Tech Truths!

Technology stocks are commonly thought of as growth stocks. However, in reality, many high profile tech stocks are very cyclical or even slow growers. Hewlett-Packard recently announced the purchase of 3Com. This will position them to compete more effectively with Cisco. Today’s video looks at the Hewlett-Packard buy of 3Com, as well as a few possibly Read more about Tech Truths![…]

Here’s How They Got So Rich!

 I watched Bill Gates’ and Warren Buffett’s interview last night. Here is how they got so rich: They both started, and therefore, held two great businesses. Today’s video looks at Microsoft and Berkshire Hathaway correlated to earnings. Best when viewed in full youtube screen. These guys started two great businesses. However, it was the earnings power of those Read more about Here’s How They Got So Rich![…]

Kohl’s – A Lesson in Value

Kohl’s reported earnings today, that beat so-called expectations. Wal-Mart reported yesterday, also better than expected numbers. Kohl’s third quarter earnings were up 21% versus the same period of 2008. However, 2008’s third quarter was a down quarter. Therefore, the increase is off of depressed numbers. Wal-Mart reported a 3.2% increase versus the third quarter of Read more about Kohl’s – A Lesson in Value[…]

Retail Sales Department Stores

Soon it will be Christmas, and the important shopping season. Coming out of the recession all eyes will be on holiday sales this year. Today’s blog will look at the retail industry, starting with the department stores, both high-end and middle-tier. Tomorrow we will review discounters. The most important principle being presented here is the Read more about Retail Sales Department Stores[…]

Carmax – Cash for Clunkers

The recent ‘cash for clunkers” government stimulus program was a shot in the arm for Carmax. Otherwise look how stock price follows earnings long term, even when short-term volatility is high. Today’s video looks at Carmax whose recent business prospects have risen along with its price. Best when viewed in full youtube screen. The real Read more about Carmax – Cash for Clunkers[…]

The Earnings Rule

 Whether earnings go up, down or sideways, in the long-run prices will follow. Over a short period of time price movement based on emotion may deviate. However, inevitably price will move to earnings. Therefore, it’s much more important and, interestingly, easier to forecast earnings than it is price. However, most people take their cue from Read more about The Earnings Rule[…]

Earnings Growth Rate = Shareholder Return Rate

Earnings Growth Rate = Shareholder Return Rate This week’s blog is focused on elaborating on the dynamics between earnings and stock price. Today’s blog looks at velocity, or what I call the rate of change. In the long run, shareholder returns are driven by the returns the business they own generates. Not the stock market, Read more about Earnings Growth Rate = Shareholder Return Rate[…]

Buffett’s All In!

 Warren Buffett says that his purchase of Burlington Northern is an “all-in-wager” on the United States. The theme of this blog is “Successful Investing Requires Optimism Built Upon Sound Fundamentals.” Warren is optimistic about our long-term future. Today’s video looks at whether or not he is basing his faith on sound fundamentals. Best when viewed in Read more about Buffett’s All In![…]