The Roman philosopher Seneca wasn’t talking about the stock market when he wrote that “Time discovers truth,” but he could have been. In the long run a stock price will reflect a company’s (true) intrinsic value. In the short run the pricing is basically random. Here are two real-life examples.
Today I am going to share with you an article I wrote after the January 2018 stock market volatility. It’s as relevant today as it was then. However, this time around you don’t have to strain your eyes; you can use your ears. Optimal Living Daily has turned my article into a podcast. Turn off your TV, shut down your brokerage website, relax.
I am 14 months into working on my new book, The Intellectual Investor, which is far from being finished. I have written fifty thousand words but have yet to find answers I am looking for, and thus the journey continues. Working on this book has been one of the most fulfilling experiences of my life. Because of it I am:
11 months into not eating dessert (read my “I Don’t Eat Desserts” article here)
6 months into working out twice a week with a trainer
When I write about VALUEx Vail I always catch myself sounding just like Tim Cook: “This is the best iPhone ever!” As the iPhone incrementally improves every year, so does VALUEx Vail. We don’t put any incremental R&D into our private value investment conference, but it gets better for one simple reason: We all become closer and closer friends (we had only five new attendees out of 40 this year). We heard 30 presentations over three days.
I had the pleasure of speaking at the London Value Conference, which was a terrific, first-rate event. I did not make a formal presentation; instead I did Q&A with my friend, the wonderful David Shapiro.
I just finished a ten-page quarterly letter to clients and am taking refuge here to write about anything other than stocks. This scribble will be about a topic that I have been thinking about the last six months. I am somewhat embarrassed about it, because it’s a bit “me”-centered, and I am going to go into areas that (I am acutely aware) lie far outside of my circle of competence, but that is how we grow. I promise to write about the stock market, stocks, and the economy in the future. Just not today.