Incremental Insights #14
September the Cruelest Month
Due to historically lower returns, September is often called the cruelest month for stocks. Reasons include post-vacation selling, tuition funding, and self-fulfilling expectations. However, it's not guaranteed – the S&P 500 has had positive returns in 52% of Septembers since 1928.
The Myth of Capitalism
The dark side of market consolidation in the US
- Reduced competition leads to oligopolies with unchecked power
- Market dominance allows companies to mistreat customers (remember Dr. Dao?)
- Less competition may stifle innovation and economic growth
- Oligopolies squeeze both customers AND suppliers (including workers)
Alphabet has never been this much cheaper than the S&P 500
Nick & Zak's Excellent Adventure: How Nick Sleep and Qais Zaharia Built Their Investment Partnership
The investment strategy that led Nomad Investment Partnership to 10x their money in 14 years:
- Deep research and long-term thinking
- Concentrated portfolios (sometimes 70% in a single stock!)
- "Intentional disconnection" from ephemeral information
- Focus on insights with long shelf life
Nick Sleep and Qais Zakaria's success came from independence, clarity of thought, and high conviction in well researched stocks.
