January 28, 2021

Space Jam

Why did Warren Buffett do a complete about-face on the airline stocks and sell them at prices significantly below where he had been accumulating them just a few weeks before the pandemic? It’s obviously not because he panicked. Panic isn’t even in the Oracle’s repertoire. It might be because the world had so significantly changed that the classical recession playbook – buying assets in distress and...

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The Perfect Dividend Stock

In an utopian world, the perfect dividend stock would be one that is both high-yield and provide a high dividend growth rate. Its share price would appreciate ratable with its increasing dividend. All of this would be driven by increasing earnings and cash flow. Ok, so much for my fantasies, the perfect dividend stock just may be a balanced compromise. Consider the following: High Yield/Low

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5 Thoughts on a World with No Yield

The latest JP Morgan Guide to the Markets has an incredible chart showing how yield-starved the fixed income markets are across the developed world: Around 90% of developed countries have government bond yields of 1% or less. Almost 40% of these countries have negative yields. Rates are low for a reason. We’re in the midst of a depression which is a deflationary force and central banks are doing their damnedest to ...

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There are a lot of “textbook” ideas that won’t survive coronavirus and this is one of them. 

Generations of investors had been taught that, in a bear market, the most gruesome casualties would be the highest-flying, most expensive stocks. This time, the experience has been the opposite. There are a lot of “textbook” ideas that won’t survive coronavirus and this is one of them. Nothing has worked out better for investors than looking just like the index this year. The indexes have become dominate...

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How to turn newborn babies into future millionaires!

Just posted on The Compound YouTube channel: Josh is joined by Noah Kerner, CEO of Acorns, one of the most popular investing apps in America. More than seven million customers use the Acorns app to turn small change into big savings, and Noah’s goal is get the next generation of investors started even earlier – in infancy! The math of compounding is simple yet startling – and given the technology now av...

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Explaining the 2020 Stock Market

Understanding the U.S. stock market in 2020 is fairly easy — the bigger, more expensive companies are performing better than the smaller less expensive companies. That’s it. There are 505 companies in the S&P 500 with a combined market cap of roughly $29 trillion. As of Monday around noon est, the index is down 0.7% for the year. Considering the market was down 34% at the lows in March, this is a decent pl...

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The most expensive stock on earth

This weekend’s Barron’s looked at the phenomenon of technology companies with market capitalizations above $5 billion crushing the overall market this year, with names like DataDog, Fastly, Bill.com, DraftKings, Zscaler and Zoom Video all more than doubling year-to-date. Technology columnist Eric Savitz points out the most extreme performer of all, Shopify, which looks to me as though it’s now the most e...

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Chinese stocks break out

At the end of last week, China’s services PMI hit a ten-year high, signaling not only a full rebound from the coronavirus pandemic, but an actual return to broad-based economic growth for the country’s consumer economy. Chinese stocks went crazy on the news, gapping higher into a relentless rally, taking out a five-year high. It continued overnight to begin the week, with another 6% gain. Here’s the CSI3...

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4 Stocks With A Vision Of Higher Dividends

To succeed as a dividend growth investor you must identify and purchase stocks with sustainable dividend growth. Inertia is powerful force. Once a company has established a track record of growing its dividend over the decades and developed a shareholder base that expects higher dividends each year, it becomes increasing difficult for management to cut or fail to raise their dividend. No Board

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