When a company performs well and I interview its CEO on CNBC, I consider the stock’s performance before fashioning my questions. When a chief executive is hitting it out of the park, the interview is going to be easy. My main objective is to find out if the great numbers are sustainable. Is there something … Read more
When you make a mistake in this business you can do one of two things: You can cut your losses and move on or you can stand your ground while rethinking where it went wrong. I am on the fence about which one is better, but it’s easy to see why the first approach — … Read more
At law school, we learned about “proximate cause,” one of the few valuable concepts you can take from three years of drudgery. It’s about who and what caused the injury and who pays for it. The current stock market lends itself to proximate causes, as in, “We have to find a cause for the pronounced … Read more
We’ve become prisoners of short-rate forecasts. Yeah, the ones controlled by the Federal Reserve. But those fearless investors who have broken out of this self-imposed mental jail are enjoying bountiful returns. Sure, it appears to be nothing but alchemy to the jailers and their powerful protagonists in the media. But does it matter? They don’t … Read more
More than half of the stocks in the S & P 500 hit new 52-week highs in the first quarter, leaving us to puzzle over how this all happened. We act as if it’s all about the earnings or the actions of the Federal Reserve. But maybe it is something else. Maybe it’s the share … Read more
Recently, I read a terrific little book about Abraham Lincoln, called “Lincoln Reconsidered,” by Professor David Herbert Donald, and the fundamental premise behind the title was simple: If you want to go down in history as a politician who is compassionate, honest and a visionary, you have to get right with Lincoln. That’s how sainted … Read more
This week’s strong market pushed three of our portfolio stocks well clear of our current price targets. Since these rallies look like they have legs, we’re taking our numbers up. Nvidia price target increased to $1,050 NVDA YTD mountain Nvidia YTD Coming off a bullish GTC conference where Nvidia CEO Jensen Huang made the case … Read more
We convened a Club meeting at Palm Beach Gardens on Saturday. We just didn’t know it. My wife, Lisa, and I were signing bottles of her finest Fosforo mezcal at Total Wine & More, and I can’t believe how many people showed. It reminds me that Florida has to be the venue for our next … Read more
There’s nothing like a moribund IPO market to create a pleasant backdrop for a bull run. We’ve had some small biotech deals and the usual SPAC junk. But nothing big, seemingly for ages. Until Reddit. Its initial public offering — which will probably come at a $7 billion valuation and an odd price tag of … Read more
Can’t stop won’t stop? OK, you will never confuse me for a rapper, but those are the four words that describe this economy right now. And as we walk into retail earnings hell â a period where too many retailers report all at once and the comparisons become odiously confusing, starting with Walmart and Home … Read more
