I would not normally write a post about a single podcast, but I am making an exception today for Chris Bloomstran’s interview on The Investor’s Podcast which was posted over the weekend.
The interview has extensive commentary regarding Berkshire Hathaway, which is no surprise given Bloomstran’s habit of covering the company in great depth in his recent annual reports. However, what I found even more interesting is his extremely cogent argument regarding the overall U.S. stock market.
Those of us who have been investing for multiple market cycles clearly recall the high valuations of the late 1990s and the “lost decade” that followed for stock market returns. Even companies, such as Microsoft, that had excellent business results during the decade posted terrible market returns.
Why did U.S. stocks perform so poorly during the 2000s and so well during the 2010s?
I will avoid writing more myself and urge those who are interested in the topic to listen to the podcast (or read the transcript) since Bloomstran does an excellent job of explaining the situation that took place during the ‘00s and why we are likely in for a similar period in the decade to come.
The next issue of the Weekly Digest will be posted on Wednesday. Have a great week!
Copyright, Disclosures, and Privacy Information
Nothing in this newsletter constitutes investment advice and all content is subject to the copyright and disclaimer policy of The Rational Walk LLC.
Your privacy is taken very seriously. No email addresses or any other subscriber information is ever sold or provided to third parties. If you choose to unsubscribe at any time, you will no longer receive any further communications of any kind.
The Rational Walk is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com.
Starting valuation matters I guess, I looked backwards on the SPX, trailing 20 year annualized returns are 7.16%, Berkshire 10.6%
Semper Augustus = Always Revered/Majestic and Mr. Bloomstran will always be revered for his annual DEEP DIVE on Berkshire Hathaway. Very interesting information on many fronts in this podcast interview as I had not considered several points Chris brought up. RR traffic up for bid when the bidders don't own the track? WTH kind of executive order is that? Several points Chris brings up in there that I bucket under "unintended consequences" especially around green energy movement. Thanks for sending.