Bull Sessions (2/1/2022)

Happy Groundhog Day Eve! We hope that Ken will have dutifully checked the carbon monoxide alarm in his house before the session ... but we're pleased to share that an "auction" has started for a non-fungible token of Ken & Mark in toques while dining on pastries. Next? Pączki, of course. We'll visit some Groundhog selections as the clock expires on this year's journey and encourage prudent shopping for Groundhog Challenge XVI.

In this February 1, 2022 Bull Sessions webinar, hosts Mark Robertson and Ken Kavula reviewed the groundhog status of their annual investment challenge and provided updates on their best small companies list. The team discussed the Value Line Median Appreciation Projection's recovery to long-term norms around 10-11%, and examined how small-cap stocks have been heavily pressured in recent months. Ken highlighted particular interest in auto dealership stocks due to their demonstrated pricing power despite inventory constraints, while Mark noted that China-focused holdings like Green Tree Hospitality may be temporarily impacted by Olympic-related lockdowns. The session emphasized the importance of sticking to proven fundamental analysis methods rather than aggressive speculation, as evidenced by the challenging 2021 market year where only 18% of contest participants beat the market.

Ken Kavula demonstrated his stock selection methodology for the 16th annual challenge, emphasizing disciplined, research-backed approaches over fence-busting swings. The team reviewed the current contest standings heading into the final trading days, with multiple investment clubs prominently featured on the leaderboard, reinforcing that systematic investment approaches and clubs consistently outperform the broader market. The webinar also highlighted the humbling effects of 2021's market volatility on growth-focused investors like Cathie Wood, while celebrating longer-term winners like Ruth and the success of disciplined club-based investing strategies.