Here we are, less than 50 days into the Biden administration, and the stock market is up more than 20% since election day. Should we be surprised? What about all the doomsday predictions about the new administration’s policies tanking the economy? As expected, the new, democratically controlled Congress is proposing a COVID relief package that …
Should Investors Care about Who Is in the White House? Read More »
For at least the last decade, the spotlight has been glaring down on investment management fees and the impact they can have on investment returns. Unquestionably, investors need to be aware of investment management fees and expenses when formulating their long-term investment strategy. But, in terms of the damage they can do to investment performance, …
Over the last several posts, we’ve been discussing the different performance components of a company as a way to predict its investment performance. Evaluating a company starts with business performance, which is based on the decisions management makes over time on allocating its capital to grow profits. Business performance drives shareholder performance—that is, how much shareholders benefit from …
Investor Performance as the Key Driver of Investment Performance Read More »
The next component in our series on the three performances that drive a company’s investment performance is shareholder performance. Shareholder performance is driven almost entirely by the business performance of a company discussed in our last post. One of the better gauges of a top-performing company is how happy its shareholders are. Happy shareholders typically translate into sustainable business …
Shareholder Performance is Best Indicator of Business Performance Read More »
In our last blog post, we introduced the notion that a company’s overall investment performance is driven by the orchestration of three different types of performance—business performance, shareholder performance, and investor performance. It takes a masterful, symphonic arrangement of all three to produce sustainable investment returns. In the next three posts, we take a deep …
Have you ever wanted to invest in a company because its stock was doing well or sell a company’s stock because it was lackluster? While that may seem like a sound basis for making an investment decision, it could result in a costly mistake. That’s because, at any given time, the company’s stock price performance …