Oil, technology, minerals and banking. Those are the industries that are host to the world’s most richly-valued companies. In fact, with a market cap of more than $250 billion, these companies are larger than the gross domestic product (GDP) of countries such Portugal, Egypt or Chile. Read More

As investors continually seek out new investment ideas, it can get very tiresome. Just when you’ve found certain appealing stocks, they move up to your price target or lose operating momentum, and you’re compelled to find the next idea. But what if you could hold a stock for the whole year, a whole decade or even a whole generation? Well, that’s how people used to invest. My grandmother bought shares of AT&T (NYSE: T) in the 1950s — and never sold them. The dividend income was surely appealing. And the capital appreciation helped… Read More

As investors continually seek out new investment ideas, it can get very tiresome. Just when you’ve found certain appealing stocks, they move up to your price target or lose operating momentum, and you’re compelled to find the next idea. But what if you could hold a stock for the whole year, a whole decade or even a whole generation? Well, that’s how people used to invest. My grandmother bought shares of AT&T (NYSE: T) in the 1950s — and never sold them. The dividend income was surely appealing. And the capital appreciation helped her stay well ahead of the forces of inflation. But if my Grandma were alive today, would she still be able to find a “forever stock?” After all, in recent years, even stalwarts such as AT&T have lost their luster: Ma Bell’s shares have fallen by half since 2002. You can still find “forever stocks” if you know where to look. The key ingredient is to seek out companies with long operating histories, that sell goods or services that won’t become obsolete, and routinely generate solid rates of return on their deployed capital. Read More

The S&P 500 pushed back above 1,100 in September 2010, past the 1,200 mark in early December and is already on the cusp of 1,300. With that kind of upward move, it’s reasonable to feel cautious. You want to participate in this impressive rally, but don’t want to give up… Read More

Despite economic challenges, the United States remains as a compelling hotbed of innovation. So many items in everyday use — especially in the field of medicine — got their start here. [In fact, Andy Obermueller recently revealed his favorite game-changing medical picks in the latest issue of Game-Changing Stocks]… Read More

Every company looks at a new year as a fresh opportunity. Companies make plans to boost sales, watch costs and deliver investor-pleasing bottom-line results. The three companies we’re discussing today clearly didn’t meet those goals in 2010. But the stars are aligning for better results this year, perhaps spectacularly so. Read More

Signs have emerged in the past two weeks that China is paving the way for its currency to start appreciating. It may take a year or two to see even a 10% or 20% rise, and practically nobody else is writing about this at all (which surprises me), but this will mean big ramifications for investors. Under steady pressure from the United States, Chinese policy planners have generally shrugged at the prospect of letting its currency appreciate. In recent months, other trading partners in Asia, along with emerging powerhouses such as Brazil have also chafed… Read More

Signs have emerged in the past two weeks that China is paving the way for its currency to start appreciating. It may take a year or two to see even a 10% or 20% rise, and practically nobody else is writing about this at all (which surprises me), but this will mean big ramifications for investors. Under steady pressure from the United States, Chinese policy planners have generally shrugged at the prospect of letting its currency appreciate. In recent months, other trading partners in Asia, along with emerging powerhouses such as Brazil have also chafed at a currency policy that has been seen to help China and hurt the rest of the world. Although the rising pressure has certainly been noted in Beijing, Chinese planners have long sought to let their currency appreciate when they’re good and ready. That time finally seems to be at hand. Laying the groundwork China’s currency has actually begun to modestly appreciate in recent months. Six months ago, 10 yuan were worth about $1.46. That figure has steadily risen to a recent $1.52, though many economists think that if… Read More

It takes ample courage to bet against stocks when they’re rising. Indeed, many investors that seek out stocks to short have been moving to the sidelines throughout the late 2010 rally. Yet with stocks now notably more pricey than they were last summer, the temptation to start… Read More

It’s been 22 years since the Berlin Wall came down. Since then, economies behind the Iron Curtain have been slowly building a head of steam. Even though countries such as the Czech Republic, Romania and Croatia have not yet caught up to their Western neighbors in terms of… Read More

After two months as a newly-public company, shares of GM (NYSE: GM) have posted a decent 10% gain, slightly better than the 6% gain posted by the S&P 500. Then again, rival Ford Motor (NYSE: F) has risen by an even more impressive 14% since… Read More

There is a clear downside to the impressive bull market we’ve seen during the last 22 months: it’s getting harder and harder to find real bargains. To ferret out value plays, investors are increasingly turning to stocks that have lagged the market, hoping to… Read More