The Best Way to Judge Past Performance: Part Two

Introduction

On virtually every financial website on the planet there is a never-ending daily stream of stock tips and recommendations.  Consequently, the investing public is literally flooded with information and advice regarding what stock to buy today or not to buy.  Some of what is offered is supported by factual information and logic, but unfortunately, much of what is offered is merely based on the opinion of the author.  This presents quite a challenge to the prudent prospective investor seeking sound advice or guidance.  The recommendations are presented and it is left up to the individual to act on the advice or not based on the content as written. […]

Stocks for 2014: Growth and Income For Total Return Part 3

Introduction When investing in common stocks, there is no one strategy that fits all investors.  Some investors are focused on investing for income, some for capital appreciation and others for various combinations of both.  Additionally, there is the issue of risk tolerance.  Some investors are willing and capable of assuming greater risk if they believe Read more about Stocks for 2014: Growth and Income For Total Return Part 3[…]

The Dow Hits All-Time Highs, But The Truth Is It Remains Cheaply Valued

The Dow Jones industrial average sits above 15,000, an all-time high.  But don’t be fooled, this doesn’t mean that stocks are expensive.  I understand that it seems logical to assume that if the Dow Jones industrial average, what many believe to be the bellwether index of the stock market, is at an all-time high, then Read more about The Dow Hits All-Time Highs, But The Truth Is It Remains Cheaply Valued[…]

The Best Use of Corporate Profit (cash)

Introduction I have recently authored two articles showing that, all other things being equal, a stock that pays its shareholders a dividend generates a higher total return than a stock with similar growth characteristics that doesn’t. This is based on the reality that stock prices follow earnings in the long run, and it is this Read more about The Best Use of Corporate Profit (cash)[…]

If Apple Were Not A Tech Stock It Would Be Trading at $1000/share and Worth Every Penny

Introduction: The Current Mispricing of Technology At the risk of jumping on the everybody’s-writing-articles-on-Apple-bandwagon, this article is offered at the request of a loyal reader.  Our objective is to put not only Apple’s valuation into perspective, but also what we believe to be the current undervaluation of technology stocks in general.  If looking at how Read more about If Apple Were Not A Tech Stock It Would Be Trading at $1000/share and Worth Every Penny[…]

Don’t Be the Equivalent of a Stock Market Racist

There is no shortage of pundits and prognosticators willing to offer their opinions (rarely based on facts) as to whether or not stocks are cheap or expensive, or as to whether the markets are going to rise or fall.  In every case, the opinions and prognostications are directed as generalities such as stocks or markets.  Read more about Don’t Be the Equivalent of a Stock Market Racist[…]

A True Investor’s Most Important Performance Measurement

Although most people either fail to realize it, or simply refused to accept it, every stock portfolio has two separate and distinct performances.  The first, and in my opinion, the least important, is stock price movement.  If you buy a stock at $10 a share and it goes to $15 a share it’s a good Read more about A True Investor’s Most Important Performance Measurement[…]

Hewlett-Packard Is GULP (Going At An Unreasonably Low Price)

Hewlett-Packard (HPQ) is a technology stalwart that has undeniably engaged in many missteps in recent times, especially regarding the CEO position. All of these issues have certainly not gone unnoticed as the market is currently capitalizing this industry leading technology giant at a mere 7.2 times earnings. Furthermore, it should not go unnoticed that Hewlett-Packard Read more about Hewlett-Packard Is GULP (Going At An Unreasonably Low Price)[…]

Oracle Is Too Cheap To Ignore Any Longer

Within the world of investing exists a dichotomy that has often befuddled and confused us. On the one hand, we have investors that are interested in becoming owners of some of the most profitable and rapidly growing businesses on the planet. And, on the other hand, we have the trader mentality where the sole focus Read more about Oracle Is Too Cheap To Ignore Any Longer[…]

America’s Best Companies are Cheap – So Merry Christmas and a Prosperous New Year!

Let there be no confusion about the purpose and intent of this article.  It is intended to present a positive and enthusiastic defense and a reasoned support of our great country and its economic strength and promise.  There are far too many that want to criticize and denigrate our economy and the very system within Read more about America’s Best Companies are Cheap – So Merry Christmas and a Prosperous New Year![…]