A Diamond in the Rough

Lucara Diamond is a classic FMT Investment Advisory Special Situation. The business has the following characteristics: An aligned management team and board of directors who own 21% of the common shares Profitable (has paid out $257 million in dividends since 2014) A strong balance sheet with no debt An attractive valuation (9.7x TTM earnings) with…

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Huge Potential Ahead

I believe we are sleepwalking into a major rally… oil is undersupplied by at least 500,000 barrels per day. Crude inventories are depleting and the decline curve (well depletion) never sleeps. Meanwhile, oil companies haven’t been this cheap versus the WTI spot price in 25-30 years. As for the macro, summer travel is upon us,…

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You Have Got to Get This

After having studied Warren Buffett while also observing investor personalities as a money manager, I believe there are two primary investment traits that Warren Buffett has that most simply do not possess: He intrinsically understands time is the friend of good businesses and the enemy of bad businesses He is focused on the long-term Identifying…

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The Winning Hand

Over time (typically between 6 months and 3 years), stock prices will approximate the intrinsic value of the businesses they represent. If you’re a speculator or you base your investment decisions on emotion, intrinsic value means absolutely nothing to you and we wish your hard-earned money well with your magic eight ball. And if you…

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Grow with the Wise Man

There’s an age-old adage saying that what the wise man does in the beginning is what the fool does in the end.  In investment parlance, a fortune can be made when an investor becomes bullish on markets and assets before a bull market ensues. This sounds easy, but it is extremely difficult to implement psychologically.…

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It’s Not Time Yet

To paraphrase Sir John Templeton, bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria. In the short-term, markets aren’t about math (though they always revert to it). They are about psychology. This bull market began in March of 2009. The psychology of the markets was as pessimistic as…

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Huge Money Trends for Serious Money

FMT Advisory’s research has identified a few money trends that we have just begun to allocate capital towards. One huge money trend we are invested in is that of value businesses beginning to outperform their sexy growth counterparts as the growth-value cycle shifts. When economic growth is tepid, investors pay up for companies that can…

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The Tale of Two Businesses

To steal a line from the great author Charles Dickens, “it was the best of times, it was the worst of times” for two Superinvestor Wealth Compounders around their recent earnings reports. It is not really the worst of times for either Nomad Foods or Platform Specialty Products for serious money investors, but their share…

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