Andrés Cardenal

Editor's Choice

  • Don’t Make This Expensive Mistake

    By Andrés Cardenal - August 19, 2013 | Tickers: NFLX, TSLA | Editor's Choice

    Valuation can be very important when it comes to making investing decisions, be it on the long side or the short side. However, valuation ratios should always be analyzed in the context of the company´s overall business strategy and growth potential. Shorting disruptive growth companies only because they seem overvalued can be a very expensive mistake.

    The value of uniqueness
    Tesla Motors (NASDAQ: TSLA) has been a textbook example more »

  • This Biotech Leader Is Poised to Outperform

    By Andrés Cardenal - June 26, 2013 | Tickers: ABBV, GILD, JNJ, MRK | Editor's Choice

    Investing in biotech companies can be risky; developing new drugs is a long, expensive, and uncertain process, and there is always considerable regulatory risk in the industry. When it comes to Gilead (NASDAQ: GILD), however, its dominant position in HIV treatment and the company’s growth prospects make it look like a long term winner.

    Leadership

    Gilead is the undisputed leader in HIV treatments; the company makes more than 75 more »

  • Following Buffett Into This High Quality Bank

    By Andrés Cardenal - June 10, 2013 | Tickers: BAC, C, JPM, WFC | Editor's Choice

    Warren Buffett knows a couple of things about investing, especially when it comes to the financial sector. The Oracle of Omaha has been regularly accumulating Wells Fargo (NYSE: WFC) for a long time, and it has even become the biggest stock position in Berkshire Hathaway´s portfolio. Even if the stock has been rising steeply over the last months, it´s not too late to follow Buffett into this high more »

  • Warren Buffett Is Not Irreplaceable for Berkshire

    By Andrés Cardenal - May 29, 2013 | Tickers: BRK-B, BRK-A, GS, HNZ | Editor's Choice

    Is Warren Buffett irreplaceable? Can Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B) continue thriving without its genius leader? Buffett is clearly a unique person and an exceptional business leader, and he will be missed by all those who love the markets and investing ... even more by Berkshire investors.

    However, given the size of the company, and its current approach to investing, Berkshire Hathaway will most likely continue making great investments and more »

  • Dimon Is a Good CEO and a Lousy Chairman

    By Andrés Cardenal - May 28, 2013 | Tickers: BAC, JPM, WFC | Editor's Choice

    Jamie Dimon has finally got what he wanted and he is going to remain as both CEO and Chairman of the Board at JPMorgan (NYSE: JPM). Unfortunately for investors in the company, Dimon´s victory is comes at the expense of better corporate governance.

    Two different jobs

    There is a reason why CEO and Chairman of the Board are separate jobs; they are two different roles with their own duties more »

  • The Right Way to Replicate Hedge Fund Holdings

    By Andrés Cardenal - May 16, 2013 | Tickers: ALFA, AIG, GURU, JCP | Editor's Choice

    Replicating the moves of the most famous and renowned hedge fund managers is certainly an interesting idea. After all, they are supposed to be the “smart money” and they should be able to make some really smart investing decisions to justify the hefty fees they charge to clients for their services.

    But investors need to be careful in their approach to this strategy, hedge funds holdings can be a fertile more »

  • Buying Gold is Not Investing

    By Andrés Cardenal - April 16, 2013 | Tickers: AAPL, IAU, GLD | Editor's Choice

    Gold has enormous masses of followers and even fanatics who think that it's the best possible investment someone can make in the current economic and political environment, perhaps even the only reasonable one. Especially now that volatility has increased and the price of gold has taken a serious hit, the discussion is getting more intense and louder than ever.

    Gold bulls are pointing fingers and talking about price manipulation more »

  • Buying Gold is Not Investing

    By Andrés Cardenal - April 16, 2013 | Tickers: AAPL, IAU, GLD | Editor's Choice

    Gold has enormous masses of followers and even fanatics who think that it's the best possible investment someone can make in the current economic and political environment, perhaps even the only reasonable one. Especially now that volatility has increased and the price of gold has taken a serious hit, the discussion is getting more intense and louder than ever.

    Gold bulls are pointing fingers and talking about price manipulation more »

  • 3 Indestructible Dividend Companies for Times of Uncertainty

    By Andrés Cardenal - April 3, 2013 | Tickers: KO, XOM, PG | Editor's Choice

    If you have been reading the news lately, you most likely know that the conflict with North Korea has been escalating rapidly over the last days. Unfortunately, there is no way to know for certain how these things may turn out, but let´s hope for everyone´s sake that this is just another episode of inflamed rhetoric by a decaying dictatorship and it does not become anything more serious more »

  • The Problem with Microsoft

    By Andrés Cardenal - March 20, 2013 | Tickers: AMZN, AAPL, GOOG, MSFT | Editor's Choice

    To say that the last decade has been uninspiring for Microsoft (NASDAQ: MSFT) investors may be an understatement. Shareholders in the company have basically seen their stock moving sideways over the past 10 years, while other tech titans like Apple (NASDAQ: AAPL), Google (NASDAQ: GOOG) and Amazon (NASDAQ: AMZN) delivered amazing returns.

    <img alt="" src="http://g.fool.com/editorial/images/24853/price_large.jpg" />

    The problem with Microsoft is not about products or technologies; the issue is its management team and an more »

  • Apple is Still a Growth Stock

    By Andrés Cardenal - February 14, 2013 | Tickers: AMZN, AAPL, CMGE | Editor's Choice

    Most of the negativity surrounding Apple (NASDAQ: AAPL) seems to be focused on the belief that the company has allegedly lost its status as a leading growth stock. Apple is strictly secretive about new product launches, so there is no way to know for certain what's in its pipeline of new products. With competitors like Samsung gaining market share in emerging markets, many believe that Apple is now a more »

  • The Best Thing Apple Can Do With its Cash

    By Andrés Cardenal - February 9, 2013 | Tickers: AAPL, BRK-B, BRK-A, NFLX | Editor's Choice

    Hedge fund manager David Einhorn has made a lot of waves recently by urging Apple (NASDAQ: AAPL) to put its cash to better use. Einhorn is right in pointing put the fact that the company is mismanaging its assets by keeping an enormous amount of cash in low-return investments as opposed to unlocking that value in the benefit of shareholders.

    His proposal regarding that money is certainly smart and innovative more »

  • The Product That Apple Needs to Build

    By Andrés Cardenal - February 6, 2013 | Tickers: AAPL, GOOG | Editor's Choice

    Investors are eagerly awaiting the next big thing from Apple (NASDAQ: AAPL), especially now that Wall Street analysts are questioning the company’s ability to continue innovating and growing. From a new Apple TV to a smart watch, there are all kind of rumors and speculations, many of which have some real long term potential. But simple and less dramatic innovations, like a bigger iPhone, should not be dismissed.

    A more »

  • Apple: Enough Already!

    By Andrés Cardenal - January 24, 2013 | Tickers: AAPL, MSFT | Editor's Choice

    At this stage, many Apple (NASDAQ: AAPL) investors are feeling a combination of anger and confusion due to the market´s brutal reaction to the company´s earnings report, falling by more than 10% to $460 on Thursday morning—a loss of nearly 35% from September’s highs.

    But before you panic and make a regrettable move, like selling your Apple shares or setting an Apple store on fire, there more »

  • Apple: New iPhone Coming?

    By Andrés Cardenal - January 4, 2013 | Tickers: AAPL, CMGE, GOOG, MSFT, NOK | Editor's Choice

    According to reports by different Wall Street analysts, Apple (NASDAQ: AAPL) may be planning to launch a new iPhone in the upcoming months. While Topeka Capital analyst Brian White believes it will see the market in May or June, Peter Misek from Jefferies has a slightly longer timeframe, expecting it by June or July. Numerous technology blogs and websites are supporting this rumor too, so it has been gaining a more »

  • Apple: Growth Opportunities Are Underestimated

    By Andrés Cardenal - December 20, 2012 | Tickers: AMZN, AAPL, GOOG, NFLX, VOD | Editor's Choice

    Jay Arrow from Business Insider recently published an interesting article regarding Apple (NASDAQ: AAPL), basically stating that the years of extraordinary growth for the company are now in the past. Some Wall Street analysts have been reducing their price target for the company due to lower growth forecasts, so the issue is quite relevant for investors.

    There are some strong reasons to believe that these observers may be underestimating Apple more »

  • Five Mistaken Reasons to Sell Apple

    By Andrés Cardenal - December 14, 2012 | Tickers: AMZN, AAPL, CMGE, GOOG, MSFT | Editor's Choice

    Shares of Apple (NASDAQ: AAPL) look like they just can't stop falling, and all kind of explanations are permanently discussed among analysts and the financial media. Let's take a look at some of the most popular explanations for the fall, so perhaps we can get a clearer image about the big picture for Apple and its long term perspectives.

    1 – Lower Carrier Subsidies

    Carriers in different countries have more »

  • Felix Salmon Is Wrong: Berkshire Will Outperform

    By Andrés Cardenal - December 6, 2012 | Tickers: BRK-B, BRK-A, IBM, SPY, WFC | Editor's Choice

    Felix Salmon published a very interesting column in Reuters this week, where he explains the rationale for believing that the good times are over for Berkshire Hathaway (NYSE: BRK-A)  (NYSE: BRK-B) and Buffett will no longer outperform the markets over the next years.

    Salmon is one of my favorite writers; he is very smart and fun to read, but I believe he is plain wrong this time. In fact, I more »

  • Investing in the Right Kind of Business

    By Andrés Cardenal - November 26, 2012 | Tickers: HPQ, IBM, MCD, SBUX, TEA | Editor's Choice

    “A horse that can count to ten is a remarkable horse—not a remarkable mathematician.” Likewise, a textile company that allocates capital brilliantly within its industry is a remarkable textile company—but not a remarkable business.

    Warren Buffett (1985)

    The above quote from Warren Buffett can be a valuable lesson for investors; even the best company can be a lousy investment when it’s operating in a declining industry. For more »

  • The Good, the Bad and the Ugly

    By Andrés Cardenal - November 14, 2012 | Tickers: AON, GM, GOOG, MANU, NKE | Editor's Choice

    For those of us who understand the passion involved in football –  called soccer in the US –  Manchester United (NYSE: MANU) sounds like a unique opportunity to invest in one of the most powerful teams on the planet, with a tremendous brand power and millions of followers on a global scale. Digging below the surface, however, the economics of an investment in United don't seem very exciting, and the management more »

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