Summary: The US markets are breaking records on the upside again. As history and fundamentals suggest, more will follow. We remain the unabashed bulls on the future of mankind; we are fully invested and urge you to think and stay positive, for not investing in stocks may be the greatest financial mistake investors will make.
Financial suicide…A picture worth millions: As professionals with a record for creating wealth, we must have looked at this picture at least a thousand times, for it is the story of creation of wealth. We urge you to also have a good look. It is a chart that illustrates how stocks have given returns as much as 150 times that of leaving it in treasury bills since 1926. It shows how even small amounts of money invested on a regular basis in the stock market would have turned into millions and how (relatively) little investors really make in ‘other’ asset classes. Hence, one of our favorite sayings is: “Not investing in the stock market is like committing a financial suicide”.
The unabashed Bulls: We remain the unabashed bulls on the future of mankind, our ability to progress, on capitalism that will continue to be the engine that brings even more prosperity and the billions of additional consumers that eventually said NO to the communist experiment. Our enthusiasm is further supported by the near-zero interest rates that are available as alternatives and the very reasonable valuations that can be had easily in the stock market.
Putting our money where our mouth is: Not investing is just not an option. Sitting on cash or in bonds offering rates of return below inflation are akin to the financial suicide we have talked of. We continue to be buyers of good quality companies as we have been for several years. We advise the same to most.