Buffett’s Burlington Northern Santa Fe Move: Foreshadowing the Growth of American Rail?

In late October/early November of 2009, Warren Buffett announced that Berkshire (BRK.A) was purchasing Burlington Northern Santa Fe Railroad (BNI). At the time, Burlington Northern Santa Fe was trading at just under 15 times earnings and offered a dividend yield of 1.9%. Even so, Warren Buffett received mixed reviews from the media. Some even went Read more about Buffett’s Burlington Northern Santa Fe Move: Foreshadowing the Growth of American Rail?[…]

Principles of Valuation Part 1: Price Is What You Pay, Value Is What You Get

Why have these three stocks historically commanded approximately the same True Worth™ price earnings ratio? SCANA Corp. (SCG), a public utility, has a historical earnings growth rate averaging 3.2% per annum, VF Corp. (VFC), an apparel manufacturer, has a historical earnings growth rate averaging 7.4%, and United Technologies Corp. (UTX), an aerospace and technology conglomerate, Read more about Principles of Valuation Part 1: Price Is What You Pay, Value Is What You Get[…]

Five Fast Growing Dividend Stocks vs. Five Fast Growing Growth Stocks Paying No Dividends

This article will review 10 fast growing stocks that we feel are in the sweet spot for investors interested in above average total return. In order to be considered a fast-growing company, the stock has to have demonstrated a consistent rate of change of earnings growth of between 15%-25%. We consider this the sweet spot, Read more about Five Fast Growing Dividend Stocks vs. Five Fast Growing Growth Stocks Paying No Dividends[…]

10 Super-Fast Growth Stocks With Explosive Returns

One of the things that continuously frustrates us about the investment industry is how imprecise it can be with its definitions of important terms. A second frustration that follows muddy labels is the application of statistical analysis based on faulty or inaccurate descriptions of these important terms and concepts. In our opinion, ”value investing versus Read more about 10 Super-Fast Growth Stocks With Explosive Returns[…]

Six Cyclical Stocks: When to Hold ‘Em, When to Fold ‘Em

For any investor considering investing in cyclical stocks, the admonition from Kenny Rogers’ famous song “The Gambler” should be heeded: “You got to know when to hold ’em / Know when to fold ’em / Know when to walk away / And know when to run.“ As the recent great recession has so emphatically reminded Read more about Six Cyclical Stocks: When to Hold ‘Em, When to Fold ‘Em[…]

10 High Yield REITs: Do the Yields Justify the Risk?

When I first entered the investment business, a mentor taught me that there were really only two ways that an investor could position their portfolios; they could either act as owners or they could act as loaners. Owners typically invested in equities and were therefore owners of the underlying asset class they invested in. Loaners, Read more about 10 High Yield REITs: Do the Yields Justify the Risk?[…]

High Yield Royalty Trusts: Enticing, But Not Necessarily for Retirement Portfolios

As our population ages, the quest for income to fund retirement has never been greater.With interest rates at or near all-time lows, the traditional fixed income option does not provide enough yield to meet the needs of most people desirous of living off their portfolio income.Consequently, investors are compelled to search out alternative options. Royalty Read more about High Yield Royalty Trusts: Enticing, But Not Necessarily for Retirement Portfolios[…]

Are MLPs a Good Choice for Conservative Dividend Investors?

The primary focus of this series on how to know when and why to buy a stock has thus far dealt primarily with traditional operating companies. In this fourth installment we will alter our focus as we look at master limited partnerships (MLPs). One of the big advantages that a publicly traded common stock has Read more about Are MLPs a Good Choice for Conservative Dividend Investors?[…]

Why Our S&P 500-at-1254-Before-2011 Forecast Still Stands

On September 5, 2010 we published an article on Seeking Alpha that suggested that the S&P 500 would reach 1245 by year end. This forecast was based on the S&P 500 trading at its 80 year historical normal PE ratio of 15 and a consensus earnings forecast for calendar year 2010 of $82.98. Below is Read more about Why Our S&P 500-at-1254-Before-2011 Forecast Still Stands[…]

7 Attractive Dividend Aristocrats Proving the Wisdom of the Masters

When I entered this business 40 years ago, it seemed reasonable to me to study how the best investors behaved. The two investing masters that I respected the most were Peter Lynch and Warren Buffett. If I was going to be of value to others, it only made sense that I learn as much as Read more about 7 Attractive Dividend Aristocrats Proving the Wisdom of the Masters[…]