Lance Helfert on CNBC Last Friday

My boss at West Coast Asset Management continues to be fixture on the TV circuit. Last Friday he was on CNBC discussing some of our research on rising input prices and the ultimate impact on clothing retailers. The question we are interested in answering is which retailers are going to be able to pass on higher input costs to consumers, assuming cotton prices stay at elevated levels for a while. Our thesis is that investors in clothing retail stocks should make sure the companies that they own have pricing power and are not dependent on discounting. See if you agree...

Lance Helfert on CNBC Again

My boss at West Coast Asset Management was on CNBC again last week discussing some of our recent research on two of WCAM's positions, Clorox (CLX) and Kimberly-Clark (KMB). While I am certainly not bullish on the S&P 500 as whole (given that it is trading at a Shiller P/E ratio around 23x), it is remarkable how much consumer staples have been left behind in this rally. Everything that is cyclical and small has gone straight up since the announcement of QE2 and everything that is safe and stable has lagged by a large margin. These are tough times for value investors but if you believe in reversion to the mean it is unlikely that the current return disparity will last much longer.

Amazing Michael Steinhardt Video

If you watch or read nothing else over the next few days, I implore you to spend 25 minutes watching this interview with Steinhardt. This is the first time I have seen him speak so extensively and I am incredibly impressed by his candidness and thoughtfulness. Here are some topics he discusses that I think are very relevant to the current investment climate:

1. His perception of the current stock market rally
2. His expectation for sustained and lasting returns in the equity markets
3. What both younger people with excess cash and older people without substantial liquidity should invest in going forward
4. His feelings about the "ugliness" that has plagued Wall Street over the last few years and his concern that we have not really learned any lessons as of yet
5. His fear that despite all the change rhetoric from the Obama administration, people do not appear willing to accept short term but necessary pain so that the entire economic system can function in the future
6. He discussed the role that hedge funds should play in light of the Madoff scandal and recent returns that indicate that very few managers were actually hedged to protect against downside
7. A Jack Bogle-like commentary regarding the lack of fudiciary obligation that he sees among most of today's money managers

(Hat tip to Trader Mark and Guru Focus)

Bernanke Parody Video

From the Columbia group who created the "Regulators" video about Warren Buffett, here is an equally entertaining one about Ben Bernanke using Boyz II Men's "On Bended Knee" for inspiration.

The Absolute Worst Way to Solve the Economic Crisis

This video is hilarious. While their plan might stimulate consumer spending I worry that it would lead to more vacant apartments around the country. Enjoy!
(H/T to Zero Hedge)