Dear Clients, Globescan Capital was founded on the principle that investing in high-quality companies at attractive prices is the best and most consistent strategy to achieve long-run risk adjusted performance. This remains as true today as it has ever been. Regardless of any recent market movements, we maintain the same disciplined adherence to that principle. In...
Since our last update a week ago, which may seem like an eternity now, the market has dropped another 6% - putting the YTD performance of the S&P 500 down roughly 30% (though it’s up substantially at the time of writing today). To put this all into context, the collapse in equity markets now...
For those of you who aren’t keeping score, the most recent daily returns of the stock market have been: -9%, 5%, -5%, -10%, 9%, and -12%. That -12%, which occurred yesterday, also happened to be the single worst day in US stock market history since October 19, 1987 (a title previously held by last...
You’ll excuse us if these market updates are getting a bit out of hand (we naturally prefer to write about things that play out over years, not months) but these past few weeks have given us a front-row seat to the market’s panic-driven, short-term irrationality – a trait that investors (especially passive investors) might...
So far this year we have seen a 10% sell-off in equity markets. We should open by saying this is no cause for concern. You will recall that we noted in our last few letters that statistically speaking, we have been due for a 14% peak to trough sell-off for a while now. Many...
First American Financial Corporation (FAF) is one of the two dominant players (along with Fidelity National Financial, FNF) in the title insurance industry. FAF isn’t exactly the sexiest company – they don’t show up much in the news – but they are the sort of very profitable, dependable, defensible company, providing a keystone service,...
This short piece is a continuation of our previous article challenging the obvious and critical flaws of the ‘efficient market hypothesis’- a theory which states that stock prices reflect all known information, and so always trade at their fair value. If true, that would make it impossible for active managers, such as us, to...
In our most recent quarterly update, we talked about the importance of long-term thinking in a world that is increasingly dominated by short-term news flow. Not to belabor the point, but this concept is so fundamentally important to what we do here at Globescan that we felt it deserved its own article. When we really...
Dear Clients, We are happy to report that 2019 was a very positive year in both absolute and relative performance terms. As you know, Globescan Capital was founded on the principle that investing in high-quality companies at attractive prices is the best and most consistent strategy to achieve long-run risk-adjusted performance. This remains as true today...
As you know, we run an active, concentrated portfolio. We believe that the best way to maximize long-term wealth is by owning high-quality companies that we can purchase at a discount to their intrinsic value. We also believe that it is less risky for an investor to own 25 stocks which they know inside...
