Investors tend to place a strong emphasis on growth. If a company is boosting sales at a fast clip, then its stock may be lavished with a rich multiple. Yet the top-line focus causes many to overlook a much more important metric: cash-flow growth. It’s easy to miss, especially when… Read More

In a Rolling Stone article from April 2010, in a now famous tirade against Wall Street investment banks, journalist Matt Taibbi described Goldman Sachs (NYSE: GS) as “a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money.” This is… Read More

The Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B) shareholder meeting takes place each year during the first weekend in May in Omaha, Neb. The 2010 meeting, held this past weekend, was attended by an estimated 40,000 loyal shareholders, many of which have held shares of Berkshire for decades and have become wealthy due to Warren Buffett’s ability to grow money at one of the most rapid rates in history. Since Berkshire’s start in 1965 and running through 2010, Berkshire has experienced a 20.2% annual growth rate in… Read More

The Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B) shareholder meeting takes place each year during the first weekend in May in Omaha, Neb. The 2010 meeting, held this past weekend, was attended by an estimated 40,000 loyal shareholders, many of which have held shares of Berkshire for decades and have become wealthy due to Warren Buffett’s ability to grow money at one of the most rapid rates in history. Since Berkshire’s start in 1965 and running through 2010, Berkshire has experienced a 20.2% annual growth rate in book value. This is more than double the 9.4% annual growth rate in the stock market, as measured by the return of the S&P 500 Index. Over this period, this means that Berkshire has returned 490,409% — while the market is up 6,262%. Both rates of growth have been impressive, but Berkshire’s qualifies as spectacular. #-ad_banner-#Buffett has relayed numerous times that future growth rates at Berkshire will fall below its historical growth trends, but there is still potential for investors to earn above-average returns by investing in the stock. Just… Read More

I remember how nutty investors were for shares of the big pharmaceutical companies 15 years ago. Pfizer (NYSE: PFE) had just put the spark back into middle-aged marriages, thanks to its failed blood pressure med that had a surprisingly pleasant side affect. Other companies followed suit with similar… Read More

Some things still aren’t discussed in polite society. Obesity and erectile dysfunction are among them. But if I abided by this convention, then you’d miss out on what could be the next-big-thing in the drug stock space. Instead, in the interest of your portfolio, I’m willing to… Read More

There are stocks you can buy, and then there are stocks you just admire. These “admirable” companies are strong operators, generating consistent annual growth and always finding new paths to growth. But since they perennially perform so well and are so deeply admired by investors and analysts alike, you can… Read More

The Russell 2000 Index, which is comprised of companies with small market capitalizations, is always seen as a solid proxy on the domestic economy. Smaller companies, which typically have market values between $300 million… Read More

Shares of Netflix (Nasdaq: NFLX) remain within a few percentage points of their all-time high. The video-rental firm has had quite a run, with its shares up more than 150% in the past 12 months and nearly 1,000% in the past three years. Even lackluster forward guidance issued on the evening of Monday, April 25, only put a modest dent in this highflying stock. But behind the scenes, a major problem looms. And that problem’s name is Apple (Nasdaq: AAPL). Any day now, Apple is expected to announce the… Read More

Shares of Netflix (Nasdaq: NFLX) remain within a few percentage points of their all-time high. The video-rental firm has had quite a run, with its shares up more than 150% in the past 12 months and nearly 1,000% in the past three years. Even lackluster forward guidance issued on the evening of Monday, April 25, only put a modest dent in this highflying stock. But behind the scenes, a major problem looms. And that problem’s name is Apple (Nasdaq: AAPL). Any day now, Apple is expected to announce the formal  opening of a massive new data center in Maiden, N.C. This center has been ready to go for several months, with its opening possibly delayed by plans to start building an identical data center right next door. Why should investors care? Once these buildings are open for business, the entire Apple business model will see a complete overhaul. And Netflix may be in the company’s sights. For that matter,  a raft of other technology firms could see a completely altered competitive landscape as well. Before looking into Netflix, a few words about Apple. I had… Read More

The era of cost-cutting is over. This means it’s going to get harder for companies to show radical profit gains. Indeed, the pace of upside surprises in the first quarter of 2011 has modestly lagged previous quarters, according to Zacks.com. Yet some companies continue… Read More

Companies rightly see research and development (R&D) spending as a key measure of whether a product line is fresh and capable of capturing impressive pricing and margins. When that figure is low, it’s a sure sign a company is relying on older, possibly antiquated products to carry the day. And… Read More