Energy is vital for every nation in the world — yet no other sector gets as much bad press.  According to 2011 statistics from BP (NYSE: BP), oil is the predominant source of energy production around the world, followed by coal, natural gas, renewables and nuclear. The energy sector is… Read More

The emerging markets that we’ve come to know so well, the BRIC countries, are finally coming to an end — at least, as emerging markets.  China and Brazil are moving away from having industrial economies and are becoming ever more consumption-driven. India continues to suffer from a depreciating rupee and a poor economy, and Russia remains an unpredictable political quagmire.#-ad_banner-# A paradigm shift in global industrial manufacturing is beginning to take place, and areas like Indonesia, West Africa and Latin America could emerge as the next… Read More

The emerging markets that we’ve come to know so well, the BRIC countries, are finally coming to an end — at least, as emerging markets.  China and Brazil are moving away from having industrial economies and are becoming ever more consumption-driven. India continues to suffer from a depreciating rupee and a poor economy, and Russia remains an unpredictable political quagmire.#-ad_banner-# A paradigm shift in global industrial manufacturing is beginning to take place, and areas like Indonesia, West Africa and Latin America could emerge as the next bull markets for investors. As the U.S. economy rebounds, it will undoubtedly remain consumer-driven, which is good news for one country in particular.  The U.S. accounts for 78% of this country’s exports, with the five largest U.S. import categories last year being electrical machinery ($56.8 billion), automobiles and parts ($53.5 billion), machinery ($42.3 billion), mineral fuel and crude oil ($39.9 billion), and optical and medical instruments ($10.4 billion).  Unlike the slowing growth in China, this country’s GDP… Read More

We all have a fantasy we’d like to see come true. For some, it’s being in your favorite football team’s locker room during the coach’s inspiring halftime speech. For others, it might be a backstage pass to a legendary musician’s concert. Nothing so pedestrian for us. Instead, we ask: What if you could be inside Berkshire’s boardroom and see how its directors vet potential companies for investment? Luckily, that’s not just a pipe dream — there’s a way we can find out. Read More

We all have a fantasy we’d like to see come true. For some, it’s being in your favorite football team’s locker room during the coach’s inspiring halftime speech. For others, it might be a backstage pass to a legendary musician’s concert. Nothing so pedestrian for us. Instead, we ask: What if you could be inside Berkshire’s boardroom and see how its directors vet potential companies for investment? Luckily, that’s not just a pipe dream — there’s a way we can find out. Warren Buffett‘s Berkshire Hathaway (NYSE: BRK-B) recently disclosed its holdings through a 13F filing with the Security and Exchange Commission (SEC). Overall, Berkshire’s equity positions increased roughly 4.7% from the previous quarter, to $89 billion, which tells us Buffett is a buyer in a market that others have been disparaging. However, Berkshire’s success speaks for itself. Shares are up 73% since 2009 — more than… Read More

Hidden inflation is an insidious devourer of profit. Forget what the Consumer Price Index is telling us — higher costs don’t always get passed on to the consumer. Sometimes quality is reduced instead. Whether it’s the bag of potato chips that’s half-filled with air, the controversy of “pink slime,” or the shrinking amounts of cake mix in packages that used to hold more — whether we admit it or not, the inflation we’ve been worried about is already here. Read More

Hidden inflation is an insidious devourer of profit. Forget what the Consumer Price Index is telling us — higher costs don’t always get passed on to the consumer. Sometimes quality is reduced instead. Whether it’s the bag of potato chips that’s half-filled with air, the controversy of “pink slime,” or the shrinking amounts of cake mix in packages that used to hold more — whether we admit it or not, the inflation we’ve been worried about is already here. It’s the kind of environment where we see “Forever Stocks” shine. These are companies that have businesses built to last through bear markets, rising interest rates and, yes, inflation. This “Forever Stock” has an operating margin of 44%, which gives it plenty of wiggle room to withstand economic hardships. Expected earnings growth is 11.8%, and its business model has started to turn the heads of some of the biggest… Read More

The white noise of the Federal Reserve has drowned out the roar of the rail industry. While others argue about the macroeconomic picture, railroads have been chugging along at a steady pace. The Dow Jones Transportation Index has soared 18% this… Read More

There’s a sector in China that’s booming right now, and U.S. companies are just now starting to take advantage. Consider a few statistics. In 2000, a mere 4% of urban Chinese households were considered middle class. By 2012, that figure had grown to 66%. If current trends continue, by 2022 the middle class population will be 75% of urban households. That’s nearly 630 million consumers — nearly twice the entire population of the United States.#-ad_banner-# The average annual income of the urban Chinese middle class was $760 per… Read More

There’s a sector in China that’s booming right now, and U.S. companies are just now starting to take advantage. Consider a few statistics. In 2000, a mere 4% of urban Chinese households were considered middle class. By 2012, that figure had grown to 66%. If current trends continue, by 2022 the middle class population will be 75% of urban households. That’s nearly 630 million consumers — nearly twice the entire population of the United States.#-ad_banner-# The average annual income of the urban Chinese middle class was $760 per person in 2000. In cities like Bejing or Shanghai, disposable income now averages nearly $12,000 per person. In addition, these figures are probably underestimated, as tax avoidance runs rampant in China. In another emerging trend, China has begun to implement a financial assistance program for some of its residents. Due to the lack of safety-net welfare programs like Social Security, the Chinese savings rate is around 50%. Compare this to the savings rate for American households, which was 2.6% as of this… Read More