The Hidden Enemy Is Inflation

The Wall Street Journal published a great article in today about the arch-enemy of investor returns, inflation. While investors may feel good about nominal returns, the stock market has been absolutely horrid in this decade once adjusted for inflation. This aspect is too often overlooked by investors. In fact, this line of thinking often plagues [...]

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Don’t Believe The Hype About Stocks

Today’s Wall Street Journal contains an interesting review of the decade in stocks (free link so get on over there and read it). The article points out the this decade’s dismal stock returns are worse than even the 1930′s. Furthermore, inflation-adjusted returns lag even those of the 1970′s, which was marred by inflation. It has [...]

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Implications of XOM/XTO Deal For Natural Gas & Chesapeake Energy

The first big deal in the energy E&P space was announced yesterday as Exxon Mobil struck an agreement to buy XTO Energy. While I do not have a vested interest in either party, this deal has some implications for the energy markets and our largest position, Chesapeake Energy (CHK). Exxon’s move into the US natural [...]

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Various Views On The VIX

All alliteration aside, two interesting articles popped up this morning on the VIX index, the so-called fear gauge for stocks. Mark Gongloff pens a fairly pedestrian piece in today’s Wall Street Journal, suggesting possible complacency in the stock market as traders enjoy the holidays. The year-end holiday trading action is well-known and markets tend to [...]

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The Unsung Guru

While many value investing sites sing platitudes about the usual suspects — Buffett, Munger, Klarman, Berkowitz, Lampert, Pabrai, et al — one name seems to slip under the radar: Robert Rodriguez of First Pacific Advisors. Of all my 13F filing breakdowns, Rodriguez’s is one of the least viewed. For what reason, who can say? It [...]


Portfolio Up 37.7% YTD

THE ENLIGHTENED-AMERICAN PORTFOLIO SPREADSHEET Enlightened-American Portfolio: +37.7% YTD (my actual IRR, including cash balance) DJIA: +17.9% Nasdaq: +36.0% S&P 500: +21.3% DJ Wilshire 5000: +16.9% Russell 2000 (smallcap): +12.7% Our portfolio lagged the broader market during November but continues to outpace the major indices for the year. In any case, I implore members to take [...]