It’s no secret that Warren Buffett is an incredible investor. Arguably the greatest of all-time. His track record speaks for itself — 20.5% compound annual gains from 1965 through 2018. That’s more than double S&P 500’s 9.7% annual return over the same time frame. But I’m not here to talk about Buffett’s successes, or his recent shareholder letter (which you can read here.) Instead, I want to talk about one of Buffett’s biggest failures  — and how we can take those lessons and profit. It’s the largest investment loss, in dollar terms, of his entire career. Read More

It’s no secret that Warren Buffett is an incredible investor. Arguably the greatest of all-time. His track record speaks for itself — 20.5% compound annual gains from 1965 through 2018. That’s more than double S&P 500’s 9.7% annual return over the same time frame. But I’m not here to talk about Buffett’s successes, or his recent shareholder letter (which you can read here.) Instead, I want to talk about one of Buffett’s biggest failures  — and how we can take those lessons and profit. It’s the largest investment loss, in dollar terms, of his entire career. —Recommended Link— Listen to our MiracleBlood Podcast It’s a new type of blood cell that can kill 12 types of cancer… eradicate heart disease… diabetes… arthritis… Alzheimer’s… and extend your life by another 50 vibrant years. ​Click here to listen now. Here’s the story of how Warren Buffett lost billions in the oil business…  It starts in 2007 when the Oracle of Omaha began purchasing shares of ConocoPhillips (NYSE: COP). By the end of 2007, Buffett had spent just over $1 billion. The following year, shares of ConocoPhillips continued to climb, and Buffett continued investing. By the end… Read More

With the tenth anniversary of this bull market upon us, investors have a lot to celebrate. Stocks are up, profits are growing, the economy is chugging along, the interest rate environment is relatively benign, and even on the trade-war front we are seeing some positive expectations lately. There’s nothing more bullish than a bull market. If this saying is even half-correct, the best indication we investors have that the market strength will continue is the powerful market rebound off the latest lows in December 2018. The chart below, which extends from Dec 24, 2018, to March 5, 2019, shows the… Read More

With the tenth anniversary of this bull market upon us, investors have a lot to celebrate. Stocks are up, profits are growing, the economy is chugging along, the interest rate environment is relatively benign, and even on the trade-war front we are seeing some positive expectations lately. There’s nothing more bullish than a bull market. If this saying is even half-correct, the best indication we investors have that the market strength will continue is the powerful market rebound off the latest lows in December 2018. The chart below, which extends from Dec 24, 2018, to March 5, 2019, shows the power of that rebound rally. From the market’s low on Christmas Eve, all the major U.S. indices rallied quite strongly. Here’s the grand total… #-ad_banner-#Not counting dividends, the Dow Jones Industrial Average advanced 18.4%, falling slightly behind the S&P 500’s 18.7% return. Not to be outdone, the Russell 2000 index of small-cap stocks has been leading the rebound with its 23.8% return as of March 5. The tech-heavy Nasdaq 100 has also done very well, with a 21.3% return over these two and a half months. I’m happy to report that our portfolio over at Game-Changing Stocks has done quite… Read More

A body in motion tends to stay in motion. Unless, of course, an external force is applied. Add “stock market advisor” to Isaac Newton’s resume, right along with astronomer, physicist and mathematician. Similar to physics, Newton’s first law of motion also works in investments. Kind of. While there is no physical force that moves them, stocks, much like physical objects, tend to continue moving in the same direction until something around them (or about them) changes. No one — including Newton — can or could with a high degree of certainty predict this afternoon’s breaking news or tomorrow’s big earnings… Read More

A body in motion tends to stay in motion. Unless, of course, an external force is applied. Add “stock market advisor” to Isaac Newton’s resume, right along with astronomer, physicist and mathematician. Similar to physics, Newton’s first law of motion also works in investments. Kind of. While there is no physical force that moves them, stocks, much like physical objects, tend to continue moving in the same direction until something around them (or about them) changes. No one — including Newton — can or could with a high degree of certainty predict this afternoon’s breaking news or tomorrow’s big earnings upset. What investors can do, however, is follow the trend. That’s why I recently set out with a goal to investigate stocks that are moving higher. To do this, I screened all U.S.-listed small-cap stocks (those with market capitalizations less than $2 billion but larger than $500 million) that have closed within 5% of their 52-week high. To make this screen more relevant to the goals of my Game-Changing Stocks premium newsletter, I also wanted to screen for future — expected — growth. Because this metric is based on analysts’ assessments, I also looked for stocks that were covered by… Read More

If you asked for investment advice from the world’s greatest investors, the message would be the same… Sure, their investment philosophies would differ, but their guiding principles on what it takes to be successful wouldn’t. Every one of them would cite one single thing as the key ingredient to building wealth. And that’s risk management. #-ad_banner-#Hedge Fund founder Paul Tudor Jones has a trading manifesto with 21 rules. The majority of them deal with risk management. For example, Rule No. 3 is “If I have positions going against me, I get out; if they are going for me, I keep… Read More

If you asked for investment advice from the world’s greatest investors, the message would be the same… Sure, their investment philosophies would differ, but their guiding principles on what it takes to be successful wouldn’t. Every one of them would cite one single thing as the key ingredient to building wealth. And that’s risk management. #-ad_banner-#Hedge Fund founder Paul Tudor Jones has a trading manifesto with 21 rules. The majority of them deal with risk management. For example, Rule No. 3 is “If I have positions going against me, I get out; if they are going for me, I keep them.” In other words, he cuts his losers short and lets his winners ride. Rule No. 5: “Don’t ever average losers.” Said another way, don’t throw good money after bad. Rule No. 10: “The most important rule of trading is to play great defense, not offense.” In other words, protect and preserve the capital you’ve made. Rule No. 17: “Don’t focus on making money; focus on protecting what you have.” American financier Bernard Baruch, whom after success in business devoted his time to advising U.S. Presidents Woodrow Wilson and Franklin D. Roosevelt, wrote in his 10 Rules of Investing, “Learn… Read More

Valuations matter in the long run. That’s important to remember. Especially at times like this when almost every valuation metric indicates the stock market is expensive.  There are many definitions of these terms, but, to me, valuation metrics are tools to normalize the relationship between stock prices and fundamentals. Popular metrics include the price-to-earnings (P/E) ratio and price-to-sales (P/S) ratio. There are dozens of these indicators, and each has its advantages and disadvantages.  —Recommended Link— Create a 10%+ Income Stream for Life We’re sitting on a collection of the safest, most generous monthly payers available. And while $11,200 in… Read More

Valuations matter in the long run. That’s important to remember. Especially at times like this when almost every valuation metric indicates the stock market is expensive.  There are many definitions of these terms, but, to me, valuation metrics are tools to normalize the relationship between stock prices and fundamentals. Popular metrics include the price-to-earnings (P/E) ratio and price-to-sales (P/S) ratio. There are dozens of these indicators, and each has its advantages and disadvantages.  —Recommended Link— Create a 10%+ Income Stream for Life We’re sitting on a collection of the safest, most generous monthly payers available. And while $11,200 in dividend checks is a welcome addition to anyone’s income, investors also love racking up capital gains as high as 446%. Start generating a 10%+ income stream for life today from these consistent companies. Normalizing is a way to make numbers comparable. For example, if we are talking about company earnings, we might find one company has $10 million in earnings and another has $100 million in earnings. By itself, this information really doesn’t tell investors anything about how the stock is valued.  To make earnings more comparable, companies often report earnings per share (EPS). Assuming the first company has 10… Read More

It’s good to have the best seat in the house… In all of my years at StreetAuthority, I’ve been fortunate enough to watch some of the brightest financial minds at work in this business. And every so often I like to take the spotlight and shine it exclusively on one of our premium newsletter analysts. —Recommended Link— MiracleBlood postpones old age by 50 years The full details are in our new podcast, but believe me when I say that this is huge. Click here to listen for free. I’ve done this a number of times. Often it’s in the… Read More

It’s good to have the best seat in the house… In all of my years at StreetAuthority, I’ve been fortunate enough to watch some of the brightest financial minds at work in this business. And every so often I like to take the spotlight and shine it exclusively on one of our premium newsletter analysts. —Recommended Link— MiracleBlood postpones old age by 50 years The full details are in our new podcast, but believe me when I say that this is huge. Click here to listen for free. I’ve done this a number of times. Often it’s in the form of one-on-one interviews. On other rare occasions, I’ll hand the reins of these pages over to the analyst so that they can speak directly, personally, to you. When it comes to an in-depth look at a winning strategy or important issue that could fundamentally change the way you think about investing, I’ve found that there’s simply no better way to get the message across than to sit down with one of our experts and have a detailed discussion. And judging from the feedback I’ve received over the years from you, our StreetAuthority Daily readers, a lot of you agree. Read More

In older books about the stock market, there’s a pattern called a “coil.” Precise definitions differ, but the general idea is that the price action is acting like a spring being compressed. Eventually, the spring is released, and it makes a rapid move as it reverts to its full size.  In the market, the coil is a setup for a sharp price move. The chart below shows the recent price action with a volatility indicator at the bottom of the chart.  The indicator is the Income Trader Volatility (ITV) indicator I developed to help me identify the best times to… Read More

In older books about the stock market, there’s a pattern called a “coil.” Precise definitions differ, but the general idea is that the price action is acting like a spring being compressed. Eventually, the spring is released, and it makes a rapid move as it reverts to its full size.  In the market, the coil is a setup for a sharp price move. The chart below shows the recent price action with a volatility indicator at the bottom of the chart.  The indicator is the Income Trader Volatility (ITV) indicator I developed to help me identify the best times to trade options. It’s a pure measure of volatility that responds relatively quickly to the market action. Best of all, it solves the problem of the lag that is found in many popular volatility indicators.  —Recommended Link— 9 Game Changing Predictions for 2019 Want to know where the money will be in 2019? Discover over a dozen potentially life-changing recommendations inside our special new report, 9 Game-Changing Investment Predictions for 2019. Click here for the full details now. Currently, volatility is low, as it was in September. ​​ ITV tends to move from low to high values. Current readings are… Read More