July, 11 2019 // Bradford Cornell
Bubble, Bubble, Toil and Trouble
In April of 2018, Rob Arnott, Shane Sheppard and I published an article entitled, Yes, It’s a Bubble, So What?. Given the turbulence of the intervening fifteen months, and to hold our feet to the fire, we felt a follow-up was in order (Bubble, Bubble, Toil and Trouble). For perspective, both articles are available for download and comparison. To summarize very briefly, we continue to believe that at current nose-bleed levels for stock prices, bubbles abound. But that does not mean there are no opportunities for conservative buy and hold investors. Download the articles and decide for yourself.
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
Research Analyst and Chief Technology Officer
The Conceptual Foundations Of Investing
UCLA and Caltech economist Bradford Cornell has over 40 years of practical experience as a financial adviser, valuation expert, and Professor of Financial Economics. Written in collaboration with his sons Shaun and Andrew Cornell, The Conceptual Foundations of Investing provides a factual basis with which to improve investor performance. There are a host of investment mistakes that can be avoided with this information, such as the trade-off between risk and return, which seems to imply that bearing more risk guarantees 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. The Conceptual Foundations of Investing contains actionable insight to help investors improve every part of their practice, and ultimately drive higher returns.