Thread by @KailashConcepts

1/10 Have you read our recently published #whitepaper?

The Art of #Stock Picking #Returns

Highlights below ⬇

2/10 “We’ve had 40+ years where all the money went into broadband, or internet, or #Netflix or the cloud and no money went into basic productive capacity…”

–Robert Friedland, CEO, Ivanhoe group of companies

3/10 What follows is KCR’s attempt to create a simple walk-through of the #risks and #opportunities offered today. We believe both the structure and implications of this paper are easy to grasp.

4/10 Yet implementation could be difficult for some as it requires #investors to do the following three things:

5/10 > Avoid speculating on stocks promising #profits in the distant future

6/10 > Don’t follow the crowd in the #stockmarket &stop paying high #fees for opaque private products that require lots of leverage with empirically dubious reporting

7/10 > Hire active managers who pick #stocks using proven methods

8/10 KCR believes the #crisis of #capital misallocation is upon us. For those married exclusively to groupthink, the risks are myriad and conventional failure is likely. The #opportunities have rarely looked better for those willing to embrace the evidence.

9/10 The chart ⬇ updates our favorite metric for estimating long-run #equity returns.

The recent sell-off in equities from the peak on 12/31/21 has left us hovering above the peak of the #dotcom mania. That is what you are getting when you buy the index today.

10/10 Get the full piece here: kailashconcepts.com/white-papers/t…