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Framework Investing's commentary separates the
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Science Doesn’t Care What Trading Desks are Saying
December 6, 2018

It is 7:30 in the morning and you are on the freeway heading to work. Traffic is moving along smoothly, and your mind turns to matters other than commuting – the jerk at the head office, your dry cleaning that will be ready in t...

Be Skeptical in Investing and in Assessing Climate Change
November 30, 2018

Last week, I had the honor to be asked to speak to a group of graduate students of accounting at Ohio State University about a career in investing. One student asked, “What single piece of advice do you have for someone just...

Agriculture is Broken; AgTech Can Fix It
November 28, 2018

Imagine that you need to break a $10 bill. You hand the cashier the $10 note and, rather than a $5 bill and five $1 bills, he hands back a single $1 bill. Certainly, you would be upset. And if you couldn’t extract another $9 fro...

An Investor’s Take on the National Climate Assessment
November 26, 2018

Friday’s stealth release of the National Climate Assessment report underscores the message I have been delivering in this column regarding the need to prepare investment portfolios for climate change. The Assessment’s Summary ...

Reader Q&A: Representing Short Puts on Financial Statements
November 19, 2018

A Framework member posted a question to me on the popular bulletin board site Quora over the weekend. His question was “How do you properly account for a sold put option on financial statements?” This is a bit of a spe...

Investments that Ignore Climate Change Just Burn Money
November 12, 2018

Like many of you, I have been shocked reading the stories about the Camp fire in Northern California and the Hill and Woolsey fires, just west of Los Angeles. Fires have long been a feature of Californian life, but the concept of ...

When Investments Don’t Go as Planned: IBM Case Study
October 23, 2018

Since April of this year, we have been running a real-time case study related to incorporating option positions into the holdings of an investment portfolio of a positional, value-based investor. As a subject for our case, we used...

Two Tales of One City: The St. Joe Company
October 16, 2018

It would be the best of times, it would be the worst of times… This line – paraphrased from Dicken’s classic tale of the French Revolution – summed up the opinions of two investing giants early in 2011 regarding the real e...

The Biggest Financial Story of Our Lifetimes
October 12, 2018

The biggest financial story of our lifetimes was published this week. Wall Street paid it no heed. True, markets have declined modestly for a few days, driven by – pundits say – general worries about increasing long-term Treas...

More Positives than Negatives for this Unsexy Chipmaker
October 11, 2018

Even before U.S. equity markets performed a subtle imitation of Wile E. Coyote on Wednesday, I had been looking at a chip company I covered as the head of Morningstar’s semiconductor research team – Microchip MCHP. Microchip...

A Small-Cap Set to Ride the Cord-Cutting Wave
September 28, 2018

TV is dead. Long live TV. Three national network channels, PBS, and a few grainy, local UHF stations is what a lot of Gen-Xers like me grew up with. In those days of what is known now as “linear TV”, providers of content aucti...

A Bull in an Underwear Shop
September 21, 2018

One of the best things about working on Framework Investing is the people I meet. A few years ago, when I conducted my first Option Investing “Boot Camp”, one of the attendees was an analyst at a prestigious Midwestern hedge f...

Howard Marks on Business Cycles and the Option Value of Cash
September 14, 2018

As I mentioned in my last article, I recently had the pleasure of attending MOI Global’s Latticework 2018 Conference, at which legendary investor Howard Marks was one of the featured speakers. Marks is co-chairman and co-founder...

Finally an Intelligent Approach to Black Swan Investing
September 7, 2018

Listening to investing practitioners and pundits talk, the lay person might get the impression that investing is a rational application of microeconomics and mathematical principles. This impression is false. The truth is that inv...

Conference Souvenirs: Five Interesting Small Cap Ideas
August 30, 2018

Yesterday, I spent the day at the Midwest IDEAS Conference sponsored by Three Part Advisors, and held at the Gwen Hotel in the City of Big Shoulders, Chicago, Illinois. Three Part holds three conferences dedicated to uncovering th...

Don’t Be an Investing Patsy
August 28, 2018

Poker players must have smiled when the great investor, Warren Buffett, quoted one of their aphorisms in a 1987 investor letter. “If you are sitting at a poker table for 30 minutes and can’t figure out who the patsy is, the pa...

Oracle: The Leopard is Finally Changing Its Spots
August 6, 2018

I have had good reasons to own Oracle and to recommend Framework Investing members to buy it over the past few years. The company has a very strong franchise in databases, database applications, and servers that run databases, and...

Option Expiration: IBM Case Study
July 20, 2018

The option investment we originally published to our Framework Investing members on April 11 of this year and detailed in a series of case study articles is expiring today! When we originally invested in IBM’s downside potential...

Two Crucial Questions for GE Investors
July 6, 2018

Framework Investing subscribers know that I have plenty of egg on my face from my statements about GE: I did not think the firm would need to cut its dividend. It did. I did not think that the conditions in the Power business (who...

Option Assignment: IBM Case Study
July 2, 2018

In late April, we began a case study series investigating how one might use options to express a bullish investment opinion in IBM. This case study was based on a Tear Sheet I had published to Framework Investing subscribers earli...

Why Twitter is a Cash-Burning Machine
June 12, 2018

I was surprised to hear two stock analysts discussing micro-blogging sensation, Twitter, saying how strong of a free cash flow generator the company is. Knowing the struggles the company has had trying to monetize its website, the...

Good Things are in Store for STORE Capital (STOR)
June 6, 2018

In a recent Framework Investing Office Hour session, I spoke with one of Framework's members — hedge fund alum and New York City-based institutional investor, Robert Ruggirello, CFA — about a triple-net lease Real Esta...

Is Netflix Uninvestable? Two Insiders Weigh In
May 22, 2018

In our Framework Investing Office Hour sessions last week, we had several good discussions – one on autonomous vehicles, the other about our recent research and articles on Netflix. One long-time Framework member who dialed into...

Netflix is Uninvestable
May 18, 2018

A great advantage of having a robust framework to assess investments is that it is easy to figure out where the risk in a particular idea is. Our recent members-only research work on Netflix is a case in point. Our process homes i...

Office Hour Recap Videos: IBM Case Study
May 10, 2018

Last weekend, we held the second of two open Office Hour sessions regarding our recent Case Study series on IBM. For those who were unable to attend, we’re posting videos of the presentation here along with some light commentary...

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