’s Sunday business section of the Seattle Times and you’ll see a feature on shortsellers. It’s the kind of article they write when someone has been on a roll (in this case betting against stocks). Short Sellers have every right to bet against stocks, but the media only wants to write about you when you’ve had a hot hand lately. There were no features on short sellers in the 1990’s, as stock rose dramatically off and on for a decade.

These cover stories come from the media all the time, both nationally and locally. Examples include T. Boone Pickens, Donald Trump and Shawn Alexander (the former Seahawks running back). The media had Boone Pickens all over their covers during the big run up in Oil prices. The price of oil has since been chopped in half and Picken’s Hedge Fund has lost $2 billion.

When real estate was hot, the “Donald” and his smiling face were everywhere. Sell real estate when Donald Trump is popular and buy when he is in bankruptcy court. Former Seahawks running back, Shawn Alexander graced the cover of Sports Illustrated two plus years ago (after being named league MVP). He couldn’t find a team that would hire him at the start of this year. The Seahawks can barely win a football game. The fall from the cover is a hard one.

The media is in love with the Hedge Fund managers and shortsellers who have had the hot hand in the decline of the last few years. We think they and their investors could be singing the blues in two years. Remind me to be cautious down the road when the cover stories are about value buyers like us, who stayed the course around the bottom of the Panic of 2008. We are looking forward to getting to the top of the performance mountain from this difficult valley and believe that it is being set up by the current cover stories.

Best Wishes,


William Smead

We Advise Investors

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

Recent Missives

O-I-L-S, Oil Stocks

March 27, 2025

When you grow up with a father who worked in the brokerage business, you hear a lot of stories. The especially interesting ones are those about the investment business in the 1980s. Many...

⟶ Keep Reading

U.S. economy is being held up by higher earners, fund manager says

March 24, 2025

U.S. economy is being held up by higher earners, fund manager says Squawk Box Europe   The information contained in this tv appearance represents SCM’s opinions, and should not be […]

⟶ Keep Reading

Barron’s: 12 Consumer Stocks That May Hold Up Well in a Downturn

March 17, 2025

12 Consumer Stocks That May Hold Up Well in a Downturn. By Paul R. La Monica For more information go to www.barrons.com. Stocks mentioned: SPG, MAC, ULTA The information contained […]

⟶ Keep Reading

Been Here Before

March 13, 2025

Investors who have come to us in the last three to four years are probably wondering if we’ve been here before. By here, we mean a stretch of significant underperformance relative to our...

⟶ Keep Reading

Marketwatch.com: Bill Smead on Warren Buffet Waiting for a ‘Wild Swing’

February 24, 2025

Warren Buffett’s waiting for a ‘wild swing’ to the downside for stocks, says veteran Berkshire watcher By William Watts Stocks mentioned: BRK For more information go to www.marketwatch.com. The information […]

⟶ Keep Reading

Reuters: Bill Smead on Berkshire’s Record Profit

February 22, 2025

  Buffett’s Berkshire posts record profit on insurance, investments By Jonathan Stempel For more information go to reuters.com. Stocks mentioned: BRK The information contained in this tv appearance represents SCM’s […]

⟶ 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