Want a great stock tip? You might want to take one from Carl Icahn, since he seems to know what he’s doing. The 75-year-old investing legend earned his fortune the old-fashioned way: through leveraged buyouts and private equity deals. Since 1978, Icahn has been taking on majority stakes in companies,… Read More

Since the Berlin Wall came down nearly two decades ago, the former Eastern Bloc has received a crash course in the risks and rewards of Western-style capitalism. Despite the ups and downs, there’s little doubt that it sure as hell beats the previous communist system. During… Read More

Throughout much of the past year, a variety of financial websites — including this one — noted the sharp disconnect between projected growth rates and the price-to-earnings (P/E) ratios of many Chinese companies. It was easy to find companies growing 20% or even 30% while sporting only single-digit P/E ratios. For some, that disconnect was based on fears that the Chinese economic juggernaut would soon cool. For others, the inability to really know if these Chinese companies were legitimate was the main reason to avoid Chinese stocks. Increasingly, it’s those latter… Read More

Throughout much of the past year, a variety of financial websites — including this one — noted the sharp disconnect between projected growth rates and the price-to-earnings (P/E) ratios of many Chinese companies. It was easy to find companies growing 20% or even 30% while sporting only single-digit P/E ratios. For some, that disconnect was based on fears that the Chinese economic juggernaut would soon cool. For others, the inability to really know if these Chinese companies were legitimate was the main reason to avoid Chinese stocks. Increasingly, it’s those latter concerns that now rule the roost. An increasing number of Chinese companies are in the sights of short sellers, as they allegedly have little or no actual business underlying the seemingly impressive income statement figures. Case in point: China MediaExpress Holdings (Nasdaq: CCME). The company operates a massive advertising network on buses that ply China’s regional highways. Several short-sellers have attacked the company, noting that channel checks showed that many of the company’s claims were vastly overstated or were outright falsehoods. Shares of China MediaExpress have fallen nearly 50% since establishing a 52-week high… Read More

I love turnaround plays. Great comebacks usually start with stocks that are in the depths of depression, so unloved that the share price reflects only bad news. If you are among the early buyers at the first signs of a turning tide, your portfolio can be richly rewarded. Read More

I’d bet you had a strong opinion about it, no matter your political leanings, no matter your tax bracket.   Put simply, it has been one of the most controversial pieces of lawmaking in a generation. And no matter what you think about it, there’s no arguing the new laws are groundbreaking.   That’s exactly the sort of opportunity I’m always looking for.   #-ad_banner-#Truth be told, it’s my suspicion that this legislation — referred to by many as “ObamaCare” — will be unraveled by the courts in coming years. That’s OK. I think… Read More

I’d bet you had a strong opinion about it, no matter your political leanings, no matter your tax bracket.   Put simply, it has been one of the most controversial pieces of lawmaking in a generation. And no matter what you think about it, there’s no arguing the new laws are groundbreaking.   That’s exactly the sort of opportunity I’m always looking for.   #-ad_banner-#Truth be told, it’s my suspicion that this legislation — referred to by many as “ObamaCare” — will be unraveled by the courts in coming years. That’s OK. I think one piece of President Obama’s legacy in health care is untouchable — his push for electronic medical records (EMR).   First funded through the massive $800 billion stimulus bill passed soon after Obama took office, the idea behind EMR is that huge cost-savings can be extracted by providing physicians with total access to patient records, allowing them to avoid duplicate medical tests, watch for drug interactions, avoid errors and increase levels of efficiency in the doctor’s office, specialty clinic and hospital.   We’ve all seen how this plays out — doctors and staff are constantly asking… Read More

Even for Warren Buffett, there are limits to how many good stocks one can follow. According to his latest quarterly filings for his firm Berkshire Hathaway (NYSE: BRK-B), he’s pared his portfolio to just 25 holdings by December 31, the lowest level in several years, and down from 33 three months earlier. He’s not running form the market, though. In fact, the total value of his portfolio rose to $52.6 billion in the fourth quarter from $48.6 billion at the end of the third quarter, even as Berkshire owned fewer names. Most intriguingly, Buffett’s tightening his focus. Read More

Even for Warren Buffett, there are limits to how many good stocks one can follow. According to his latest quarterly filings for his firm Berkshire Hathaway (NYSE: BRK-B), he’s pared his portfolio to just 25 holdings by December 31, the lowest level in several years, and down from 33 three months earlier. He’s not running form the market, though. In fact, the total value of his portfolio rose to $52.6 billion in the fourth quarter from $48.6 billion at the end of the third quarter, even as Berkshire owned fewer names. Most intriguingly, Buffett’s tightening his focus. Case in point: Berkshire’s decision to sell off the remaining 5 million shares of Bank of America (NYSE: BAC), worth about $745 million, while averaging up on Wells Fargo (NYSE: WFC). Too many headaches You can understand why he fell out of love with BofA. The bank seems to be a magnet for bad news, from botched acquisitions to sloppy mortgage processing. The bank’s missteps are becoming so well-known on Main Street that Buffett presumably fears that BofA’s long-term reputation has suffered. Shares of BofA rallied nearly 30% in December, which is… Read More

In case you haven’t heard, inflation is on its way. Unprecedented levels of government debt and deficits will likely weaken the value of the dollar at some point, thus raising the prices of everything it buys. But, the Federal Reserve says… Read More

Legendary investor George Soros is a “big picture” guy. He likes to spot major themes and then find the savviest direct ways to benefit. This approach has served him well: he’s worth an estimated $14.2 billion and, according to Forbes, was the 35th richest person in the world in… Read More

 “Conglomerate” is often a scary word for investors. But conglomerates are simply companies that own businesses in various industries. The benefit of owning a conglomerate as an investment is that it often provides instant diversification. And… Read More

Conviction. It’s a concept that is rarely heard in investment circles these days, but is still one of the key traits of top investors. When they have conviction, they stick with an investment idea for the long haul, undeterred by any near-term concerns that may shake their faith. Indeed, many investors will book profits if a stock has had a strong run. It’s human nature — for most of us. Microsoft (Nasdaq: MSFT) co-founder Bill Gates does the opposite. He continues to buy into his favorite ideas even after they’ve been powering higher. Case in point: AutoNation… Read More

Conviction. It’s a concept that is rarely heard in investment circles these days, but is still one of the key traits of top investors. When they have conviction, they stick with an investment idea for the long haul, undeterred by any near-term concerns that may shake their faith. Indeed, many investors will book profits if a stock has had a strong run. It’s human nature — for most of us. Microsoft (Nasdaq: MSFT) co-founder Bill Gates does the opposite. He continues to buy into his favorite ideas even after they’ve been powering higher. Case in point: AutoNation (NYSE: AN). I told you about his interest in the company three months ago when shares traded for about $26. His bullishness came at a time when many analysts thought that shares were fully-valued on the basis of near-term operating metrics. With shares up about 42% to almost $34 since then, you’d think Gates might be content to book his profit.  But he’s buying even more. In fact he’s made three huge purchases, boosting his holdings by roughly 1.7 million shares… Read More