Most financial/wealth advisors preach diversification above all else. Spread your bets, the thinking goes, and you protect yourself from downside risk in any single position. Peter Seilern argues the opposite in his 2024 book "Only the Best Will Do." Seilern makes the case that concentrated portfolios of 20-30...
We've previously written an article describing how to identify an overvalued stock market, which covered the yield curve, S&P 500 P/E ratio, S&P 500 dividend yield, CAPE Ratio, Buffett Indicator, and other indicators. But none of these indicators proved more powerful at predicting long-term equity returns than the...
Many investors today are drawing parallels between the current AI investment cycle and the Dot-Com bubble of the late 1990s/early 2000s. Technology stocks now comprise over 50% of the S&P 500. Major tech companies are also committing hundreds of billions to AI infrastructure despite evidence suggesting AI initiatives...
In The General Theory of Portfolio Construction (2024), Charles Gave presents an investment framework he developed in 1978 after watching Nixon break the gold standard and financial markets descend into chaos. Now 81, Gave has refined his four quadrants model through five decades of market cycles, offering an...
In "Nothing But Net" (2021), Mark Mahaney, one of Wall Street's top tech analysts with 25+ years of experience, shares 10 lessons on how to pick winning internet stocks. Mahaney focuses exclusively on high-growth tech stocks, the sector that produced 23 ten-baggers from the late 1990s through 2020....
In her February 2025 study "The Alchemy of Multibagger Stocks," Birmingham City University researcher Anna Yartseva analyzed 464 companies that delivered at least 10-fold returns between 2009 and 2024. While investment professionals have long offered theories about what creates these exceptional winners, Yartseva's work represents one of the...
Warren Buffett has long warned investors about the dangers of using borrowed money to buy stocks. In his 2017 letter to Berkshire Hathaway shareholders, he explained the risk as follows: “There is simply no telling how far stocks can fall in a short period. Even if your borrowings...
In his 2023 book “Global Outperformers,” Dede Eyesan analyzed 446 companies across 13 economic regions that returned over 10-fold (1,000%) between 2012 and 2022. Here’s a summary of Eyesan’s key findings: While the list above provides useful screening criteria, Eyesan emphasizes that succeeding as an investor isn't about...
When you see an investor beat the market for 15 consecutive years, or maintain outperformance over several decades, what's your first thought? Lucky? Skilled? Just a random outcome? Many investors, even professional fund managers, view beating the S&P 500 over the long term like coin flipping. They assume...