Apple (NASDAQ: AAPL) reports its third quarter earnings on July 23. Assuming lower than estimated projections, some investors will short the stock hoping to acquire shares that are discounted on the negative news. These investors will strike a gold mine as Apple rises after the potentially bad news settles. But even at its current price, Apple boasts 3 strengths that make it a good long term investment.
1. The Oracle more »
The retail industry is rapidly changing as more people purchase goods through e-commerce platforms. In fact, the transformation is so fast that entrenched online retailer Amazon.com (NASDAQ: AMZN) will soon be facing unprecedented competition from traditional retailers. For example, Wal-Mart (NYSE: WMT) and Costco Wholesale (NASDAQ: COST) are both dominant market players that continue to innovate and improve while generating investor value.
A lasting, competitive edge
Wal-Mart’s more »
A friend of mine was recently telling me about his investment in Coca-Cola (NYSE: KO). Then, he went on to say that he knows investors who match nearly every one of Warren Buffett’s investment decisions; after all, my friend said, Buffett is a legend. Our conversation prompted a question: why does Buffett chose some firms over seemingly worthy competitors? After some analysis, I now know some of the reasons more »
The invention of the printing press by Johannes Gutenberg in 1440 revolutionized the world, reducing the price of printed goods and enabling the materials to be mass-distributed. Now, technology is doing the same. Established publishing companies are facing challenging times, while social media firms like Facebook (NASDAQ: FB) and Linkedin (NYSE: LNKD) are poised to capitalize within a new market.
A dying model
Newspapers generate their revenue primarily from subscriptions more »
If past successes are any indicator of future performance, some companies will continue to please investors. Unlike Buffett and other value or fundamentalist investors, many investors look for immediate gratification. As a result, long term investors are provided the opportunity to potentially buy low and wait until their investments multiply.
The effects of a short term focus
Last Wednesday, the Chairman of the Federal Reserve announced that the Fed may more »
“…How did we get to this point? Why did we fall behind when the world around us evolved? ...Nokia, our platform is burning.”
Elop recognized the daunting task ahead of him—transforming a dying company. Over the past 2 years, he has tried to more »
The bond and treasury market is crazy. Many of today’s traders rapidly move their money in response to news releases, government policy, and negative reports. Particularly, the thought processes and potential action steps by the Federal Reserve that are making a splash in coverage leave investors wondering just where to turn in income paying investments.
Short sighted trading (not even at its best)
To recognize the hiccups in a more »
Taking control of a ship’s wheel and leading the crew to safety can be extremely difficult, especially during storms. This is why top executives and world-class CEOs are in high demand. They execute. If not, they won’t remain at the helm for very long.
Leadership gone awry
Do technology companies possess a sustainable competitive advantage? Warren Buffett doesn't think so, primarily because of the heavy R&D budgets that weigh down profits and require them to remain competitive. But with the right synergies, tech firms definitely can achieve massive gains.
A Capital Intensive Business
The energy industry is here to stay.
Data from the Energy Information Administration reveals that just U.S. natural gas production is expected to increase 44% through 2040. Furthermore, the case shows that shale gas (gas trapped in rocks underground) production will grow 113% through 2040, nearly 4.2% annualized growth. Even if those estimates are not met, the following companies will generate investor value because of their financial positions more »
Risk and rollercoasters. These are what come to mind when I think of BlackBerry (NASDAQ: BBRY).
Entrepreneur turned venture capitalist Mark Suster recently described what he believes to be the rising driving force in the market. He said:
"I believe the greatest Internet companies created over the past 15 years have been “deflationary” meaning they are driving down the prices of goods & services. They are also driving down the margins more »
Two primary options exist for companies that want to grow or fend off competitors. They can move into new markets or acquire other companies. Global brands and products tend to move into new regions of service while technology firms tend to take the acquisition approach.
Rolling out the red carpet
Some investors are avoiding data center REITs like the plague. This makes sense given rising competition, but such REITs are not yet extinct. In fact, due to a massive sell-off, some are trading at low prices. This provided a great opportunity for income-seeking investors.
Altered playing field
The Treasury market is undergoing major reconstruction. Today’s investors tend to be momentum traders. They trade with the masses on current data, policies, and news releases. As a result, major market swings occur. And, with extremely low interest rates dictated by the Fed, the bond market is going wild.
Those who do not emphasize asset allocation will get burned. Others will earn a fortune. Consider these staggering statistics:
An over-inflated balloon
The American government continues on a massive spending spree. No one can fully predict to what extent the repercussions will affect our economy. However, assets are extremely expensive as the equity market and money supply are becoming increasingly inflated. Simply looking at the S&P 500 (SNPINDEX: ^GSPCmore »)
Warren Buffett once said, “Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it.” I fully agree.
Trending economic condition
The rebounding housing market and rising Dow Jones are wreaking havoc within the utility sector. Traditionally known as safe, dividend paying investments, utility stocks are now being sold like hotcakes.
One major reason is because of the increase in bond more »
People want to be safe. Whether protecting personal information, securing payment networks, or harboring private data, security is necessary. The same holds true for investments.
The raging global security phenomena and increasing political turmoil pose many threats to governments, institutions, companies, and people. Pondering our times can be frightening, especially when considering the expansion of web-based services. We ask ourselves “If a government agency was hacked, is my more »
Earning income from owning profit-producing assets sounds great. It is.
Real Estate Investment Trusts (REIT) should comprise a part of each person’s asset allocation. Are you living in retirement, wanting supplemental dividend payments? Are you paying down the mortgage on that first house? How about the extra cash to take your family out to dinner? Regardless of the scenario, REITs can be an effective solution to portfolio needs.
Why more »
Imagine that you’re coaching one of the four teams in the NBA Eastern or Western Conference Finals. You’ve watched films, studied the competition, and prepared your team. You’re ready, and the game begins. During the first quarter, you realize, whether directly or indirectly, that you and the other coach are making similar calls. You have to wonder: Did he see my game plan?
Someone once said that more »
In a previous article, I showed why you should invest in three firms. I still won't budge.
The business landscape is rapidly shifting, but the outlook still seems bright for those who utilize the day, fundamental, or technical trading approaches. However, if you’re a true Graham follower, then you likely have already missed the boat. Take a look.
Firm Date Recommended Buy Price % Growth to Now Best Buy more »
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