Examining historical trends in the 10-year price/earnings ratio, bond yield spreads, and equity risk level premiums, Professors Dale L. Domian and WIlliam Reichenstein make the case that now is a good time to buy stocks ($$) in a research piece published by the American Association of Individual Investors.
I always find it interesting to look at the guru portfolios I run on Validea, and ask the question “what is working” now? Over the last month, in a period where the S&P is up 0.4%, 11 out of Validea’s 13 portfolios have outperformed. The best performer is my Ben Graham strategy, up 9.4%. Incidentally, […]
Don’t expect the economic news to get better anytime soon — but there are opportunities to make money in this market. That’s what three top strategists — Ed Hyman of ISI Group, Bob Doll of BlackRock, and Bill Gross of Pimco — told Consuelo Mack in an exclusive interview on WealthTrack this week.
This is the first of three Barron’s Roundtable articles featuring some of the best and brightest in the investment industry. In general, these experts see more uncertainty in 2009, but think there are ample opportunities for good stock-picking strategies. Writes Barron’s Lauren R. Rublen, “The [roundtable] was rife with history lessons and warnings — and […]
In the week’s Validea Hot List newsletter, Validea CEO John Reese says that, despite the continuing troubles with the U.S. economy, he sees several clear reasons long-term investors should be high on stocks heading into 2009. “Good investors must have the ability to look past the near-term and see the forest for the trees,” Reese […]
Investing legend John Bogle, founder of the Vanguard Group of Mutual Funds, writes in a guest column for The Wall Street Journal that investors continually ignore lessons of the past, which cost many dearly last year. Bogle offers six such lessons that we should not forget moving forward:
In a rare interview, retired value guru John Neff — who put together one of the best track records in history over his three-plus decades managing the Windsor Fund — tells Fortune that now is the time to buy stocks.
Advisor Perspectives turns out another good interview, this time with Fairholme Fund manager Bruce Berkowitz. Berkowitz’s leadership has helped turn the Fairholme Fund into one of the most successful funds around. Berkowitz takes time to discuss his investment process. Specifically, he says “we look at a company’s free cash flow relative to its price. Ideally, […]
In his “Ten Suprises for 2009” list, Pequot Capital Chief Investment Strategist Byron Wien says the coming year is likely to feature a number of major events — including a rebound in equities, a rush into gold, significant dollar declines, and the potential bankruptcy of New York State.
MSN.com’s Michael Brush writes today that the current tough times call for “a dose of optimism, wisdom, and insight”, and he thus offers 10 lessons on “the basics”, as taught by Warren Buffett. The lessons mostly focus not on financial expertise, but instead on psychology. “Buffett’s investment success comes from some easy-to-grasp human qualities as […]
The final tally from Warren Buffett’s 2008 buying spree: $20 billion-plus. “While most investors panicked or were forced to sell, [Buffett] put more than $20 billion to work last year, positioning his insurance-focused conglomerate to profit if the economy and markets recover in coming years,” writes Alistair Barr of MarketWatch. Buffett’s firm had about $44 […]
Money has been flowing out of mutual funds at an incredible rate in the past year, but three well-known fund managers see opportunity in the flight from stocks, BusinessWeek’s Tara Kalwarski writes. Kalwarski interviewed John Rogers of Ariel Fund, David Herro of Oakmark International Fund, and Tom Marsico of Marsico Focus Fund, and found that […]
Diehard value investors will appreciate the transcripts of lectures featured in “The Rediscovered Benjamin Graham: Selected Writings of the Wall Street Legend,” by Janet Lowe. Posted on John Wiley & Sons’ web site, the “lectures are from the series entitled Current Problems in Security Analysis that Mr. Graham presented at the New York Institute of […]
Ken Fisher, CEO of Fisher Investments and Forbes columnist, says “it’s better to be a little early than a little late getting back into stocks.” Fisher explains that the stock market is a discounting mechanism, representing “a guess about where the economy (and corporate profits) will be 6 to 24 months in the future.” Fisher […]
CNBC.com outlines eight timeless predictions by Warren Buffett on its Warren Buffett Watch blog. While CNBC labels these as predictions, we tend to think of these more like lessons that Buffett offers up to long-term stock market investors. After a year like 2008, Buffett’s lessons provide some perspective on dealing with recessions, bear markets and […]