Coffee Can Newsletter – December, 2017

“Only when the tide goes out do you discover who’s been swimming naked” – Warren Buffett. When the broader market is undergoing a euphoric or bullish phase, most stocks do well regardless of the quality of their underlying fundamentals. However, when the euphoria ends, stocks with poor underlying fundamentals are decimated, resulting in significant capital erosion for investors who did not adequately understand the weak fundamentals of their portfolio companies.