Apple Stock: Worth $400 Per Share in 2025
With non-cyclical mega-cap, P/E ratios actually mean something. It is very difficult for a stock to justify a P/E ratio north of 20x earnings once a business is worth over $250 billion. Earning high...
View ArticleIn Defense of A Michigan Student’s Relative Wealth
Jesse Klein, a student at the University of Michigan, recently wrote a school newspaper column titled Relative Wealth that has widely circulated across the internet in the three days since she wrote...
View ArticleWhat A Nasty Dividend Stock Looks Like
On the list of possible mistakes that an income investor can make, one of them is yield-chasing which refers to buying an ownership position in a business simply because it has a very high dividend...
View ArticleCoca-Cola Raises Its Dividend 8.2% But Gives 11.59% Income Growth If You...
Last week, Coca-Cola announced that the quarterly dividend was going to increase from $0.305 per share to $0.33 per share. It is that announcement every February, dating back to 1963, that explains why...
View ArticleTwo Mid-Day Purchases
I just had to stop what I was doing in the middle of the day and purchase shares in two companies that fell in value by a meaningful amount over the past 24 years. I also produced an analysis over at...
View ArticleHow Alfred Cowles III Took The Fear Out Of Investing
In the 1930s, a youngish man named Alfred Cowles III founded the Cowles Commission for Economic Research. One of Mr. Cowles’ first projects involved back-testing stock market performance from 1871...
View ArticleGuest Post On Pepsi From Ben Reynolds At Sure Dividend
This is a guest post analyzing PepsiCo is from Ben Reynolds at Sure Dividend. Sure Dividend is focused on high quality dividend growth stocks suitable for long-term investors. PepsiCo is one of the...
View ArticleThe Real Numbers For The Stocks Of The Businesses You Own
An upcoming change to the blog: In light of a recent conversation, I finally came to my senses and realized that I need to focus on what the true earnings power of the companies I discuss happen to be...
View ArticleExxonMobil’s Owners And The Mystique Of Warren Buffett
In the summers of 2007 and 2008—when talking about oil at $150 per barrel was a real thing—Warren Buffett sunk $7 billion from Berkshire’s Omaha Treasury into Houston’s Conoco Phillips, the third...
View ArticleStifel Nicolaus Stock: A Look At The St. Louis Gem Investment
There is a reason why many long-term investors that want to compound their wealth at an exceptional rate—usually 12% annually or better over long blocks of time—tend to gravitate towards companies that...
View ArticleA Legend From Buffett And Munger: The 50th Berkshire Hathaway Letter
Perhaps other than the release of The Intelligent Investor by Benjamin Graham, The Crash and its Aftermath by Barrie Wigmore, or Quality of Earnings by Thornton O’Glove, no document will be more...
View ArticleCharlie Munger Explains Berkshire Hathaway’s Long-Term Success
Out of all the possible topics in the world that Munger could have chosen to begin his letter to investors of Berkshire Hathaway, Munger began talking about the management system and policies that...
View ArticleLessons From Warren Buffett’s Management Style
Although he didn’t mention it in this letter, Warren Buffett has repeatedly mentioned that he likes to keep a minimum of $20 billion in cash on hand to be placed in Berkshire’s coffers. The reason why...
View ArticleWarren Buffett On Never Selling Coca-Cola Stock
When Coca-Cola initially went public in 1920, it quickly found itself in the position of being a $30 million compared that was generating $9 million in annual profits. The P/E ratio was somewhere...
View ArticleWhat Warren Buffett Learned From John Wooden
When Charlie Munger discussed the factors that made Warren Buffett so successful over the past fifty years, he mentioned John Wooden’s particular method that helped him achieve so much success at UCLA...
View ArticleThe One Investment Rule That Will Never Lead You Astray
When Bejamin Graham talked about stock market valuations, he often relied on trailing metrics like the P/E ratios over the past ten, fifteen, twenty year timeframe to determine whether a company was...
View ArticleThe Cheesecake Factory: The Best Balance Sheet In The Restaurant Industry
Usually, restaurant stocks are not something to get excited about if you are looking to hold the stock for awhile. The industry itself experiences over 90% failure, and the only real success story...
View ArticleA College Friend That Is Beating Warren Buffett And Everyone Else
A guy that was in my fraternity, and took a job on Wall Street, found himself in the position of being able to invest $5,000 per month immediately after graduation. That’s a lot of money, but he is in...
View ArticleSome Perspective On The Investor Hysteria In The Oil Sector
Even though I completely understand why investors find dividend cuts unpleasant, I hold the opinion that it is incredibly self-destructive to sell a profitable company after a dividend cut because it...
View ArticleBP Stock And The Ghost Of Texaco
When people talk about the checklist of elements that make for a good investment, one of the things you will invariably hear people say is this: Good management. Find companies that are being run by...
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