This month marks the 25th anniversary of Kenneth Fisher’s Forbes magazine column, and in his latest piece Fisher offers his thoughts on what has changed — and what hasn’t — in terms of his portfolio management advice. Among the principles Fisher says he still espouses: Avoid overpaying; Don’t just rely on the price/earnings ratio as a valuation metric; also look at the price/sales and price/book ratios; Compare companies both to the broader market and to their peers; Buy quality cheaply; Learn from your mistakes;
Fortune is running its annual “Best Advice I Ever Got” issue, with respondents ranging from golfer Tiger Woods to Google CEO Eric Schmidt to former Secretary of State and Ret. Gen. Colin Powell. It’s an interesting feature that often offers timeless, valuable wisdom. In the video below, Warren Buffett shares the best piece of advice he’s ever received, something he picked up 60 years ago from the late, great Benjamin Graham.
Marc Faber, the money manager and Gloom Boom & Doom Report editor who has an excellent track record of market calls, sees severe inflation coming, and says investors should be putting their money in gold and equities — not bonds and cash. Faber says he thinks we most likely saw the market bottom on March 9, in part because any major drops in the market will be met with more government stimulus. But he also says he has “zero” confidence in the government’s ability to reduce deficits and prevent big-time inflation.
Every other issue of The Validea Hot List newsletter examines in detail one of John Reese’s computerized Guru Strategies. This week’s issue looks at the Benjamin Graham-inspired Value Investor strategy, which is up more than 26% this year and has averaged annual returns of more than 16% since its July 2003 inception (vs. an average annual loss of 1.4% for the S&P 500). Below is an excerpt from the newsletter along with several top-scoring stock ideas based on the Graham investment strategy. Taken from the June 26, 2009 issue of The Validea Hot List Guru Spotlight: Benjamin Graham Today, many […]
A lot of investors and strategists are spending a lot of time these days trying to envision what the investment landscape will look like when the economy and market settle down. But growth stock guru William O’Neil, the founder of Investor’s Business Daily, says talk of a new era of investing is off the mark. “Actually, I think the market has reinforced almost every single thing we had in the book [his How to Make Money in Stocks, first published in 1988] years ago from the very first edition,” O’Neil tells MarketWatch’s Chuck Jaffe. “The market is driven by the […]