Ben Claremon on being a contrarian investor

So much of being a good investor is being a contrarian...  To be a good contrarian you have to be willing to hold your position in the face of news that is not particularly good, because that's how you make a lot of money.

~ Ben Claremon, interview with The Accent Podcast, 43:00 mark, September 18, 2020

Ben Claremon on fear and greed

The reason why there will always be room for people like myself in this world is because people swing between greed and fear, and emotions dominate markets. 

~ Ben Claremon, "Wealth #2: Investing in Stocks like a Pro; with Ben Claremon of Cove Street Capital," The Accent Podcast, 13:50 mark, September 18, 2020

Ben Claremon on being a generalist

What I really love about investing as a career is that you're constantly learning.  Constantly reading, constantly learning.  And as I always say, as an investor you have to know a little bit about everything, because as a generalist... I have to know a lot.  I have to have a very broad understanding of different kinds of companies and business models, and then I can dive deep and understand individual companies... at a nuanced level.  I approach new business models and companies all the time with very little backing aside from pattern recognition, a lot of time spent analyzing businesses which give you a framework which you can use.

~ Ben Claremon, "Wealth #2: Investing in Stocks like a Pro; with Ben Claremon of Cove Street Capital," YouTube.com, 4:55 mark, September 18, 2020

Kevin Duffy on investing in retailers

Which retailers should weather a recession best?  Those which provide basic necessities and sell things at a discount.  As the late Mark Butler, founder of Ollie’s Bargain Outlet, used to say, “America has always loved the bargain.  It will never, ever go out of style.” 

Investors should also seek companies expanding globally, occupying defendable niches or riding tailwinds, e.g. the trend towards casualization in footwear and apparel. 

Valuations matter.  Struggles at the low-end are well known and baked into stock prices, less so troubles mounting at the high-end.  As pain works its way up the economic ladder, best to steer clear of those retailers exposed to the higher-income consumer.

~ Kevin Duffy, "Dead Canary in Aisle 7: Is the high-end consumer safe?," The Coffee Can Portfolio, p. 17, June 15, 2022

Berna Barshay on activist pressure on retailers

Companies have spent a ton of time and effort to get e-commerce operations in alignment with bricks-and-mortar stores when it comes to marketing and customer experience because they know it is the best way to build customer loyalty and increase share of wallet.  Why un-do all this work, work that was grounded in good corporate strategy… whether we are talking about Kohl’s, Macy’s, or any other company.

~ Berna Barshay, retail expert at Empire Financial Research, "Kohl’s, Guess and other consumer companies are facing off with activist investors. One expert says it’s a signal of optimism," MarketWatch.com, April 12, 2022

Berna Barshay on difficult environment for retailers

Retail, as measured by the SPDR S&P Retail Fund (XRT) is the worst performing sector this year, down 32% year to date – even worse than tech, as measured by the Technology Select Sector SPDR Fund (XLK). Take a look...

It has been the hardest operating environment for retail planners and buyers in the 24 years I have been following this. Between the supply chain clogs – which are still there, rapidly shifting consumer preferences, inflation, a hazy economic outlook, and consumers shifting their purchase timing... it's easy to get tripped up.

So while it is tempting to cast stones at planners for not doing better, and the stocks have been terrible, I think there are incredible bargains to be had not only at the mall later this summer... but right now in the stock market.

~ Berna Barshay, "Explaining the Retailer Inventory Glut," Empire Financial Research, June 22, 2022

Miles Kington on the difference between knowledge and wisdom

Knowledge is knowing that a tomato is a fruit. Wisdom is knowing not to put it in fruit salad.

~ Miles Kington, British journalist, musician and broadcaster