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Buying Cheap Assets: Finding Them Now

September 10, 2021

Large-cap U.S growth stocks, particularly tech stocks have been the overwhelming winners of the last decade. They now dominate the market. The top ten S&P 500 stocks, including the FAANGs, account for more than 25% of the index’s total market value, a concentration that worries some market watchers because it is reminiscent of other market tops such as the dot-com bubble when internet stocks made up over 30% of the S&P and the credit bubble when banking stocks reached more than 20%.
With the exception of short-lived spurts value stocks, small-cap stocks and international stocks have badly lagged.
This week’s guest believes the days of this concentrated outperformance by large-cap growth stocks are numbered and suggests some underloved and under-owned alternatives. He is financial thought leader, innovator, and investor Robert Arnott, Chairman of the Board of Research Affiliates, which he founded in 2002 as a self-described “research-intensive asset management firm that focuses on innovative products.”
Among the innovations that he has pioneered is fundamental indexation: building indexes with stocks based on the size of their fundamentals, such as sales, profits, cash flow, book value, and dividends – not their stock price. Research Affiliates has created numerous fundamental indexes for a wide variety of markets and asset classes around the world.
Arnott will discuss why he believes this long era of U.S. large-cap growth dominance could be coming to an end and what could take its place.

WEALTHTRACK #1811 broadcast on September 10, 2021

More Info:
https://wealthtrack.com/financial-thought-leader-rob-arnott-likes-buying-cheap-assets-where-he-is-finding-them-now/

AGAINST THE GODS: THE REMARKABLE STORY OF RISK
by Peter Bernstein
https://amzn.to/3BURwjX

ARNOTT: CAUTION AHEAD

September 10, 2021

Research Affiliates Founder & Chairman Rob Arnott says there are bubbles galore in the market and a looming geopolitical risk with potentially catastrophic consequences.

Watch the related WEALTHTRACK episode. Watch the related WEALTHTRACK episode.

Improve Investment Results: Quality Shareholders

August 28, 2021

In this era of indexing the investors who research and buy individual companies are becoming a rarity – some would say a throwback – to another era.
The most obvious example is Warren Buffett, the nonagenarian Chairman of Berkshire Hathaway who is widely considered to be one of the greatest, if not the greatest American investor in recent memory.
Buffett is famous for buying quality companies for the long term, in his words “forever”.
He is less well known for his emphasis on seeking “high quality shareholders”, stock owners who stick around for the long-term, whom he has succeeded in attracting to Berkshire Hathaway.
This is part two of our interview with Lawrence Cunningham a Professor of Law at George Washington University who is also a driving force behind the university’s “Quality Shareholders Initiative”, intended to research and report on “high quality shareholders”, as they are dubbed by Buffett – traditional investors that study individual companies, acquire substantial stakes in only a few and hold them for the long-term.
The theme of this week’s discussion with Cunningham is quality in companies and shareholders and why a combination of the two often leads to better investment results.

WEALTHTRACK #1809 broadcast on August 27, 2021.

More info: https://wealthtrack.com/quality-investing-shareholders-why-warren-buffet-believes-they-produce-better-investment-results/

“Quality Shareholders: How the Best Managers Attract and Keep Them”: https://amzn.to/38gshMr

Economic Recovery: Massive Problems Ahead [2021]

June 20, 2021

How strong and lasting is the current rebound we are seeing in the economy? What about the resurgence in inflation? Those are major debates raging on Wall Street right now.

This week’s WEALTHTRACK guest is looking beyond the current rebound and focusing on what he sees as massive problems which will act as drags on recovery.
Robert Kessler, Founder, and CEO of Kessler Investment Advisors, a manager of fixed-income portfolios with a specialty in U.S. treasuries.
Even before COVID, Kessler has been warning about economic and stock market risk.
On the program this week, he will discuss why he believes those risks have been exacerbated and the market is in a danger zone.

WEALTHTRACK #1751 broadcast June 18, 2021

More info: https://wealthtrack.com/exclusive-with-robert-kessler-on-why-100-years-of-stock-market-history-are-signaling-danger/

KESSLER: IRREVOCABLY CHANGED

June 18, 2021

How has the pandemic changed Robert Kessler’s personal and professional life? His answer is quite different from the responses we have gotten from other WEALTHTRACK guests.  

Watch the related WEALTHTRACK episode.

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