Lynch & Buffett: A Dynamic Duo?

Legendary investors Peter Lynch and Warren Buffett have each posted exceptional returns on their own, so what would happen if they teamed up to pick stocks? In a “Number Cruncher” column for Canada’s Globe and Mail, John Heinzl uses Validea Canada’s guru-based screeners to try to answer that question. In January, Globe and Mail put […]

Berkowitz’s Checklist and Lessons

After struggling in 2011, Morningstar Fund Manager of the Decade Bruce Berkowitz is rebounding strong in 2012, with his Fairholme fund in the top 1% of funds in its category year-to-date, according to Morningstar.com. And at a recent Columbia Investment Management Association conference, Berkowitz laid out his checklist for analyzing a company and its stock, […]

Little-Known Manager, Huge Returns

A recent article in Investment News highlights a mutual fund manager you probably don’t know — but you should. The manager, James Wang of the Oceanstone Fund, has returned 41% over the past five years — annualized. That beats the S&P 500 by about 39% per year. “Indeed, a $10,000 investment at the fund’s inception […]

Valuation Expert Says Market Only “Slightly Expensive”

An expert on stock valuation who warned about the late-1990s Internet bubble says that stocks aren’t near bubble territory today.  Stocks are only “slightly expensive relative to their long-term average,” John Campbell, who is the chairman of Harvard’s Economics Department — and who was with Robert Shiller the co-author of a late-1996 paper that warned Federal Reserve […]

Lee and Rosenberg Square off on Stocks

Thomas Lee, chief U.S. equity strategist at JPMorgan Chase, and David Rosenberg, chief economist and strategist at Gluskin Sheff & Associates, went head-to-head recently on Bloomberg in discussing their differing opinions on where the stock market is headed. Lee is more bullish than Rosenberg, saying that history has shown that when the equity risk premium […]

Woodford Says Economy Doesn’t Support “Wave of Optimism”

Top U.K. fund manager Neil Woodford sees a “wave of optimism” among stock investors, and says it may be unjustified given the state of the global economy. “The current wave of optimism sweeping global stock markets assumes that the developed world will now emerge from the period of low economic growth it has faced since […]

Shiller Not Convinced Housing Has Bottomed

Yale Economist Robert Shiller says he’s not sure the housing market has yet hit the turning point that some analysts say it has hit. Shiller tells CNBC that prices have been falling for four months now, but that indicators are looking stronger for the future. “I give it a chance that this could be a turning […]

Mobius: Low Yields and Inflation Will Push Money Into Stocks

Templeton Asset Management’s Mark Mobius says that the combination of low-yielding fixed-income investments and looming inflation fears will have investors moving out of Treasurys and into stocks. “People are now beginning to realize that they cannot be sitting on bonds that are paying one, two or even three percent, when inflation is running higher than […]

Biggs Getting More Bullish

Hedge fund guru Barton Biggs has been increasing his exposure to stocks, saying that their relative attractiveness compared to bonds and fixed-income investments will drive investors toward them. “I’ve been gradually increasing and I’m up to 90 percent [long on stocks] now,” Biggs said on Bloomberg Surveillance with Tom Keene. “There is an awful lot […]

Cinderella Stocks from the Gurus

Unheralded programs like Ohio University and Lehigh have played Cinderella in this year’s NCAA basketball tournament, knocking out highly seeded schools with long histories of basketball prominence. And in his latest column for Nasdaq.com, Validea CEO John Reese says investors can similarly find Cinderellas hiding in the stock market, ready to post gains that would […]

Fisher: Stars Aligning for China in 2012

Forbes’ Kenneth Fisher says he’s found a good timing mechanism for investing in Chinese stocks, and says it is showing that the “stars are in alignment” for Chinese equities in 2012.  The timing approach is based on the idea that politics drives the economy and market in China, Fisher says. “China’s powerful Communist Party leadership […]

OSAM: Shareholder Yield Surpasses Dividend Yield

While paltry fixed-income yields have had investors on the prowl for high-dividend stocks, James O’Shaughnessy’s firm says they should be looking in another place for yield. “Though dividend yield works very well internationally, investors in U.S. stocks should instead focus on shareholder yield, a factor we have long advocated that has provided considerably stronger returns […]

Top U.K. Manager Bullish on U.S.

Top U.K. fund manager Robin Geffen has increased his Neptune Global Equity fund’s U.S. allocation to its highest level ever, saying that the American economy stands out among other developed economies. “It has the highest estimated GDP growth, a supportive Federal Reserve and a willing and active government which is ready and able to intervene […]

An Industry That Can Beat Back Inflation

In his latest column for RealMoney.com, Validea CEO John Reese says inflation can be a big hindrance to good investing returns, and highlights one industry — pharmaceuticals — that has the power to beat back inflation. “If inflation were Wile E. Coyote then its Road Runner might well be the pharmaceutical industry,” Reese writes. “An […]

Top Forecaster Sees More Gains For Market

Former Value Line Research Director Sam Eisenstadt, who has a solid track record of market forecasting, thinks stocks will gain more than 8% by the end of August, with the S&P 500 nearly eclipsing all-time highs, according to MarketWatch’s Mark Hulbert. “Prior to his retirement in late 2009, Eisenstadt had spent 63 years at [Value Line],” Hulbert […]

Dreman: Bond Bubble Will Hurt Many

Contrarian strategist David Dreman says a “major bubble that will hurt a lot of people” has formed in the long Treasury bond market. “Ten-year Treasuries are yielding about 2%, while 30-year Treasuries are at 3%,” Dreman tells Morningstar.com. “Adjusting for inflation and taxes, this has almost never happened before. In the rush to Treasuries after […]

Sonders: No QE3, No Problem

The Federal Reserve didn’t give any indications after its last meeting that it will be undertaking a third round of quantitative easing, and Charles Schwab Chief Investment Strategist Liz Ann Sonders says that’s good news. “Personally, I disagree with the many who feel the only prop under this very strong market has been quantitative easing,” […]

Mobius: Russia “Too Cheap To Ignore”

While Russian stocks struggled mightily last year, Templeton Asset Management’s Mark Mobius says they are the most attractive of the “BRIC” nation equities in 2012. Mobius tells Investment Week that the Russian market “is still extremely cheap … trading at an average P/E ratio of below 10, which is too cheap to ignore,” and says […]

Gabelli: Opportunities in Spinoffs

Value investing guru Mario Gabelli says companies that spin off parts of their businesses are a prime area to look for good investments. Gabelli tells CNBC that he likes investing in companies that have a history of splitting off successful businesses, or which could split off businesses. Then he invests in both firms. “How do […]