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.

Humility Produces Alpha

Joe Kennedy was getting his shoes shined in 1929 and the shoeshine boy was giving him stock tips. Think of how humiliating it might have been to Kennedy, who had dramatically reduced his common stock ownership. This upstart had been making money and couldn’t wait to pass along his wisdom to Mr. Kennedy. Joe quickly surmised that there was nobody left to buy stocks and established a huge short position in the stock market. The fortune he made by betting against stocks was part of the wealth which led his son, John F. Kennedy, to become President of the United States in 1960.

10/27/20 by

Energy in the Icahn-ic Green Room

[…]The opportunity in today’s market looks stark, just like the 1970’s did to David Dreman. The battle lines are drawn between the green wing and red wing investors, how they attained their wealth and the weight of it. The real question is what you do with this. Despite the odds that history would argue in favor of what we’ve laid out in this piece, there is an intense urge by investors to go to the most exciting part of the casino. […]

10/20/20 by

3Q20 Newsletter: Breaking Big Tech

You are probably aware that we do a great deal of reading, writing and watching at Smead Capital Management. We recently read Peter Doran’s book, Breaking Rockefeller, which is a fabulous economic history of the world from 1840-1920 and focuses on how the monopoly created by John D. Rockefeller was broken from 1890-1910. We also watched a documentary called, “The Social Dilemma,” which explains, through the eyes of some of the social media creators, how incredibly damaging the monopolies, created by internet technology, are to society.

10/15/20 by

CNBC Squawk Box Europe: Cole Smead on Economic Recovery in the U.S.

We’re seeing a classical economic recovery in the U.S.: Investor Hosted by Steve Sedgwick For more information go to www.cnbc.com. The information contained in this tv appearance represents SCM’s opinions, and should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results. The securities identified and described in […]

10/15/20 by

Antitrust: The Truth Will Set You Free

Anyone who owns U.S. large cap stocks must understand what can happen from the actions of the government to enforce the laws on the books for antitrust. Contrary to popular opinion, these laws are not set up to primarily protect consumers from being gouged on price by someone with a monopoly. They are, in the words of Congressman John Sherman, designed to stop our nation from “social disturbance” arising from the “concentration of capital in the hands of vast combinations.” In other words, it was designed to limit the power of for-profit companies to receive a disproportionately large share of the success in our society.

10/13/20 by