Thoughts on Investing
This manager commentary provides insight into our global, concentrated absolute value investing philosophy and the key tenets that have consistently underpinned our value investing approach.
The purpose of C&B Notes is to pass along ideas, concepts, stories, and information that are informing and influencing our worldview and “latticework of mental models.”
There is no substitute for being on the ground to assess how businesses are really performing. Accordingly, international and domestic travel is a critical component of our research. This Travelogue includes snippets from some of these international trips.
Despite some deleveraging by US households, a recent study by McKinsey reports that worldwide debt in nearly all of the 47 countries that it researched has grown in both absolute terms and relative to GDP.
The Bank of Japan is buying nearly all of the debt its government is issuing to support massive deficit spending. In fact, there are not enough remaining JGBs to make it worth the Royal Bank of Scotland’s effort to remain a primary dealer. With negative yields extending almost all the way to the 10-year mark on the yield curve, Japan’s monetary experiment is deep into the theater of the absurd.