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.
When the marginal buyer is price insensitive, a market can produce really silly results. When the global economy is structured to rely on the rationality of this marginal buyer, capital allocation is dramatically distorted when he is no longer rational.
The Chinese government’s effort to add liquidity to prevent the country’s real estate bubble from bursting is spilling over into its stock market. Frederick Bastiat wrote, “There is only one difference between a bad economist and a good one: the bad economist confines himself to the visible effect; the good economist takes into account both the effect that can be seen and those effects that must be foreseen.”