Loading...
INSIGHTS 2019-04-10T18:29:25+00:00

A Rare Opportunity for Value Investing

We believe the market has set up a rare opportunity for value investing. The valuation gap between growth and value stocks is at historically high levels, similar to that last observed during the dot-com bubble of 1999-2000. For investors who've benefited from the strong rally in growth stocks, history suggests it may be prudent to reallocate profits toward value stocks, where valuations are much more reasonable and future returns are potentially more favorable.

By | September 10th, 2019|Categories: Investing|

June 30, 2019 Quarterly Letter

The key to investment success this year has been simple: buy the most expensive stocks and avoid the cheapest ones. That’s not what we do at Poplar Forest and our investment results reflect our continued commitment to a value-based investment process. While we’re concentrating on stock prices relative to long-term normalized earnings and free cash flow at the company level, investors currently seem to be focusing on short-term macroeconomic factors. The pre-occupation with recession and risk is understandable, but I believe it has been taken to an unreasonable extreme.

By | June 24th, 2019|Categories: Quarterly Reports|

March 31, 2019 Quarterly Letter

In the midst of the panic last December, and as described in my last letter, we got a visit from a hysterical Chicken Little and his friends. As you know, Chicken Little is chronically bearish – always looking at the glass as cracked and half empty. Henny Penny goes with the flow and tends to get caught up in the emotional tide of markets – selling when her friends are worried and buying when they’re optimistic. Ducky Lucky is able to keep his emotions in check – he sticks to a long-term plan and re-balances his portfolio when allocations drift away from targeted levels. Ducky Lucky best embodies the Warren Buffett maxim to “be fearful when others are greedy and greedy when others are fearful.” After such a strong move in the first quarter, the threesome stopped by our office again in late March to get our current take on the market.

By | March 29th, 2019|Categories: Quarterly Reports|

Categories

Recent Posts

Quarterly Commentary Archive

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
2018 Read Now Read Now Read Now Read Now
2017 Read Now Read Now Read Now Read Now
2016 Read Now Read Now Read Now Read Now
2015 Read Now Read Now Read Now Read Now
CONTACT US