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

There’s no such thing as a free lunch, but spinoff companies are as close to free as you can get.  When a company is spun off, there’s a high level of forced selling. One of the best ways to think about spinoffs: “There’s a natural constituency of sellers and not a natural constituency of buyers,” according to “Margin of Safety” author and hedge fund manager Seth Klarman. Simply, many shareholders who own shares of the… Read More

There’s no such thing as a free lunch, but spinoff companies are as close to free as you can get.  When a company is spun off, there’s a high level of forced selling. One of the best ways to think about spinoffs: “There’s a natural constituency of sellers and not a natural constituency of buyers,” according to “Margin of Safety” author and hedge fund manager Seth Klarman. Simply, many shareholders who own shares of the parent company are not interested in owning the spinoff. This can be for a variety of reasons, such as different business fundamentals, weak management, or negative cash flow. In most cases, investors are selling the company for no good reason. While on the other side, the buyers are limited, as the market is inefficient in digesting data on new spinoff companies.  Spinoffs Versus The Market  Yet, over the long term, spinoff… Read More

We’ve managed to avoid the great Mayan prediction of the end of the world in 2012, along with countless doomsday prognostications before it. But while we shrug off the continued calls that some people still predict about the end of the world, it’s undeniable there are good reasons investors should have a “doomsday portfolio” to protect them from catastrophic losses.#-ad_banner-# I’m not talking about the end of times, though. In the event of runaway asteroids or the second coming, saving for your golden years will be the least of your… Read More

We’ve managed to avoid the great Mayan prediction of the end of the world in 2012, along with countless doomsday prognostications before it. But while we shrug off the continued calls that some people still predict about the end of the world, it’s undeniable there are good reasons investors should have a “doomsday portfolio” to protect them from catastrophic losses.#-ad_banner-# I’m not talking about the end of times, though. In the event of runaway asteroids or the second coming, saving for your golden years will be the least of your worries.  But I’m also not talking about simply a global malaise in economic growth or the gradual loss of purchasing power in the U.S. dollar, either.   I’m talking about a quick collapse of order — a collapse of faith in our institutions and a resulting widespread loss in financial assets.   And if you think this could never happen, then think again, that’s why I’m showing you how to build a well-rounded portfolio.    Hurricane Katrina destroyed more than $60 billion in economic value and led to massive looting and… Read More

It’s the most popular high-yield stock owned by Congress. And they might be on to something. Right now this stock yields 5.3%… and it’s one of the most stable dividend-payers in America. During the… Read More

My freshman year in college, I returned to my hometown to attend the wedding reception of a friend. During the festivities, one of the young men who had occasionally wandered into my social circle came over to ask me to dance. He mentioned… Read More

We’ve managed to avoid the great Mayan prediction of the end of the world in 2012, along with countless doomsday prognostications before it. But while we shrug off the continued calls that some people still predict about the end of the world, it’s undeniable there are good reasons investors should… Read More

It’s the most popular high-yield stock owned by Congress. And they might be on to something. Right now this stock yields 5.3%… and it’s one of the most stable dividend-payers in America. During the… Read More

What struck me most about my first trip to Europe was the popularity of mobile phones.  It seemed everyone had one and was talking or texting while walking down the street. I look back on this experience as a glimpse into the future.#-ad_banner-# Just a few short years later, the same phenomena occurred in the United States. Today, landlines are becoming a thing of the past while even the majority of preteens own or use mobile phones. Nowhere has this growth been more dramatic than in the smartphone sector. These devices have become a ubiquitous part of our culture. Many… Read More

What struck me most about my first trip to Europe was the popularity of mobile phones.  It seemed everyone had one and was talking or texting while walking down the street. I look back on this experience as a glimpse into the future.#-ad_banner-# Just a few short years later, the same phenomena occurred in the United States. Today, landlines are becoming a thing of the past while even the majority of preteens own or use mobile phones. Nowhere has this growth been more dramatic than in the smartphone sector. These devices have become a ubiquitous part of our culture. Many people wouldn’t even consider venturing outside without their smartphone. The rise and fall of the companies producing these addictive devices is just as fascinating as their rapid rise to become an indispensible part of most people’s lives. Once-popular companies such as Palm and Nokia (NYSE: NOK) were among day traders’ favorite stocks for quite some time. Those names have since fallen to competitors such as Apple (Nasdaq: AAPL) and Samsung (OTC: SSNLF).  We all know the benefits of investing in the top-tier smartphone makers. However, there is… Read More

As the market reaches near record highs, it’s becoming harder to find value.  Historically, the average price-to-earnings (P/E) ratio of the S&P 500 is about 15.  Today, the average is 19. Read More

The financial industry is adept at keeping its customers in the dark about what they are spending. There are plenty of regulations in place that are supposed to make such costs transparent, but most of the disclosures are in small print and peppered with legal terms. I’m not suggesting that all fees and charges are unfair. In fact, decades of consumer advocacy have reduced the number and types of tricks brokers, financial advisors, and money managers once used to fleece their… Read More

The financial industry is adept at keeping its customers in the dark about what they are spending. There are plenty of regulations in place that are supposed to make such costs transparent, but most of the disclosures are in small print and peppered with legal terms. I’m not suggesting that all fees and charges are unfair. In fact, decades of consumer advocacy have reduced the number and types of tricks brokers, financial advisors, and money managers once used to fleece their clients. But there are still things to watch out for… Some money managers and financial advisors provide a range of financial services, including asset allocation, stock and bond recommendations, reporting, and so on. Most of them will charge you a fee for financial advice. Some will also collect commissions on any transactions. One of the biggest problems with money managers and financial advisors is that they have a predisposition for mutual… Read More