Welcome to the investing community at DailyStocks where we believe we have some of the most intelligent investors around.
While we have had an online presence since 1997 as a portal, we are just beginning the forums section now. Our moderators are serious investors with MBA and CFAs with practical experience wwell-versed in fundamental, value, or technical investing.
We look forward to your contribution to this community.
To the Shareholders of Sequoia Fund, Inc.:
As of this writing, the Sequoia Fund is down 33.2% year-to-date versus a decline of 40.9%
decline for the
The magnitude of these declines, both for Sequoia and the index, clearly caught us by
surprise. With benefit
of hindsight, we believe now that much of the decline is logical and reflects a decline in
aggregate earnings power of American business from previously reported levels. In other
words, the earnings
power of U.S. companies appears to be less than investors, including ourselves, previously
What differentiates this current bear market from all of those we have experienced in our
is the combination of rapidity and severity as well as the fact that it did not begin from a
visible excess of
speculation in equity prices on the whole or in significant sectors of the stock market.
Instead, the bear market
originated from excessive speculation in the housing market and in the derivative securities
created from the mortgages that financed the housing bubble.