Dock Street’s Letters
For the last 30 years, the Dock Street team has sent out over 500 emails to their clients sharing our investment insights, philosophy, responses to world events, and more. Many of Dock Street’s letters will now be shared here as well.
The Bond Bear Market
Another asset class suffering permanent value destruction In another note we introduced the idea of permanent value destruction vs the temporary variety. Hundreds of Cryptocurrencies and recent IPOs without earnings were examples. But these markets are relatively small when compared with the bond market. Total outstanding US Government Bonds are worth over $30 trillion, almost […]
The Millennials’ Correction
Demographics as Destiny Nobody is born knowing anything. As a consequence, each generation tends to learn the same lessons as the prior ones, but under some different circumstances. Millennials just learned that the stock market doesn’t always go up. It mostly goes up, but that “mostly” smooths over some rather rough stretches.
No Recession in Discretionary Spending
Consumers aren’t hunkering down despite higher costs Nobody has to go to a restaurant. It’s a choice. When times are tough and you need to be more cautious with spending, going to restaurants is a simple thing to cut out of your budget. Lately the rising costs of nearly everything has investors concerned that a […]
In Spite of All The Danger
Business continues as usual The beginning of 2022 has been a tough start for the market—and it’s not even half over. There’s a laundry list of things to worry about, and prognosticators are tripping over themselves to warn you about how it’s all about to get much worse. While the companies we own have fallen […]
Value Destruction—Temporary and Permanent
Cash profits are the tell In every bear market the value of some businesses are destroyed forever. (And yes, this is a bear market.) In the 2000-2002 bear, it was the Dot-Com stocks without business profits that never recovered. In 2008, it was the financial stocks that had “pretend profits”— Citibank fell from $550 to […]
Not Unprecedented
So far this is a “normal” year for stocks, even though it doesn’t feel that way The chart below helps us put this year’s nasty stock market in perspective. The green dots mark the gain or loss for the full year, while the gray bars indicate the largest loss during that year. The average loss […]
How We Think About Corrections
Getting through to the other side of the valley This is the third time in four years that the market has fallen this hard: the fall of 2018, the winter of 2020 and now this. Do those past corrections tell us anything about what to expect this time? 2020 was an outlier because of lockdowns, […]
Individuals Matter
History can teach us something about investing The war in Ukraine has revealed a truth about history largely ignored for a couple of generations—individuals matter and individuals make history. Vladimir Putin and Volodymyr Zelensky prove the point. Since Karl Marx developed the idea that history could be approached scientifically, the ancient emphasis on individual actors […]
The Energy Crisis of 2022
War divides the world, threatening prosperity The invasion of Ukraine is a human catastrophe and threatens to be a serious problem for the world economy. The price of crude oil is up 60% this year and might be on its way to a record above $150. More than one recession has been associated with high […]
What Would Tom Hodgman Do Today?
Tom Joined Dock Street in 1995—the best partner anyone could ask for When Dock Street really came together in the mid 1990’s, the Greenwich office was filled with highly experienced investors. So on days like today I often ask myself what would Stillman Rockefeller, Jack Howell, and Jon Old be doing with their stock portfolios? […]
The 20 latest Blog Posts
- The Bond Bear Market
- The Millennials’ Correction
- No Recession in Discretionary Spending
- In Spite of All The Danger
- Value Destruction—Temporary and Permanent
- Not Unprecedented
- How We Think About Corrections
- Individuals Matter
- The Energy Crisis of 2022
- What Would Tom Hodgman Do Today?
- Isn’t Investing Just Gambling?
- Collateral Damage
- What is Growth?
- Future Corporate Earnings
- The Taxi Driver Signal
- Rooting for the Stocks We Don’t Own
- Corporate Profits Drive The Market
- The Correction Season
- Business Sales Recover, and Then Some
- Scouting the Terrain