Perspectives
Why did the central banks get it so wrong?
June, 2023
At a client meeting this week we were asked why the central banks have made such a hash of managing inflation over the past two years. This is an interesting question to us, as we believe the answer to this question is rooted in the global response to the financial crisis of 15 years ago. […]
Inflation is falling, just not as quickly in the UK
May, 2023
The inflation rate in the UK remains higher than in most other European countries. Interestingly, this is not the case in the US where inflation has fallen quicker and by more over the past six months. In fact, unlike in the UK and Europe, it is likely that the US inflation rate will be close […]
What is the debt ceiling in the US and why does it matter?
May, 2023
Over the past weeks there has been an issue holding back investment markets which is a US phenomenon: the debt ceiling. This is an issue peculiar to the US but it affects us all. The debt ceiling, also known as the debt limit, is the maximum amount of money that the US government can borrow […]
The Pound in Your Pocket
May, 2023
Some of our older readers may remember the Sterling crisis of 1967 and the accompanying black and white footage of Harold Wilson, then Prime Minister, explaining to the British public that this did not mean that the “Pound in your pocket or purse, or in your bank, has been devalued.” Ted Heath noted that this […]
Economic Moats
April, 2023
We have written previously about how certain companies exhibit a competitive advantage which makes it difficult for its earnings to be eroded away by a competitor. In the recent inflationary period, it is these companies which have been able to increase prices whilst not destroying demand in the process. Microsoft, a common position in three […]
Late frosts
April, 2023
Gardeners among our readers will be very conscious of the damage a late frost can cause, especially if it has been preceded by clement weather which has encouraged buds to form and birds to settle down into comfortable nests. One night below freezing at just the wrong moment can devastate an apple harvest and spoil […]
Banking 101
April, 2023
Charlie Munger, who at the age of 99 is the senior half of the nonagenarian duo that run Berkshire Hathaway, is famous for his quip that runs, “Show me the incentive and I’ll show you the outcome.” It chimes with Upton Sinclair’s remark that “It is difficult to get a man to understand something, when […]
Dividends
March, 2023
Tacit strategies have a core of investments whose investment approach can be described as dividend investing. The investment approach focusses on dividend levels and growth prospects as a good predictor of future performance of a stock. Dividends are paid out of cashflows a company generates but what exactly are they? When a company earns a […]
Never Bet Against America
March, 2023
Previously we have written about the King and the conman trading their understanding of financial compounding. Luckily, what the King lacked in financial acumen he more than made up in regal authority. If there is a modern monarch of finance, it is surely Warren Buffett. Now known to investors as the “Sage of Omaha,” in […]
Banks and the financial system
March, 2023
Whilst our strategies have no exposure to Silicon Valley Bank (SVB) or Credit Suisse this week we feel it necessary to provide a narrative to market movements and events surrounding the banks. At its core, SVB experienced a run on its deposits as clients realised that it had not managed its asset base appropriately and […]