Capital Ideas

Second Quarter 2018 Letter to Clients

Market pundits have spent a great deal of time the past three decades endlessly debating the merits of “active” vs. “passive” investing. At its core, the argument can be distilled down to this: Is it better for investors to employ elaborate strategies to try and...

read more

First Quarter 2018 Letter to Clients

January saw the stock market continue its rapid surge upward, but the party did not last long on Wall Street. Volatility returned to the market in a significant way by the end of the month, and stocks have whipsawed up and down ever since. Not surprisingly, the media...

read more

Death of the Fiduciary Rule

It’s officially official: the Fiduciary Rule is dead. I first wrote about the Fiduciary Rule in this forum in March 2015, asking the question “Whose Interests Come First?” Subsequent posts chronicled the saga of the rule until it finally became law on April 10, 2017....

read more

Fourth Quarter 2017 Letter to Clients

Fourth Quarter 2017 Letter to Clients As 2018 began, the major U.S. stock market indexes surged to yet another round of record highs. The first week of January saw the Nasdaq index top 7,000, the S&P 500 index clear the 2,700 mark, and the Dow Jones Industrial Average...

read more

Whats Your Business Really Worth

What’s Your Business Really Worth? Part 2 Key Takeaways: There are at least 7 different ways to value a private business: Here we will explore Liquidation Value, Market Value, Fair Market Value and Owner’s Value. Market value is a technique for showing how your...

read more

Third Quarter 2017 Letter to Clients

Third Quarter 2017 Letter to Clients “Is the stock market in another bubble?” Of all the questions we field from clients, prospects, friends and family – the question of whether we are in a bubble leads the way by far. There are two reasons why this question comes up...

read more

Second Quarter 2017 Letter to Clients

Second Quarter 2017 Letter to Clients   As the major stock indexes have, one-by-one, broken through their previous record highs in recent months, it has been interesting to observe that the dominant reaction among many investors has not been one of celebration but,...

read more

First Quarter 2017 Letter to Clients

First Quarter 2017 Letter to Clients “The buying opportunity of a lifetime.” That was how the esteemed financial writer Nick Murray described the stock market environment in early 2009. Hindsight shows he was, of course, spot on. But it certainly didn’t feel that way...

read more

Searching for the Holy Grail of Investing

CAPE Fear: Can we use Valuation Ratios to Time the Market? With popular market benchmarks like the S&P 500 setting record highs in 2014, many investors have become apprehensive. They’re afraid that a major market decline is imminent and are eager to find a strategy...

read more