December 31, 2020 Quarterly Letter
The most important job for our investment team is to identify situations where embedded expectations are unreasonably low while avoiding stocks that are cheap for good reason (aka value traps). Cheap stocks can stay cheap unless fundamentals turn out to be better than expected. In contrast, the “great” company that merely ends up being “good” often generates disappointing results for its shareholders - just like so many New Year’s Eves.
Poplar Forest Analyst Insights: Healthcare Q&A
In this edition of Analyst Insights, Steve Burlingame updates us on COVID vaccine developments, key trends in the Healthcare sector, and what he looks for when evaluating investment opportunities.
September 30, 2020 Quarterly Letter
While investors seem to be increasingly addicted to free money, I’m becoming ever more worried about the unintended long-term consequences of low rates, especially given the Fed’s new ultra-dovish policy targeting higher inflation. As former Fed Chair Martin said: “What’s good for the United States is good for the New York Stock Exchange. But what’s good for the New York Stock Exchange might not be good for the United States.”