Blog
Buying Earnings, Not Stocks!
2009-09-21
I advocate investing in the business, not the stock. Therefore, I am buying the earnings power of the business. In the long-run earnings determine market price. I consider this a law of investing. It’s really based on mathematics, or more precisely compounding. When looking for growth, I seek a rate of 15% or better. This […]
Optimism Prevails!
2009-09-18
“No pessimist ever discovered the secret of the stars, or sailed to an uncharted land, or opened a new doorway for the human spirit.” Helen Keller When you think about it, the case for optimism is compelling. Doom and gloom is always over-rated. If it wasn’t, the world economies would have collapsed long ago. They […]
Fear of Success!
2009-09-17
Fear interferes with rational thoughts. Consequently, it has no place in the investing process. A year ago people were panicked and selling stocks, indiscriminately. Now the news is reporting a strong rally and some investors are fearful it will end and collapse again. Consider a couple of points. Many good businesses, whose earnings held up, […]
Energize?
2009-09-16
The integrated petroleum industry is comprised of well-known giants. Personally, I have normally found this industry too cyclical for my taste. That said, the recession, which today was officially deemed over, may have created an opportunity. You judge for yourself. Today’s video looks at four major integrated oil companies form a perspective of historical earnings. Best […]
Health Care Beneficiaries!
2009-09-14
Health care is a hot topic today. Regardless of the outcome for reform there are companies that are poised to benefit. I am referring to companies that are part of the solution by helping to reduce costs. Today’s video looks at a few excellent companies that should thrive regardless of healthcare reform. Best when viewed in […]