Tag Archive
Even Leading Companies Can Disappear Into the Sunset
Buy-and-hold investing carries a wonderful vision: Find a successful company Buy the company’s stock Sit back, relax, and watch the money grow The problem is that most successful companies peter out, either meandering around some plateau, producing no return — or, worse, falling back with mounting losses. Many events and conditions can cause firms... »
Value Investing Using the ‘Special Situations’ Approach
Value stock investing has changed over the past few months. Late last August, value screens could turn up quality companies at attractive prices. Now, those bargains are gone, and the value approach is back to searching for special situations. It’s been a while since the market has been in this position, so let’s review…... »
Avoid Mixing Political Opinions and Investing Decisions
I am seeing more investors incorrectly use political opinions to substantiate their investing actions. Political beliefs are often emotionally charged, thereby skewing reasoning. The result: Poor investment decision-making. »
Be Contrarian; Believe a ‘Real’ Bull Market Is Starting
When I wrote “Time To Be A Contrarian” last June, the Dow Jones Industrial Average (DJIA) had fallen to the 10,000 level. Mega/global fears swirled about. The contrarian position was “easy” – buy US stocks. “All” it took was focusing on company fundamentals, ignoring the scary news and going against what our stomachs were... »
Automobile Deaths and the How to be a Losing Investor
After Seeking Alpha selected my article, “New EPA Mileage Standards Could Stimulate Auto Sales,” an investor made the following comment: “Every time CAFE standards rise, the total number of deaths from car accidents rises (lighter cars means less survivability).” The statement is incorrect, as I show below. More importantly, this... »
How to Earn IPO Profits from the Inside
No, you don’t have to buy private shares of Facebook. There is a more diversified, less risky (and possibly more profitable) approach. Not seen since the 1960s have private investors had access to IPO gains from the issuer’s side. Here’s the story: »
A Key New Year’s Resolution: Invest for Growth
Last December I provided four New Year’s investment resolutions that were applicable in all markets (listed below). It seemed many investors were still shell-shocked and needed to be reminded that no economic/market environment lasts forever. Therefore, it was important to continue practicing sound investment principles. For 2011, however, there is one resolution that many... »
/Quick Point/ – James C. Cooper’s ‘Business Outlook’ Lives!
Last January I wrote “Obituary: Business Week’s ‘Business Outlook’ Column” (January 27, 2010). Bloomberg’s takeover of Business Week resulted in the demise of the long-standing, valuable “Business Outlook” column and the loss of economist James C. Cooper, the Business Outlook’s editor since 1988. Now there is good news… »
Prepare for Turn: Macro/Passive Out and Selective/Active In
Macro investing is losing its grip on investment returns as “global” twists and turns (and frights) diminish in importance. In its place is a growing realization that security selection is back – that there is good money to be made by correctly separating the winners from the pack. Therefore, expect macro investing to give... »
Investors Give up on Value Stocks – Should We?
The Wall Street Journal just provided a big tip for investors: Buy value stocks. This tip was wrapped in a “contrarian” package, meaning they described well why investors are ignoring value. And whenever investors choose to pooh-pooh something, that is where we should look for potentially profitable investments. »
The US Stock Market’s New Thrills
The US stock market continues to get into the record books. This time it’s the quick drop from April 26 to June 7, unmatched in the past 80 years except in 1950 when the Korean War broke out. So, what’s going on? Is this the beginning of a new bear market? Or is there... »
The Lonely Art of Contrarian Investing
Imagine that when the internet bubble peaked on March 15, 2000, you had already begun moving out of high-flying, technology stocks into stagnant, “old economy” ones. Or, when the market bottomed on March 9, 2009, you were already moving into actively managed stock funds. A pipe dream? No – it’s the result of successful... »
A Quadruple Dip in Confidence
The month of May brought thoughts of, “Here we go again!” And no wonder. Starting two years ago, stock investors have been buffeted by large uncertainties, bad to terrible news and losses that still haven’t been recouped. However, I believe today’s investor angst is overwrought, caused by what went on before as much as... »
Pitfalls in Today’s US Stock Market – Part 3
Given Wall Street’s disruptive game playing described in Parts 1 and 2, what’s an investor to do? Today, I address “III. How we can invest and protect ourselves.” »
Five Keys for Deciding What to Do in This Stock Market – Buy, Sell or Wait?
In Thursday morning’s write-up, I said I would next discuss stock valuations. However, with Thursday’s sizable market drop, I decided to spend the time analyzing portfolios and holdings. As a result, I did a bit of client buying on Friday. So, instead of valuations, I thought this article should be about dealing with periods... »