Q1 2021 – Annandale Capital Quarterly Commentary

Interest rates are, perhaps, the single most important variable in finance. As Warren Buffett once noted, they act like gravity on the valuation of every asset class. Exceedingly high rates necessitate lower valuations. Exceedingly low rates make almost any valuation justifiable. Today, there is a strong consensus that interest rates are heading higher. The purpose of this letter is to address that view. Download Q1 2021 Commentary