For the last five years the European technology sector has been locked in a trading range relative to the MSCI All Country World Index (USD). Recently, however, European technology stocks have been performing quite well. On an equal weighted basis, they have been the second best performing group in Europe year-to-date. While there are only 17 […]
Health care stocks have been the leadership sector in the MSCI World, and many (such as biotech) have reached some pretty elevated valuations. Most stocks in the sector have been in multi-year bull markets trends, outperforming the MSCI All Country World Index significantly. In our relative strength point and figure charts we take the daily […]
Profitability and investment are inextricably linked through time. A company’s investment decisions today will ultimately drive its profitability level tomorrow. The fruits of a company’s investment decisions eventually show up in profitability metrics such as free cash flow margin, operating cash flow margin, and return on equity. Finally. a company’s ability to improve these metrics, […]
After our recent call, we received an insightful question about how we view research and development (R&D) because surely not all R&D is productive and profitable?
Market-cap weighted indexes such as the MSCI global equity indexes are commonly used reference points for investment benchmarking. In these indexes, the market cap of the top 10% of the stocks is generally 50% of the market cap of the index.
I often go back and re-read things that have shaped my perspective on managing portfolios. In my 20s (in the 1990s) I was fortunate to have a friend and mentor named Clay Allen who taught me volumes on the art of portfolio management.
First thing first, Keurig Green Mountain (ticker:GMCR) is not a Knowledge Leader, which means as an investment team we don’t spend a lot of time delving into the intricate details of the stock.
Similar to a basketball player with a ”hot hand”, stocks go on statistical runs. And similar to a player with a ”cold streak”, stocks have slumps. Over time, with a proper perspective, it is easy to measure the extent to which these runs and slumps play out in the market and invest accordingly.