Bill Smead | TalkMarkets | Page 1
CEO, Smead Capital Management
Contributor's Links: Smead Capital Management
William is the founder of Smead Capital Management, where he oversees all activities of the firm. As Chief Investment Officer, he is the final decision-maker for all investment and portfolio decisions as well as reviewing the implementation of those decisions in the firm’s separate accounts ...more

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Saved By Zero
The U.S. Federal Government has set a net zero carbon goal by 2050. Tremendous resources have been applied with borrowed money to fund these goals and subsidize money-losing green investments.
Drivers And Stock Pickers
As opposed to drivers who overestimate themselves, we seek to be above-average stock pickers by doing the things that most professional investors struggle with, like being courageous and patient.
Stock Market-Interest Rate Rhymes
History shows that the movement of stock prices and interest rates don’t necessarily happen simultaneously but play out over time.
70/20/10 Rule Redux
Low turnover must be attached to companies that generate high free cash flow because you can sit through the inevitable bear markets and/or spring back to life faster when the bear market ends.
Long-Term Puzzle Pieces
The other 490 stocks in the S&P 500 Index, which had not participated in this year’s “bull market,” woke up in reaction to what appears to be a capitulation in the political reality of ongoing inflation.
Stepping On A Rake
The year 2008 and the subsequent Global Financial Crisis stand as a watershed moment in the annals of our capitalist society.
Stock Market Psychology
As bottom-up stop pickers and long-term investors, sentiment indicators don’t rank very high on our list of important considerations.
Artificial (Stock Market) Life Support
At the end of 2022, after the tech sector and the S&P 500 Index had taken a drubbing, we wonder if the leaders of the Magnificent 7 companies got together.
Energy Magicians
Is there a magician out there who can create the electricity needed to replace the gasoline we use today? Let’s sit in on a good first-year economics class to see how supply and demand are adding up.
Acorns Grow Into Trees
The stock market is providing lots of opportunities in the smallest neglected large caps, and the largest neglected mid-cap stocks.
Oil Stock Disconnect
Some very peculiar price action has been occurring in the shares of medium capitalization oil and gas companies. The chart below shows the price of these companies when oil last traded at $91.50/barrel:
Inflation Expectations
As inflation becomes a decade-long problem, we believe you will see growth stock price-to-earnings multiples contract over time.
Passively Dangerous Bubble
Passive investment modalities have attempted to mask the crazy euphoria by moving tech stocks into other categories to disguise concentration.
The Fed’s Entropy Bubble
Over the last twelve-plus years it’s been fascinating to watch the Federal Reserve struggle to defy the laws of nature through unconventional monetary policy and in the process, we believe, decrease the stability of the system.
The Way We Were
We are very over-weighted in energy and very under-weighted in the glam tech sectors which have totally dominated the first half of 2023 and the last 12 years in the stock market.
Artificial Intelligence Envy
If you aren’t practicing a successful investing discipline, it is especially tempting to envy those who are benefiting from the latest euphoria.
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