I would not normally write a post about a single podcast, but I am making an exception today for Chris Bloomstran’s interview on The Investor’s Podcast which was posted over the weekend.
The interview has extensive commentary regarding Berkshire Hathaway, which is no surprise given Bloomstran’s habit of covering the company in great depth in his recent annual reports. However, what I found even more interesting is his extremely cogent argument regarding the overall U.S. stock market.
Those of us who have been investing for multiple market cycles clearly recall the high valuations of the late 1990s and the “lost decade” that followed for stock market returns. Even companies, such as Microsoft, that had excellent business results during the decade posted terrible market returns.
Why did U.S. stocks perform so poorly during the 2000s and so well during the 2010s?
I will avoid writing more myself and urge those who are interested in the topic to listen to the podcast (or read the transcript) since Bloomstran does an excellent job of explaining the situation that took place during the ‘00s and why we are likely in for a similar period in the decade to come.
The next issue of the Weekly Digest will be posted on Wednesday. Have a great week!
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