Edward, Ex Cathedra

edward, ex cathedra

We can be certain of some things about Edward Studzinski. As an investor and co-manager of Oakmark Equity & Income(OAKBX), he was consistently successful in caring for other people’s money (as much as $17 billion of it), in part because he remained keenly aware that he was also caring for their futures. $10,000 entrusted to Edward and co-manager Clyde McGregor on the day Ed joined the fund (01 March 2000) would have grown to $27,750 on the day of his departure (31 December 2011). His average competitor (I’m purposefully avoiding “peer” as a misnomer) would have managed $13,900.

As a writer and thinker, he minced no words.

The Equity and Income Fund’s managers have both worked in the investment industry for many decades, so we both should be at the point in our careers where dubious financial-industry innovations no longer surprise us. Such an assumption, however, would be incorrect.

For the past few quarters we have repeatedly read that the daily outcomes in the securities markets are the result of the “Risk On/Risk Off” trade, wherein investors (sic?) react to the most recent news by buying equities/selling bonds (Risk On) or the reverse (Risk Off). As value investors we think this is pure nonsense. 

Over the past two years, Ed and I have engaged in monthly conversations that I’ve found consistently provocative and information-rich. It’s clear that he’s been paying active attention for many years to contortions of his industry which he views with equal measures of disdain and alarm. 

I’ve prevailed upon Ed to share a manager’s fuss and fulminations with us, as whim, wife and other obligations permit. We’re pleased to announce that we’ve collected his essays here.  We’ve dubbed it “Edward, Ex Cathedra,” since he, like the pontiff, speaks quietly but with unquestioned authority (on this point, Ms. Studzinski demurs).

The Boys of Summer

Everything is on such a […]

The Fifty Year Reich

  “It is dangerous to […]

Nothing Personal, It’s Just Business

“This is the business we’ve […]

Survival of the Flushest?

“Cynic, n. A blackguard whose […]

“What Goes Around ……”

Democracy – “The substitution of […]

Behind Door Number Two Is?

  “I and my public […]

Priceless – Worth Absolutely Nothing!

“Under this flabby exterior is […]

What Price Integrity?

“Question in a Field” by […]

Behind the Curtain

“Moon in a barrel: you […]

Have We Been Here Before?

“The past is never dead. […]

The Black Swan of Brexit

“A bank is a place […]

All That Glitters ….

By Edward Studzinski One should […]

 The Honorable Thing

“Advertising is the modern substitute […]

The Weather

“When we unleash the dogs […]

This Time It Really Is Different!

“Every revolution evaporates and leaves […]

Where Are the Jedi When You Need Them?

“In present-day America it’s very […]

Charge of the Short-Pants Brigade

“What is youth except a […]

The Price of Everything and the Value of Nothing

“The pure and simple truth […]

We Are Where We Are!

  “Cynicism is an unpleasant […]

We Are Where We Are, Or, If The Dog Didn’t Stop To Crap, He Would Have Caught The Rabbit

“I prefer the company of […]

Potpourri

Some men are born mediocre, […]

Lengthening Noses

By Edward Studzinski “A sign […]

Liquidity Problem – What Liquidity Problem?

“Moon in a barrel: you […]

There’s Got to be a Pony In This Room …….

“Life is an unbroken succession […]

We’ve Seen This Movie Before

By Edward Studzinski “We do […]

Strange doings, currency wars, and unintended consequences

Imagine the Creator as a […]

Reflections – 2014

By Edward Studzinski The Mountains […]

Investing – Why?

“The most costly of all […]

Money money money money money money

“The mystery of the world […]

 Flash Geeks and Other Vagaries of Life …..

“The genius of you Americans […]

Feeding the Beast

“Finance is the art of […]

It Costs How Much?

A democracy is a government […]

It’s The Money, Stupid!

“To be clever enough to […]

Does Size Matter?

By Edward Studzinski  “Convictions are […]

Motion, not progress

Cynic, n.  A blackguard whose […]

Quo Vadis Japan

I go out of the […]

Skin in the Game, Part Two

The trouble with our times […]

“Skin in the Game, Part One”

“Virtue has never been as […]