Intelligent Investor, Jason Kaspar’s 1st Quarter Letter For Dunamis Capital & Kaspar Partners

I would really like to thank my friend Peter for sending me this and putting me in contact with Jason Kaspar. Mr. Kaspar is a student of intelligent investing and runs Kaspar partners he also shares his market comments on his blog Kaspar’s Market Insider . Jason has been racking up 26.9% returns since inception and a 4.94% return net of fees for the quarter.

I have been fortunate enough to be allowed to post his quarterly letter. Enjoy!

Click Here To Read Jason’ Kaspar’s Quarterly Letter To Partners (as PDF)

My Favorite Sections Of The Kaspar Quarterly letter:

1. Mr. Kaspar’s analysis of recent investor behavior and market psychology. I highly recommend reading this section as it is on
2. Pavlovian responses and behavioral conditioning.
3. Kaspar’s analysis of Einhorn’s book “Fooling Some People All Of The Time”
4. The section on acquiring gold.
5. Kaspar’s analysis of business cycles and Inflation/Deflation.

Excerpts From The Letter: (Via Kaspar Quarterly Letter)

“The  latest  rally  has  been  at  least  partially  predicated  on  the  slowing  decline, possible  even bounce of world wide production.   This  is exactly  the wrong  thing  to be  looking at because  it promises to give investors a head fake if we are in a non-normal cycle.   “

“Most investors seem to be completely missing where inflation is likely to come from if it were to occur in the short term.  Not an increase in money supply but as a result of a large deterioration in trust.  The money supply is linked of course but is not the driver unless the government takes much  broader  action  than  it  has  to  date.    If  this  thinking  is  correct,  there  will  be  continued deflation  before  the  inflation.  “

“The  dynamics  of  the  inflation  and  deflation  debate  are  very  interesting  to me.   Personally,  I believe  that  if you had  to choose between a  two  standard deviation event of either  inflation or deflation,  it  would  be  better  to  choose  the  deflation  road.    For  the  longevity  and  future positioning  of  a  nation,  deflation  is  better  than  inflation.    This  completely  goes  against  the prevailing consensus line of thinking. “

Click Here To Read Jason’ Kaspar’s Quarterly Letter To Partners (as PDF)