Losch Management Company LLC
Client Letters 2000
Lunch Money Indicators

Client Letter January 2000

Sir John Templeton's sixteen rules for investment success - Sixteen simple rules that will help any investor be successful. In no way, do any of these rules conflict with anything taught by Warren Buffett and Charlie Munger.

Client Letter February 2000

Index Funds - a wonderful new vehicle? So says Tom Gardiner. But money has been pouring into Index funds for the last ten years. Now this flow of money has created distortions in the capital markets and threatens to make passive management passé.

Client Letter March 2000

Berkshire Hathaway, Stock comment. This Stock's price offers a compelling value at today's prices. Buy now. This is one decision that will last for Ten years.

Client Letter April 2000

Big Al and the Baseball Bat - (It is time to turn off the bubble machine.) A comment on Fed policy in the spring of 2000, and impact of its policy on the stock market and the nation's economy. Will a soft landing really work?

Client Letter May 2000

Charlie Rules  - This is perfectly obvious, but very little understood." Quote from Charlie Munger at the 2000 Berkshire Hathaway annual meeting.

Client Letter June 2000

Small Retail Stocks - A comparison of four retail specialty companies. Abercrombie & Fitch, American Eagle Outfitters, Buckle, and Pacific Sunwear. 

Client Letter July 2000

Identifying Problems - How Higher interest rates and a slowing economy effect tech stocks. And why a little pain is good for the economy.

Client Letter August 2000

Lunch Money indicators - Options -  Discusses the effect of stock options on the behavior of corporate managers, and how this behavior may differ from managers who actually own a substantial position in the stock of the company. This can be hazardous to the financial health of shareholders.

Client Letter September 2000

Style Drift - What happens when mutual fund managers chase Performance at the expense of investor suitability rules.

Client Letter October 2000

Efficient Markets?  -  How rational are market values: tech stocks in the stratosphere in March, but 80% less in October.

Client Letter November 2000

Build it and they will come - Why easy money is bad for the stock market, and why corporate CEO's think that if they are smart enough to get their hands on large piles of cash they must be smart enough to spend it.

Client Letter December 2000

Bear Tracks - The bear may be loose but the fun has only begun. "The good news is that there are many old economy stocks that are attractively priced. When you look at your December statements you will begin to see some new names there. This does not necessarily mean that I think the market as a whole has bottomed. It means that I am finding good companies at attractive prices, and that I am afraid that they may not get much cheaper even if the rest of the market turns back down."