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The Wisdom of Jason Zweig
This Week on The Compound
This Week on The Compound
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This week on TCAF, Josh and Michael were joined by Jason Zweig, of the Wall Street Journal and editor of The Intelligent Investor: The Definitive Book on Value Investing (Third Edition). They discussed what Ben Graham would think about today's market, the popularity of buffered ETFs, and Jason's last conversation with Charlie Munger, (Listen)
INSIDE THE COMPOUND
Of late, it feels like the U.S. stock market can’t go down, but any look at market history shows no shortage of declines. Long-term market forecasts are tenuous, so Ben Carlson recommends good old-fashioned diversification to blunt the possibility of a ‘lost decade.’
Plenty of other areas of the stock market — small caps, foreign stocks, value stocks, dividend stocks, high quality stocks, emerging market stocks, etc. — haven’t fared nearly as well. And bonds will beat stocks at some point because you don’t get the long-term risk premium in the stock market without the risk.
OUTSIDE THE COMPOUND
We are currently inundated with political content of all kinds, especially if you are still on Elon Musk’s X. Kai Wu at Sparkline Capital take a closer look at the impact of corporate political donations on the performance of the stocks. There are some companies that clearly contribute to one party or the other, but Wu finds that companies that stay non-partisan tend to outperform, with less volatility. Wu writes:
Nonpartisan stocks appear to offer the dual benefit of higher return and lower risk. To be clear, these companies are not “apolitical,” abstaining from the political process. On the contrary, they are highly proactive in ensuring they have “a seat at the table.” That said, they do not let partisan politics get in the way of their business objectives.
COMING SOON
This week on TCAF, Josh and Michael will be joined by returning guest Jack Raines of Sherwood News and author of the Young Money newsletter.
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