Bank of America’s Bright Dividend Future
There are many people who will never own a stock that has previously cut its dividend (especially if the dividend cut occurred during a period in which they owned the stock). I find that to be an...
View ArticleStocks With Lucrative Hidden Assets
For many years, shareholders of Kansas City Southern earned meager returns while the railroad business struggled and the profits went towards the purchase of seemingly unrelated businesses like the the...
View ArticleWhy Gilead Sciences Is So Cheap
Gilead Sciences and Google are the only two firms that have come into existence during my lifetime that I would feel comfortable classifying as very long-term buy and holds. After hitting a high of...
View ArticleSelling Bad Stocks Before The Problem Materializes
Dow Chemical shareholders escaped significant capital loss in the 1960s when it sold a dietary suppressant called Ayds to Purex and then Jeffrey Martin, Inc. It was a multi-million dollar business that...
View ArticlePaired Investment Strategy
When an investor tries to find “value” with an investment purchase, there are usually two ways to do it. The first involves buying growth stocks. Here, the advantage is that the earnings per share...
View ArticleShould You Buy Mastercard Stock Now?
Absent a recession, it is almost always a given that a company growing at a fast rate will trade at a premium P/E valuation compared to the S&P 500 as a whole. One of the trickier aspects of...
View ArticleChipotle Stock: Growth-Stock Value Investing
There are two main ways that you can get a fair (or better) price on a stock with a strong growth profile. You can either purchase a stock when the general economy is in a recession, or you can...
View ArticleA Speculative Investment For The Next Recession
On page 4 of the annual report for Brunswick Corporation (BC), you will encounter the following passage: “Demand for a significant portion of Brunswick’s products is seasonal, and a number of...
View ArticleThe Dividend Production Of A Single Exxon Share
Since 1977, Exxon has raised its dividend by 7.47% annually. This is a figure that can be a little bit misleading if you intuitively conclude that it tracks the earnings growth of the firm, as the...
View ArticlePandora Is A Fundamentally Flawed Stock
One of the difficulties of evaluating firms in the nascent stage of business growth is trying to figure out the role that share dilution will have on returns. That is one of the reasons why I have...
View ArticleThe Downside of Berkshire Hathaway’s No Liability Insurance Policy
Mailbag question from a reader: “Tim, is there any downside to Berkshire’s policy of not covering the Directors with liability insurance against losses. This is something Warren Buffett occasionally...
View ArticleShould You Invest in Blue-Chip Cyclical Stocks?
When someone buys individual stocks, it seems to me that investing skill comes in three stages. You have that first stage where you struggle to dissociate changes in the price of a stock from changes...
View ArticleBrand Deterioration: What Doesn’t Show Up In The Numbers
Sardar Biglari, the Chairman of Biglari Holdings, has demonstrated an ability to execute an intelligent business strategy. Personally, I have been impressed with the turnaround he has orchestrated at...
View ArticleWal-Mart Stock In A Long-Term Investment Strategy
When you study Wal-Mart stock as a potential long-term investment, there are two conflicting pieces of evidence you have to resolve: (1) The dominance of Wal-Mart’s historical returns which have been...
View ArticleWhy Kohl’s Is A Great Value Investment
While a teacher at Columbia University, Benjamin Graham would discourage his students from making the blanket statement, “Stock X is a great investment” or the close cousin “Stock Y is a bad...
View ArticleBHP Billiton Stock At $19 Per Share
A few days ago, I discussed my process for determining whether a large-cap cyclical stock may be worth purchasing during a low point in the cyclical. The three factors of the test that were most...
View ArticleWhy Shareholder Lawsuits Against Corporations Rarely Win
If you become an officer or a director of a publicly held corporation, you will owe a duty of care to the corporation. This duty of care has three parts: (1) reasonable care; (2) good faith; and (3)...
View ArticleUnder Armour (UA) Stock: An Investing Lesson
Yesterday, shares of Under Armour (UA) fell 6.2% after Morgan Stanley analyst Jay Sole noted that Under Armour is reducing the sale price of its women’s footwear and is still expected to lose market...
View ArticleDon’t Buy Ford Stock For A Long-Term Investment Portfolio
Back in the 1910s, Henry Ford showered capital stockholders of The Ford Motor Company with regular dividends and larger special dividends as the booming growth of the Detroit locomotive manufacturer...
View ArticleFive Investment Ideas For The Next Fifteen Years
It is my expectation that two things will have a high probability of occurring sometime between now and 2026-2031: The taxes on dividends and capital gains will increase, and interest rates will be at...
View Article