Price is what you pay. Value is what you get. -Warren Buffett Here’s a chart showing the relationship between the S&P 500’s Price-to-Earnings (P/E) ratio and annualized returns over the next 2 years. It simply shows that your expected return is high when you buy something cheap, and low when you buy something expensive. On…
Earnings Updates
Once again, I’ve been very pleased with the earnings and outlook reported by the majority of the companies we own. A few of our core holdings held their conference calls this morning so I wanted to provide a quick update. CF Industries (CF) & Terra Nitrogen (TNH) CF is our largest “Growth” holding and TNH…
How to Produce Outsized Long-Term Returns from the Perspective of Value Investing
I’m going to let you in on a little secret: Wall Street doesn’t look out beyond 1 year. That’s it. Just 1… Wall Street is part of the brokerage industry and all that the brokerage industry cares about is making sure: 1) you remain invested in their expensive products, and 2) you continually churn your…