Buffett Can Bend His Own Rules

When Berkshire Hathaway buys pricey stocks of companies that pay hefty dividends and repurchase shares, it may appear to go against his mantra of “never lose money,” since a short-term price dip is more likely. This according to Validea CEO John Reese in last week’s CNBC.com. In the article, Reese discusses Berkshire’s seemingly unlikely stakes […]

The S&P 500 May Follow Its Own Path

Based on technical analysis of stock market movements, an 85-year trend for the S&P 500, “shows the equity benchmark could rise past 4,000 in the next eight years—an 81 percent increase from its Monday [February 27] close of 2,362.18.” This according to an article in this week’s Bloomberg. By the same token, however, the article […]

Five Picks for the Common-Sense Investor

How should an investor address the ever-present question as to whether an exciting, media-saturated stock is actually a sound opportunity? In anticipation of Snapchat Inc.’s IPO, Validea CEO John Reese addresses the quandary in his article for Nasdaq this week. Citing new research by Charles Lee and Ken Li of Stanford University, Reese explains the […]

Stock-Picking Strategies from Barron’s Veteran

Advocating a flexible approach to stock-picking, a recent article by Barron’s veteran Andrew Bary offers some guidance that incorporate the ever-successful strategies of Warren Buffett while emphasizing the importance of creating a “well-diversified portfolio before trying to pick individual stocks.” He writes that Barron’s tends to favor both value stocks (those with low price-to-earnings or […]

Francis Chou is a Patient Investor

Regarded as one of the savviest value investors in the world, says a recent article in Canadian Business, Francis Chou thinks the market is overpriced right now, but will come down–and he’s willing to wait. The article notes Chou’s early career as a Bell telephone technician (1979) during which time he became fascinated by the […]

Warren Buffett’s Strategy Based on Market Anomalies

Part of Warren Buffett’s fortune was made by “exploiting two market mistakes: the tendency for quality companies and low-risk stocks to outperform,” says last week’s Wall Street Journal. Referring to the recently foiled Kraft-Unilever deal, the article says that both are “high-quality companies with predictable earnings and strong cash flow, whose shares have lower-than-average volatility […]

Highlights from Berkshire Hathaway’s 2016 Letter to Shareholders

On Saturday, February 25th, Berkshire Hathaway released its much-anticipated 2016 letter to shareholders in which Warren Buffett presents his company’s results for the year and shares his inimitable insights and wisdom. Here are some highlights (Part I was posted yesterday): “Starting from scratch, America has amassed wealth totaling $90 trillion.” Meg McConnell of the New […]

Higher Earnings are Driving Stock Gains

The biggest U.S. companies have started a new growth streak and more good  news is expected in the coming quarters, says an article in last week’s Wall Street Journal. Citing FactSet data the article states “fourth-quarter earnings are expected to log an increase of 4.6% from the same period a year ago, the article states […]

Highlights from Berkshire Hathaway’s 2016 Letter to Shareholders

On Saturday, February 25th, Berkshire Hathaway released its much-anticipated 2016 letter to shareholders in which Warren Buffett presents his company’s results for the year and shares his inimitable insights and wisdom. Here are some highlights: Berkshire has undergone a “gradual shift from a company obtaining most of its gains from investment activities to one that […]

Active Funds Perked Up in January

January was a good month for actively managed funds, says a recent Bloomberg article that states, “the majority of actively managed value funds in the U.S. and Europe outperformed their benchmarks in January.” This according to strategists at Lyxor Asset Management. Most European growth funds also beat the market, the strategists recently wrote. However, Lyxor […]

Rob Arnott Says Clock is Ticking on Smart Beta ETFs

A smart-beta pioneer, Rob Arnott of Research Affiliates warns that these investment vehicles are in a bubble, says an article in last week’s Bloomberg. Smart-beta ETFs organize securities based on quantitative factors like volatility or “cheapness”, and the article explains that Arnott’s position is nothing new (he publicly battled with Cliff Asness on the topic […]

Tiger Cubs are Licking Their Wounds

A generation of hedge-fund firms started by protégés Tiger Global Management’s Julian Robertson, known as “Tiger Cubs”, are “among of wave of stock hedge funds that fared poorly in 2016,” says a Wall Street Journal article from earlier this month. Last year, the article states, Tiger suffered losses of about $900 million (a 15.3% loss) […]

Sentiment Measures Are Not Reliable Investment Cues

The topic of market sentiment and how it manifests in stock price shifts and investor behavior is addressed in this week’s Enterprising Investor. In today’s post-election market, the article points out that sentiment measures have increased. “A recent Investors Intelligence Sentiment Report registered 65% bulls—not an extreme reading, but above the roughly 45% average.” The […]