Zweig on Investing Vs. Speculating

Every asset, writes Jason Zweig of The Wall Street Journal, “is an investment in some people’s hands and a speculation in others’. So it isn’t what you buy, but rather why you buy it, that determines whether you are investing or speculating.” Zweig explains that this distinction, which is often credited to legendary investor Benjamin Graham, may be flawed in that an investment can in fact be speculative in nature or actually resemble a hybrid under certain circumstances. He offers an example involving Amazon, which has shot up from $1.50 per share in 1997 (adjusted for stock splits) to past […]

Benjamin Graham Inspired Picks

In his book The Intelligent Investor, the “Father of Value Investing” (and Warren Buffett’s mentor) drives home the importance of evaluating a business’s fundamentals before investing. In a recent article for Forbes, Validea CEO John Reese explains the metrics he used  to create his Graham-inspired stock screening model and offers the following high-scoring picks: Genesco (GCO) is a retailer and wholesaler of footwear, apparel and accessories that earns high marks for its solid revenue base, liquidity and low leverage. Long-term growth in earnings-per-share well exceeds the minimum requirement under this model. Myriad Genetics (MYGN) is engaged in the discovery, development […]

Graham and Buffett Back-to-School Picks

There’s a wide range of expectations for the retail sector with respect to this year’s back-to-school shopping results. In a recent article for Forbes, Validea CEO John Reese offers some data and insights on which retailers might make the grade. According to the National Retail Foundation, an improved sales season would be the first in four years. Total spending for K-12 and college is expected to reach $75.8 billion, up from $68 billion last year. Deborah Weinswig, head of Fung Global Retail and Technology, is quoted as saying, “We expect sales to reach near-record levels—up 2%-3%. There are more kids […]

Graham and Buffett Disciple Tops the Charts in 2015

Deena Friedman manages the Fidelity Select Retailing Portfolio, which has the highest 2015 return among mutual funds. With a return of over 18%, Barron’s notes that her “stock-picking easily outperformed comparable index-driven strategies,” given the 10.4% average return of ETFs investing in consumer discretionary shares. Friedman is a classic value investor, following Graham and Buffett, among others. “I found the way to generate alpha,” she says, “by thinking very long-term.” She also says that the American consumer “is increasingly value-conscious in an economy that is slow and steady, grinding upwards” – an outlook that fits well with her value investing […]

Fidelity PM Learns from Value Greats like Buffett, Graham and Klarman

Chuck Myers, who heads the Fidelity Small Cap Discovery Fund, shared some of the lessons he has learned as a value investor at the recent CFA Institute Equity and Valuation Conference. As reported in Enterprising Investor, these include: “Learn from the best, but think independently.” Myers cites some of the best known investors, and those with excellent records, as influences, but has developed his own “low expectations” approach to value investing by seeking out-of-favor stocks ripe for a turnaround. Myers cites great investors such as Warren Buffett, Benjamin Graham, and Seth Klarman as some of his top influencers in investing. […]