A tough environment never causes real value investors to waver. Disciplined, fact based analysis sows the seeds of significant future outperformance.
We have seen similar market cycles in the past. While some may not have the stamina to weather this storm, we will stay the course. It's in our DNA.
There are exceptional upside opportunities during extreme market environments. We are now being presented with the opportunity to invest in conservatively capitalized, world class franchises at historically cheap valuations. We believe that when markets return to normalcy and we look back at this period, it will prove to have been a rare opportunity to invest in fantastic businesses at a fraction of their fair value.
Below please find a selection of commentaries from past newsletters that were written during times when the environment looked grim and our views were contrary to consensus thinking.
1Q 1998: Has the Market Gone Crazy?
1Q 1999: Is Value Investing Dead?
3Q 2004: An Alternate View of Volatility
4Q 2004: The Commodity Madness (AKA Bubble)
3Q 2005: Is Energy Value?