The Difficulty Of Valuing Gilead Sciences
Gilead Sciences caught my attention in February when the price of the stock fell to $82 from its 2015 high of $125 per share. I wrote it about it then, likening the anxiety that was dragging down the...
View ArticleVWEHX: Vanguard High-Yield Bond Fund
VWEHX, the Vanguard High-Yield Corporate Fund, has been a great to investors since its inception in December 1978. VWEHX has generated 8.41% annual returns durings its thirty-two years in existence,...
View ArticleWarren Buffett Buys 10% Of Wells Fargo
You know what I would like to read? A biography of the successful life decisions made by biographers using the knowledge acquired while covering the strategies of other successful people. I have this...
View ArticleTesla’s Stock Price Will Doom Investors Buying Now
Every now and then, you might encounter something in the stock market that makes you wonder: Am I crazy, or is everyone crazy? With what is going on at Tesla right now, I want to offer you the...
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Earthquakes May Not Be Covered By Your Insurance Policy
I understand why insurance is the last topic anyone wants to talk about. Insurance policies can be both boring and complex–quite the double whammy!–and often times, the source of the insurance...
View ArticleFacebook Stock Should Decline At Least $24 Per Share By 2022
The most optimistic 2022 earnings per share expectation for Facebook is $4.50. If the stock trades at 20x earnings, the per share value of the social media giant would be $90. If it trades at 25x...
View ArticleThe Investor’s North Star For The Next Twenty Years
Aside from the usual recommendations to own companies with dominant market positions, strong balance sheets, and high earnings growth, what is something that investors should keep in mind over the next...
View ArticleLong-Term Investing Lessons From The Cereal Industry
In February, Business Insider published an article titled “Millennials Aren’t Eating Cereal Because It’s Too Much Work.” The tongue-in-cheek title had some data points to consider. American cereal...
View ArticleWells Fargo vs. Bank of America Stock: Depends On Your Time Horizon
To my knowledge, this hasn’t gotten any media attention, but it’s an interesting fact that the Wells Fargo loan portfolio currently has a higher nonpayment rate than the Bank of America loan portfolio....
View ArticleKellogg Stock Since The Recession
I recently discussed how, contextually, the performance of Kellogg stock these past sixteen years has been nothing short of remarkable considering that the cold cereal market shrunk to about two-thirds...
View ArticleStock Certificates With $0.01 Par Value
Although it seems archaic to us now, it used to be the case that forming a corporation involved going door-to-door across the state searching for potential investors that would provide the cash that...
View ArticleWhat Does 3G Capital Teach Us About Reality?
Last March, Charlie Munger was asked about Berkshire Hathaway’s partnership with 3G Capital that has resulted in an unspecified number (estimated to be in the 4,000-8,000 range) of jobs that have been...
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The Cigarette and Tide Pod Approach To Investing
Irving Fisher’s “The Money Illusion” is a life-changing economic treatise because it strongly advances the principle of thinking in terms of purchasing power rather than nominal dollars. We all have...
View ArticleCostco Investors: Don’t Overpay, Especially For Retail Stocks
Costco Wholesale (COST) is an excellent corporation. It has an extraordinary Board of Directors that includes Berkshire Hathaway Vice Chairman Charlie Munger, has grown profits by 11% annually for a...
View ArticleJohnson & Johnson Stock Dollar Cost Averaging
I understand people who are looking to invest a significant sum of capital into a single stock, take a look at Johnson & Johnson sitting there at $109, and conclude that it would not be the best...
View ArticleSo When Would You Sell Johnson & Johnson Stock?
Now, for the flip side of the argument. Just as it is a mistake to sell a corporation like Nike or Johnson & Johnson when the market quotation of the stock looks like it might have gotten a little...
View Article12% Annual Returns Through 2021
Diageo (DEO) is fast becoming my best idea for risk-adjusted returns over the medium term. Among non-cyclical business sectors, it seems that almost everywhere you look, you either have to pay towards...
View ArticleNever, Ever Make A Long-Term Investment In Alcoa
I had gotten some e-mails from readers asking about Alcoa’s proposed spinoff of Arconic later this year, and I don’t currently have any comment on the quality of Arconia as an investment because I...
View ArticleBeer Dividends From Diageo
In 2007, Diageo debuted its publicly traded ADR with the ticker symbol DEO for investors in the United States. An ADR means a sponsoring bank–in the case of Diageo, it is the Bank of New York...
View ArticleMy Biggest Investing Lesson This Year
An important lesson that has probably taken me too long to pick up is that corporations with leveraged balance sheets tend to have a management culture that will perpetuate those leveraged balance...
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