When a company earns a profit, all accounting maneuvers aside, there is more cash in the till at the end of the year than there was in the beginning. Some of the money reinvested in the business in the form of capital expenditures (often called CAPEX), which refers to the purchase or upgrade of physical assets like property, buildings or equipment. When management has made all of their capital expenditures,… Read More
A lot of our attention at Acropolis is focused on asset classes like US large or mid cap stocks, emerging markets or bonds. We also spend a lot of time researching and trying to optimize strategies like value, momentum, size and quality. Another dimension that factors into our decision making process are stock sectors (bond sectors too, but I’ll save that for another day). Within the S&P 500, there are… Read More
Stocks were basically flat yesterday after Tuesday’s strong rally. Some smaller economic releases like the ADP private payrolls report and the ISM services data were softer than expected, but the news from the Fed’s ‘beige book’ was modestly positive. All of the reports included the negative impact of this winter’s cold weather.
Just as I enjoy and learn from Warren Buffets annual letter to Berkshire stockholders, I also read and get a lot of value from the annual report from Yale’s endowment. Here’s a link to the current report. Yale’s endowment is the largest in the world and has enjoyed spectacular investment performance, particularly under the stewardship of David Swensen, who wrote one of my favorite investing books of all time, Pioneering… Read More
