Invest like a young Warren Buffett
March 15, 2010
The following article contains a blueprint. The exact formula’s and functions to use with a stock screener to find stocks a young Warren Buffett would buy. These stocks are not just cheap, they have low debt levels, high quality management and strong profit margins.
A lot of us wish we could invest like Warren Buffett — and for good reason. Buffett and his partners acquired control of Berkshire Hathaway (BRK.A, news, msgs) in 1965. Since then, by taking positions in publicly traded companies such as McDonalds (MCD, news, msgs) and buying other companies outright, Buffett transformed Berkshire into, in effect, a closed-end mutual fund.
Be Careful What Bandwagon You Jump Onto
March 3, 2010
The Financial Times printed excerpts of an interview with Duncan Niederauer, the Chief Executive of NYSE Euronext. (See “NYSE chief cautious over March rally”, http://www.ft.com/cms/s/0/ae73a390-29e6-11de-9e56-00144feabdc0.html.) In the interview he stated that the recent rally in the stock market was being driven by short-term traders trying to take advantage of the high volatility that currently existed in the financial markets. He continued that the high trading volumes achieved where concentrated in a “handful of stocks.”
How Not to Invest
June 10, 2009
I always get excited when changes to the Dow Jones Industrial Average (DJIA) occur. I don’t really know why. But you can bet I was glued to my TV when Chevron, Bank of America, and Kraft replaced Honeywell [HON: 41.765, +0.885 (+2.16%)], Altria [MO: 22.768, +0.108 (+0.48%)], and AIG [AIG: 35.57, -0.09 (-0.25%)] last year. This year, the DJIA has changed yet again, with Cisco [CSCO: 20.3798, +0.1198 (+0.59%)] and Travelers [TRV: 50.10, -0.21 (-0.42%)] replacing GM [GM: 0.75, 0.00 (0.00%)] and Citi [C: 3.87, +0.0225 (+0.58%)].
Buy and Hold is Alive and Well
May 27, 2009
Every time the United States goes through a recession, the pundits all race to be the first to proclaim that “Buy and Hold” is dead. I can’t watch a financial news channel or read a financial website without some mention of this proclamation. Well I’m growing tired of it, and if it were up to me, I’d prohibit anyone else from making this point for the rest of 2009.
Buy and Hold is not dead, and I’m on a mission to prove it. Buy and Hold has worked brilliantly for decades, and it will continue to do so in the future. The stock you bought in 2007 is worth less now than what you bought it for? Oh boohoo, go cry me a river…somewhere else. The economy has peaks and troughs, and we’re in the middle of one of the more serious troughs since the Great Depression. Read more
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