Aram Fuchs's blog

    Keynes, Harrison & Gross

    September 1, 2011 by Aram Fuchs   Comments (1)

    Ed Harrison runs a blog called, which I love. This article is a must read. He has an amazing ability to reduce arcane concepts into power-packed posts. Any one allocating capital should appreciate. I have been surprised by how many portfolio managers and analysts think that the study of Economics is not relevant to securities research.
    To me, those thoughts just show you how powerful Economics theory really is -- It seems to me that one theorist, Keynes,... Read full post

    /10 stars ( votes)

    The Merits Of Consuming Capital

    August 28, 2011 by Aram Fuchs   Comments (4)

    While I am quite worried about the macro environment it does not mean that there is no opportunity to invest on the long side.
    User Extrafertile asked in respond to my "Disagreeing With Uncle Warren" piece, "If you are right to expect a double dip recession, Aram, what do you think is the best way to profit from it?"
    Well Extrafertile, I have been looking more for companies that are consuming capital that... Read full post

    /10 stars ( votes)

    Disagreeing With Uncle Warren

    August 27, 2011 by Aram Fuchs   Comments (9)

    Dear Capitalist Collective Member:
    Warren Buffett made quite a stir this week when he bought a preferred equity stake in Bank of America [NYSE: BAC].  It was a clear endorsement of BAC's strategy and balance sheet.
    Is it heretical to disagree with Uncle Warren?  I hope not as this is the second time I have disagreed with him recently so I am a little worried.
    The last time I... Read full post

    /10 stars ( votes)

    Announcing The Finalists

    August 25, 2011 by Aram Fuchs   Comments (0)

    Dear Capitalist Collective Member:
    I really enjoyed hosting the Capitalist Collective Talent Search. There were many constructive discussions that benefited everyone.
    I am now pleased to announce the finalists:
    For the senior analyst position:
    Eric Wu, user phw234
    Brad Grounds, user TheMLPinvestor
    For the junior analyst position:
    Pieter... Read full post

    /10 stars ( votes)

    Buffett Provokes Again (In The New York Times & On Capitalist Collective)

    August 15, 2011 by Aram Fuchs   Comments (0)

    I was pleasantly surprised to see Warren Buffett's byline when I opened the op-ed page of the New York Times this morning. While I am not a blind acolyte of the man I find him bright and stimulating enough to attend his annual meeting every year in Omaha.  He is one of the great American financiers -- that is clear.But the real thing that brings me to Omaha is the way he conveys his opinion is modest yet... Read full post

    /10 stars ( votes)

    The Short & Volatile Journey From QE II Portends QE III

    August 13, 2011 by Aram Fuchs   Comments (6)

    , ,

    It is approaching a year since Bernanke delivered his Jackson Hole speech announcing QEII.
    Mr. Market loved the concept.  The Russell 2000 rocketed up 30% in the three months afterwards and Bernanke later bragged about the results his policies had on short-term stock prices.
    Calculatedriskblog has started a "Q3 watch" as the Jackson... Read full post

    /10 stars ( votes)

    Americans Bearing Negative Real Rates & Greeks Bearing Bonds

    August 9, 2011 by Aram Fuchs   Comments (17)

    During these tumultuous times it is amazing how quickly earth-shattering events breeze past the Bloomberg.
    It was just a couple of weeks ago when the Europeans had to bail out the Greeks for a second time and the market briefly rallied because the can was successfully kicked down the road.
    Today the Fed promised to keep interest rates near zero, which is substantially below the CPI, and Mr. Market seemed to think that this... Read full post

    /10 stars ( votes)

    A FILOD, Munger, Volcker & This Week

    August 7, 2011 by Aram Fuchs   Comments (16)

    User Nick linked to my favorite Economics paper ever as his FILOD [Favorite Investing Link of the Day] yesterday. It is titled “Academic Economics: Strengths & Faults After Considering Interdisciplinary Needs” by Charlie Munger.

    It makes a worthwhile read on the Sunday before what should be a hectic week. Specifically Munger's coinage of the phrase,... Read full post

    /10 stars ( votes)

    An Open Letter To Dan Loeb

    August 1, 2011 by Aram Fuchs   Comments (11)

    Daniel Loeb
    Third Point Partners
    390 Park Avenue
    NY, NY  10022
    July 29, 2011
    “It is silly to extend tax cuts to the richest 2% of Americans in light of the circumstances that we are in … ”    David Stockman, Republican.
    Dear Mr. Loeb,
    Like many in our industry I look forward to reading your letters.  You often show bravery and independence by challenging executives with inflated senses of... Read full post

    10/10 stars (1 votes)