May 22, 2019 // Andrew Cornell
Tesla: The Slow Death of a Growth Story
Tesla’s significant drop, 35% year to date compared to the S&P up 14%, has investors looking for answers. How this could have happened may best be explained by looking at how Tesla’s stock price got as high as it did.
How We Invest
Our thinking is based on the proposition that future cash flow is the ultimate source of value. Although this seems self-evident, we believe that situations arise in which market prices diverge from levels consistent with a rational assessment of future cash flow. Those situations serve as the basis for our investment decision making.
Energy and Investing: Assessing the Political Risk
February 18, 2019 // Bradford Cornell
The public debate regarding climate change rages daily in the popular press and in the halls of Washington. This report takes a different tack and focuses on the investment implications of what we call the great transformation away from reliance on carbon-based fuels.
Shaun Cornell, CFA
President and Chief Investment Officer
Research Analyst and Chief Technology Officer
The Conceptual Foundations Of Investing
This book explains the conceptual foundations of investing to improve investor performance. There are a host of investment mistakes that can be avoided by such an understanding. One example involves the trade-off between risk and return. The trade-off seems to imply that if you bear more risk you will have higher long-run average returns. That conclusion is false. It is possible to bear a great deal of risk and get no benefit in terms of higher average return.