Most great businesses have one thing in common: cash. Far from simply not hurting for it, they’ve typically got plenty on the balance sheet. They generally have healthy free cash flow, too. #-ad_banner-#​For investors, a great way to gain exposure to these things is through the insurance industry. Insurance can be a fantastic cash generator because premiums tend to go up regularly, leading to a more consistent revenue stream and steady growth of profits. Still, insurance companies face risk, mainly from having to pay out so much for claims that their cash position and… Read More

Most great businesses have one thing in common: cash. Far from simply not hurting for it, they’ve typically got plenty on the balance sheet. They generally have healthy free cash flow, too. #-ad_banner-#​For investors, a great way to gain exposure to these things is through the insurance industry. Insurance can be a fantastic cash generator because premiums tend to go up regularly, leading to a more consistent revenue stream and steady growth of profits. Still, insurance companies face risk, mainly from having to pay out so much for claims that their cash position and bottom line suffers. But that’s not as big a concern for the industry’s middlemen — insurance brokerages — because they’re not underwriters or payers. Rather, their main job is connecting customers with insurers and for this they collect commissions and fees. The insurance brokerage I prefer is one of the top two in the United States, as well as a leading provider of human resources, management and economics consulting services. It has an extremely tough competitor in main rival Aon Hewitt Plc (NYSE: AON), with both firms offering high-level expertise, generating… Read More

As you many of my long-time readers know, my boots-on-the-ground approach to finding the world’s best investments has taken me all over the globe. Recently, I found myself in Bangkok — a Southeast Asian hotspot brimming with opportunity to launch new products and investments. #-ad_banner-#​Surprisingly, though, it was in a small tailor shop down one of Bangkok’s narrow side alleys that gave me the most inspiration.A cab driver — who I’m sure the tailor had paid to bring potential clients to his shop — dropped me off to have a look around. As luck would have… Read More

As you many of my long-time readers know, my boots-on-the-ground approach to finding the world’s best investments has taken me all over the globe. Recently, I found myself in Bangkok — a Southeast Asian hotspot brimming with opportunity to launch new products and investments. #-ad_banner-#​Surprisingly, though, it was in a small tailor shop down one of Bangkok’s narrow side alleys that gave me the most inspiration.A cab driver — who I’m sure the tailor had paid to bring potential clients to his shop — dropped me off to have a look around. As luck would have it, I needed some new suits. And after finding the merchandise in the shop to be of good quality, I got down to the heart of the matter with the shop owner — the price. He opened with 30,000 Thai baht for two suits — about $1,000. Not a bad price for a tailor-made item… but I’d seen better. We eventually haggled down to 26,500 baht, but I still wasn’t convinced. And with a week to look around at other shops in the area, I started to head for the exit. Then… Read More

All-time investing great Warren Buffett is well-known for taking large positions in stocks he likes, and his top holdings naturally include many of the market’s most familiar names. Yet as a value seeker and contrarian, he also bets boldly on lesser-known firms — like a leading but still under-the-radar building materials supplier based in Chicago. Through his well-known conglomerate Berkshire Hathaway, Inc. (NYSE: BRK.A), Buffett holds about 39 million shares of the company worth $1.1 billion based on a recent stock price of $28.10. #-ad_banner-#This gives him a 27% stake, making him by far… Read More

All-time investing great Warren Buffett is well-known for taking large positions in stocks he likes, and his top holdings naturally include many of the market’s most familiar names. Yet as a value seeker and contrarian, he also bets boldly on lesser-known firms — like a leading but still under-the-radar building materials supplier based in Chicago. Through his well-known conglomerate Berkshire Hathaway, Inc. (NYSE: BRK.A), Buffett holds about 39 million shares of the company worth $1.1 billion based on a recent stock price of $28.10. #-ad_banner-#This gives him a 27% stake, making him by far the company’s single-largest shareholder. The next largest is a German building materials producer with a nearly 14% stake. I doubt many individual investors know of the company, which currently generates $3.6 billion in annual revenue, mainly by making wallboard and joint compound for the residential and commercial construction and remodeling markets. But the simple fact that Buffett owns it, and in large quantity, makes USG Corp. (NYSE: USG) well worth consideration. Clearly, Buffett has major confidence in the housing recovery or he wouldn’t risk so much on USG, which is about as pure a play… Read More

A little over a month ago in StreetAuthority Daily, I talked about how the U.S. has been stuck in a spendthrift, “Frugal Nation” mentality. As I said then: “Right now, the economic outlook is muddled at best, as it has been for much of the past five years since the financial crisis. Depressed wages and a large amount of people collecting unemployment means there just isn’t enough money around for most consumers to spend lavishly.” I maintain that this consumer “money hoarding” behavior isn’t going away anytime soon. And… Read More

A little over a month ago in StreetAuthority Daily, I talked about how the U.S. has been stuck in a spendthrift, “Frugal Nation” mentality. As I said then: “Right now, the economic outlook is muddled at best, as it has been for much of the past five years since the financial crisis. Depressed wages and a large amount of people collecting unemployment means there just isn’t enough money around for most consumers to spend lavishly.” I maintain that this consumer “money hoarding” behavior isn’t going away anytime soon. And recent news from the Federal Reserve confirms this — noting that banks have put away close to $2.8 trillion in reserves and households are sitting on $2.15 trillion in savings — a 50% increase over the past five years. The Fed report goes on to explain that because people are sitting on cash, rather than spending it, the “velocity of money” in the economy has slowed, which in turn has led to relatively low inflation and a slow-growth economy. As two leading economists from the St. Louis Fed explained:… Read More

This is a stock you wouldn’t have wanted to own when the tech bubble burst in early 2000. In that era, it plummeted more than 95% from a February 2000 peak near $73 to a July 2002 all-time low near $3.40. For many years, the shares struggled to right themselves technically, repeatedly hitting resistance just above $10 and backing off. In fact, it wasn’t until late 2009 that this resistance was decisively penetrated. Now, however, shares of the specialized chipmaker Skyworks (NASDAQ: SWKS) have recently broken a major multi-year downtrend line and look very attractive technically. Backed by robust revenue… Read More

This is a stock you wouldn’t have wanted to own when the tech bubble burst in early 2000. In that era, it plummeted more than 95% from a February 2000 peak near $73 to a July 2002 all-time low near $3.40. For many years, the shares struggled to right themselves technically, repeatedly hitting resistance just above $10 and backing off. In fact, it wasn’t until late 2009 that this resistance was decisively penetrated. Now, however, shares of the specialized chipmaker Skyworks (NASDAQ: SWKS) have recently broken a major multi-year downtrend line and look very attractive technically. Backed by robust revenue and earnings growth estimates, based on strong product demand, Skyworks looks set to move ahead, making now a potentially profitable time to trade the stock. #-ad_banner-#News that Skyworks will be supplying RF (radio frequency) chips for Apple’s (NASDAQ: AAPL) upcoming iPhone 6 is a strong growth catalyst. Analysts expect at least 100 million iPhones will be sold during the third and fourth quarters of 2014, meaning Skyworks will likely be selling millions of its of RF chips — just to Apple. As a result, Skyworks management anticipates upcoming fourth-quarter revenue will increase 42% year-over-year. In addition to supplying chips to… Read More

It’s that time of year again; Football is back. The great American past time is treated much like a national holiday and celebrated in its own unique way with raucous cheering, spicy wings, and copious amounts of beer. One company comes to mind that offers a one-stop-shop for any fans needs — Buffalo Wild Wings (NASDAQ: BWLD). An option trade in this stock could have your portfolio celebrating right alongside you this season. #-ad_banner-#Buffalo Wild Wings is a casual dining company with a focus on sports entertainment. In addition to its namesake menu item, wings, it offers a selection of… Read More

It’s that time of year again; Football is back. The great American past time is treated much like a national holiday and celebrated in its own unique way with raucous cheering, spicy wings, and copious amounts of beer. One company comes to mind that offers a one-stop-shop for any fans needs — Buffalo Wild Wings (NASDAQ: BWLD). An option trade in this stock could have your portfolio celebrating right alongside you this season. #-ad_banner-#Buffalo Wild Wings is a casual dining company with a focus on sports entertainment. In addition to its namesake menu item, wings, it offers a selection of burgers, sandwiches, and salads as well. The company recently made a majority investment in the Dallas-based restaurant Rusty Taco. Buffalo Wild Wings hopes to foster the small chain’s growth and expand across the country.  Unlike most casual dining restaurants, Buffalo Wild Wings has a selection of alcoholic drinks that includes craft beers. It’s taking advantage of a growing trend in the United States that has shifted toward microbreweries and specialty beers over mainstream brands. Today, there are over 3,000 breweries in the country compared to just 1,020 in 2009 — almost triple the number in just five years. Fundamentally, the… Read More

As many of my long-time readers know, I generally like to have my portfolio holdings equally split among three types of dividend stocks: High-Yield Opportunities, Fast Dividend Growers, and Steady Income Generators. (I talked in more detail about these three types in a recent issue of Dividend Opportunities.) #-ad_banner-#​The critical discovery I’ve made over the past five years is that by using the right combination of dividend stocks, you can you create a retirement portfolio that maximizes income, maximizes growth and minimizes risk. This is exactly what my Daily Paycheck Retirement Strategy is all about. It’s… Read More

As many of my long-time readers know, I generally like to have my portfolio holdings equally split among three types of dividend stocks: High-Yield Opportunities, Fast Dividend Growers, and Steady Income Generators. (I talked in more detail about these three types in a recent issue of Dividend Opportunities.) #-ad_banner-#​The critical discovery I’ve made over the past five years is that by using the right combination of dividend stocks, you can you create a retirement portfolio that maximizes income, maximizes growth and minimizes risk. This is exactly what my Daily Paycheck Retirement Strategy is all about. It’s how I’ve been able to collect nearly $1,400 per month in dividends over the past year, and how my real-money portfolio has grown from $200,000 to over $310,000 in less than five years. As I said, the strategy uses three types of dividend stocks. But to maximize income, my Daily Paycheck Strategy dedicates nearly a third of its portfolio to high-yield dividend stocks. I doubt I need to tell you the primary benefit of this elite category. High-yielding securities are defined by their generous income payouts. This makes them particularly attractive for anyone looking for a… Read More

If you want an explanation on how the market has been able to keep running higher even against a tepid economic recovery and spiraling geopolitical crises, look no further than activist investors. #-ad_banner-#​These billionaire hedge fund managers buy stakes in companies that are mismanaged or underperforming and push for shareholder value. Before just a few years ago, the group was not relatively well known and limited funding meant limited power to provoke change. That is all changing and a wave of funding for activists like Carl Icahn and Daniel Loeb… Read More

If you want an explanation on how the market has been able to keep running higher even against a tepid economic recovery and spiraling geopolitical crises, look no further than activist investors. #-ad_banner-#​These billionaire hedge fund managers buy stakes in companies that are mismanaged or underperforming and push for shareholder value. Before just a few years ago, the group was not relatively well known and limited funding meant limited power to provoke change. That is all changing and a wave of funding for activists like Carl Icahn and Daniel Loeb is giving them the power to unlock billions in shareholder value. Case in point: After shares of Yahoo (Nasdaq: YHOO) went nowhere for the three years to 2012, Loeb’s Third Point LLC acquired shares and pushed for three seats on the board. That May, Loeb uncovered that CEO Scott Thompson had misrepresented his resume with a computer science degree. Marrisa Mayer was championed as the new chief executive and the shares boomed 167% in the 15 months to the beginning of this year. Read More

As we head into the final quarter of the year, a clear narrative has emerged. We’re on track for the most robust job growth in a decade, while consumer spending slowed to a crawl in 2014. A key explanation for the disconnect: The quality of jobs being created aren’t very good, and they don’t pay enough money to support a thriving consumer economy. #-ad_banner-#But that narrative is too simple. Buried in the employment reports, you’ll find data that suggest we’re also creating well-paying jobs in the energy sector, professional services, technology and elsewhere. That translates to a strong likelihood that… Read More

As we head into the final quarter of the year, a clear narrative has emerged. We’re on track for the most robust job growth in a decade, while consumer spending slowed to a crawl in 2014. A key explanation for the disconnect: The quality of jobs being created aren’t very good, and they don’t pay enough money to support a thriving consumer economy. #-ad_banner-#But that narrative is too simple. Buried in the employment reports, you’ll find data that suggest we’re also creating well-paying jobs in the energy sector, professional services, technology and elsewhere. That translates to a strong likelihood that the national unemployment rate will to decrease to less than 6% faster — by one-to-two years — than most economists predicted in 2012. Here’s the good news that few are talking about: consumer spending, which only recently was seen as lifeless, is actually springing to life. According to the Commerce Department, retail spending rose 0.6% sequentially in August, and 5.0% from a year earlier. Auto sales and spending on personal care and healthcare led the way. When you’re talking about a part of the economy that accounts for more than $400 billion in monthly activity, this is a… Read More

The September 19 initial public offering of Chinese internet giant Alibaba Group Holding Limited (NYSE: BABA) was every bit the extravaganza analysts predicted. And there’s a good chance that, in the long run, Alibaba shareholders will be well rewarded. Like many Chinese stocks, though, Alibaba is… Read More