The Boyar Value Group’s 1st Quarter Letter 2026
boyarvaluegroup.com · 2026-03-31 · tier T2
Source: Letter · boyarvaluegroup.com dated 2026-03-31. Auto-generated factual summary. Not investment advice. Verify before acting.
In 1Q 2026, major U.S. equity indices declined sharply—the S&P 500 fell 4.6%, the Nasdaq 7.1%—following geopolitical conflict and elevated valuations. However, Boyar Research identifies potential shifts beneath the surface: equal-weighted stocks outperformed cap-weighted indices, and small caps began recovering after years of underperformance. The firm warns that quality stocks like Costco, Walmart, and Cintas trade at valuations leaving little room for error, echoing the Nifty Fifty and late-1990s bubbles. Microsoft, despite strong Azure growth, fell 23.5% as investors questioned AI spending returns. Boyar sees opportunities in overlooked businesses trading at reasonable valuations, including Madison Square Garden Sports and Uber, where price-to-value gaps appear meaningful. The authors caution that geopolitical shocks historically have not caused lasting bear markets without deeper economic problems, and recommend staying disciplined and focused on valuation.
Citations · 6
“the equal-weighted S&P 500 outperformed the traditional cap-weighted index, rising 0.2% compared with a 4.6% decline for the S&P 500”
p#1 · confidence 95%
“Microsoft's capex spending in FY 2025 [ended June 30] was $65 billion, well up from the $15 billion it was spending just 5 years prior”
p#1 · confidence 95%
“At current prices, Microsoft is trading at 21.3x NTM earnings, its lowest earnings multiple since December 2018”
p#1 · confidence 95%
“Costco, Walmart, and Cintas are all outstanding businesses, but history has shown that even outstanding businesses can become mediocre investments when bought at overly optimistic valuations”
p#1 · confidence 92%
“WTI crude rose 77% and Brent crude climbed 95%, with Brent posting its largest quarterly percentage gain since the third quarter of 1990”
p#1 · confidence 95%
“The S&P 500 fell 4.6%, snapping a three-quarter winning streak and posting only its third down quarter since 2022. The Nasdaq fell 7.1%, its steepest quarterly decline since 1Q 2025”
p#1 · confidence 95%
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Mark Boyar
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