Though the homebuilders and Disney benefit from other factors than our banking and media businesses, which are being more so affected by the voting machine in the interim, the weighing machine might grow more for our banking and media companies as the cost of capital rises and competitors disappear. Cheap money for our company’s competitors is like a mirage. It looks so great, but it eventually vanishes and leaves you without liquidity just when you need it. All you are left with are the sands of time.
Cole Smead, CFA, is managing director and portfolio manager at Smead Capital Management.