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.
Trimming expectations in the short-term The chart below illustrates the 18% gain for the stock market so far this year. At this rate the market will be up over 30% in 2021—an outcome we find unlikely.
The stock market saw this coming Another historic chart, but this time it’s good news. Business sales in April were up 40% from the Pandemic year before. A normal good year would show a 15% gain in sales.
Defending an argument, or trying to learn? Everyone’s talking about inflation these days. That makes sense—prices for all kinds of things are increasing at higher rates than we’ve seen in years. Some of this is simple arithmetic. 2020 had collapsing prices. Inflation is typically measured against last year. As the economy recovers in 2021, increases […]
Investment opportunity, disrupter, fad? Twelve years ago, in the depths of the financial crisis, a white paper titled “Bitcoin: A Peer-to-Peer Electronic Cash System” was published under a pseudonym. The next year, software was released making Bitcoin the first operational cryptocurrency. Two years later, it was still a curiosity, and one person used 10,000 bitcoins […]
How to protect our investments from inflation A couple of weeks ago we discussed the current economy and concluded that we are in the midst of a massive boom in activity. But is the economy running too hot? Is this a real economic expansion or one only fueled by massive cash creation by the Federal […]
Sharing some of what we read We like communicating our thoughts in writing. But sometimes someone else says it so well that it’s better to just share what they wrote. A research firm that we’ve subscribed to for decades wrote the following this weekend: “A lesser-known pearl of Wall Street wisdom says that sometimes the […]
But Owning Multinationals Nearly every business we own is based in the United States. But that doesn’t mean these companies don’t benefit from the growing global middle class. To the contrary, many of the larger US companies are “multinationals” that do a majority of their sales outside the country.
And once you found them, don’t let go There are two fundamental ideas that guide our process at Dock Street: Long-term business ownership is the primary wealth creation engine. The stock market offers investors the opportunity to partner with entrepreneurs and managers who focus on long-term business improvement.
One year ago the market crashed—who sold and who didn’t? Simply buying a broadly based stock index rather than a portfolio of individual stocks is a rational plan. But there’s a catch. Experience suggests that investment success can be defined as avoiding the mistake of selling at the worst possible moment. And the stock market […]
The latest pullback in stocks In the last few days stock prices have fallen modestly, with most of the damage in the types of stocks we own in our portfolios. The reason for this might be lurking in the following two charts. First is the cash money supply–checking accounts and currency. This is a 50 […]
The 20 latest Blog Posts
- Reading from Primary Sources
- Profits over Headlines
- The Bitcoin Bear
- 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