Second Quarter 2016 Appraisal Letter

The performance statistics shown above appear tame and even ordinary, and do not begin to describe the distorted condition of the capital markets in which investors find themselves today.  I have never seen anything like it, and I have seen a lot, including 20% interest rates in the 1970s, ... read more...

First Quarter 2016 Appraisal Letter

28 April, 2016 by Ben O'Brien in Quarterly Letters
What to say about the first quarter, when stock-market happenings bordered on the bizarre?   With two weeks left to the end, the March 18 edition of The Wall Street Journal ran this front-page headline: Dow Industrials Turn Positive for 2016 as Oil Rises and the Dollar Falls. A large graph ... read more...

Fourth Quarter 2015 Appraisal Letter

As the opening theme of this quarter and year-end letter, I want to examine a popular business maxim: “What gets measured, gets managed.” The maxim comes courtesy of management consultant Peter Drucker, who was much honored around the middle of the last century. I remember reading ... read more...

First Quarter Appraisal Letter

10 April, 2015 by Mark O'Brien in Quarterly Letters
The first quarter of 2015 saw stock prices rise in January and February (with several new record highs) only to stall out in March.  The Dow Jones Industrial Average closed on March 31st at 17,776.12, down less than 1% for the quarter. Treasury bond yields notched lower over the quarter into ... read more...

Fourth Quarter Appraisal Letter

21 January, 2015 by Mark O'Brien in Quarterly Letters
As we finish one year and start another, we have to remind ourselves that the stock and bond markets are on their own schedule.  They don’t appreciate a good year, such as we just had.  Even less do they recognize or give extra credit for a new theory or policy.  Neither do the stock and bond ... read more...