As we’ve talked about before, credit cycles drive equity and economic cycles. If you can understand where credit markets are heading, you can understand what is likely to occur for the economy overall, and the equity markets.
This fund manager has lived by a less known Buffett quote about being a concentrated investor when you have all the information. It has both made him billions and almost sunk his career multiple times.
For many years, this company’s as-reported financials seemed to line up with its stock market returns. However, once the company began its acquisition strategy, the stock’s movements and as-reported accounting