May 25, 2020

Charlie Munger on How To Outperform the Market

Charlie Munger discussing how to outperform the market over the long-term. It is not about being smart like many fund managers try to be, it is about doing the right thing a few times in your life. On why index funds outperform the majority, well that is statistics, don’t get confused by that. Index funds outperform active due to fees, active outperform individual investors when looking at averages. The key is that you do what is best for you!

4 Stocks Growing Future Yield With Increased Dividends

In the southern U.S. where I live, there has been some controversy over harvesting forests of hardwoods and reseeding them with pines. Growing hardwoods is very similar to investing in dividend stocks. What you plant or invest in today will not yield much for years to come. That is not to say progress is not seen. It is just slow and deliberate. To grow hardwoods it takes great foresight... To continue reading, please click on the article title above...

Is Levi Strauss a value bet at 13.0x P/E

Full disclosure: I bought Levi Strauss stock recently.

Here’s why (From Seeking Alpha):

Shares in Levi Strauss now trade 43% cheaper than their opening March 2019 IPO price of $22.22 putting the company’s valuation at only 13.0x TTM P/E.

Levi Strauss’s strong brand have allowed the company to achieve average return on equity (ROE) and return on invested capital (ROIC) of 34.3% and 17.6%, respectively, since 2017.

Over the past 3 years, Levi Strauss has achieved average revenue and EPS growth of 8.2% and 9.4%, respectively, which brings PEG ratios well below the 2x rule of thumb.

The company has good liquidity to survive the COVID-19 pandemic with enough cash and finances to support operating expenses and interest payments for around 10 months.

 

Critical days ahead for the stock market and economy

Alan B. Lancz sees the next 45 days as crucial to the stock market as the economy tries to reopen. Most likely the rougher it is, the worst for the market.

The man who saw the 1987 and 2008 crash coming is predicting a U-shaped recovery that is going to slow and long . We’re in all new territory here, and we could be looking at a changed America that could soon be a lesser global power.

This is going to be tough all around. Without a vaccine, we are still at risk of getting COVID-19. And a vaccine looks at least a year off.

Another good article I read today was from Nigam Arora. The author makes a good point that our time horizon makes all the difference. Sure, today Zoom, Slack and Teledoc are super hot right now. But what about in five or ten years? There are a lot of great companies having a rough time right now that will be fine in the long term.

He argues that Slack faces stiff competition from Microsoft, Zoom will start facing more competition from Alphabet, Cisco, and Google. Amazon is hitting new highs, however, Walmart is a strong competitor that will get stronger when the economy opens up.

20 tech stock picks with low debt

There are 70 companies in the S&P 500 information technology sector. However, the sector excludes several companies that the typical investor would consider technology players. So we added social-media companies, video-game developers and internet-services companies to bring our “technology” list up to 80 companies.

Will Warren Buffett have the last laugh?

Warren Buffett’s Berkshire Hathaway has sure taken a beating in the past couple of months. Berkshire Hathaway’s (NYSE:BRK.A) has lost about $64 billion in value since the coronavirus crashed the bull market party. That’s 21% since YTD. No surprise since it has such a big stake in American Airlines (NASDAQ:AAL), Occidental Petroleum (NYSE:OXY)  and Phillips 66 (NYSE:PSX).

But will Buffett not only survive this bear market as he has done before? Will Berkshire come out even stronger? Continue reading…