Focused Compounding cover image

EP 337. Snap Judgments, Gaming stocks, Net-nets to look for, and a case for America’s Car-Mart

Focused Compounding

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Can You Short This Stock as a Bet on Steel Prices?

Don't short this stock as a bet against steel prices. It is basically operating now, far from being a net net. The company earns poor returns on capital in all years,. except when supply is tight and then it earns an absolute bonanza. In the kicker years, it's 20%. That jumps up to more than 50%, which doesn't sound that high. Remember your buying at discounts to book stuff? If bond is suddenly worth half of its value - you know, it's quite a bond. Listen to our inflation. Pa, cas, we did a couple of weeks ago. Yes.

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