In their latest Q4 2021 Letter, Ruane Cunniff explain why Mr. Market has evolved into a much more formidable foe. Here’s an excerpt from the letter:
We would be lying if we said we didn’t occasionally long for the days when value investing was still a secret, “scuttlebutt” research was still overwhelmingly the province of journalists and Bill Ruane could count himself as one of only three members of his Harvard Business School class who chose to take a job on Wall Street. Odd as it may sound, though, we mostly like how competitive the money management business has become.
As investors, we relish the challenge of matching wits with some of the world’s most creative and ambitious talents.
As people and citizens, we welcome the degree to which Mr. Market has evolved a more thoughtful, wellrounded, longer-term approach to rendering judgments—even if it makes him a more formidable foe.
He’s more attuned than he used to be to the virtues of businesses that sacrifice the profits of the present to delight the customers of the future, and he casts a more skeptical gaze on companies that maintain a damaging or unsustainable relationship with any of their stakeholders, whether shareholders, customers and employees or broader constituencies like society and the environment.
You can read the entire letter here:
Ruane, Cunniff & Goldfarb Q4 2021
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