If the post-recession markets had to be defined by one theme, it would be the emergence of activist investors.  Shareholder activism, defined by buying control of a company with the goal of making a major change in order to enhance its value, has been around since the first traders in the Dutch East India Company. But we’ve rarely seen so much activity and oversight lately. Activist campaigns have surged from 104 in 2000 to 758 in 2016 according to Activist Insight’s annual review. Nearly half (40%) of S&P 500 companies saw activist investor campaigns in the… Read More

If the post-recession markets had to be defined by one theme, it would be the emergence of activist investors.  Shareholder activism, defined by buying control of a company with the goal of making a major change in order to enhance its value, has been around since the first traders in the Dutch East India Company. But we’ve rarely seen so much activity and oversight lately. Activist campaigns have surged from 104 in 2000 to 758 in 2016 according to Activist Insight’s annual review. Nearly half (40%) of S&P 500 companies saw activist investor campaigns in the seven years through 2015. Assets under activist management have grown nearly 20% annually for more than a decade, topping $123 billion last year. Activists have been attracted by the mountain of balance sheet cash companies hold, and the historically cheap cost of debt. That availability of money lends itself to poor checkbook control by management and an attractive source of cash return to the billionaire activists that can buy seats on a board to control it. #-ad_banner-#Oversight by large investors has helped protect shareholder rights and led to some impressive gains. A portfolio of activist targets… Read More

By the end of the 20th century, General Electric (NYSE: GE) represented the epitome of bloated, mega-cap conglomerated largesse. Helmed by management hotshot Jack Welch, GE dabbled in everything from its traditional industrial manufacturing businesses, which included heavy capital goods like locomotives and jet engines, to household appliances and media property ownership (NBC). But its crown jewel was its finance arm, GE Capital, which was used to help customers finance the jet engines and the locomotives. But after the turn of the millennium, GE wasn’t so lucky. The bear market that began with the bursting of the tech bubble mauled… Read More

By the end of the 20th century, General Electric (NYSE: GE) represented the epitome of bloated, mega-cap conglomerated largesse. Helmed by management hotshot Jack Welch, GE dabbled in everything from its traditional industrial manufacturing businesses, which included heavy capital goods like locomotives and jet engines, to household appliances and media property ownership (NBC). But its crown jewel was its finance arm, GE Capital, which was used to help customers finance the jet engines and the locomotives. But after the turn of the millennium, GE wasn’t so lucky. The bear market that began with the bursting of the tech bubble mauled the company’s stock price, sending it down a full 56%. Prices recovered somewhat only to be hammered down by the 2008 Financial Crisis and resulting credit freeze, which threatened the very existence of the company. While the stock is up 195% from those 2009 market lows, it’s been a long road back and the price has more or less moved sideways for the last three years. But that may be about to change. Jeff Immelt, the CEO that guided the company through the dangers of 2008, recently retired, handing the reins over to John Flannery. Prior to his… Read More

Cryptocurrency investing is quickly shifting from a hacker novelty to mainstream practice. Cryptocurrencies like bitcoin and ethereum have become so popular that major money management firms and central banks are taking this technology very seriously.  Investors have earned near-unbelievable returns from the leading cryptocurrency names over the last 24 months. Insane volatility combined with massive future potential has attracted both short-term traders and long-term investors to the fray.  Beyond simply creating a medium of exchange, the technological innovation at the heart of these currencies, known as the blockchain, is revolutionizing how business is conducted. Dozens of major banks and money… Read More

Cryptocurrency investing is quickly shifting from a hacker novelty to mainstream practice. Cryptocurrencies like bitcoin and ethereum have become so popular that major money management firms and central banks are taking this technology very seriously.  Investors have earned near-unbelievable returns from the leading cryptocurrency names over the last 24 months. Insane volatility combined with massive future potential has attracted both short-term traders and long-term investors to the fray.  Beyond simply creating a medium of exchange, the technological innovation at the heart of these currencies, known as the blockchain, is revolutionizing how business is conducted. Dozens of major banks and money management firms have pending projects in this space, including industry-leading names like Citi, Credit Suisse, UBS, and MetLife.  What has me most excited is the fact that everyday investors can easily get involved with this world-changing technology. In fact, one of the world’s most popular cryptocurrencies is currently trading at just $0.18, allowing widespread participation regardless of your account size.  #-ad_banner-#If you think it’s too late to participate in what could be the most profitable market of all time, you are dead wrong. The industry is still in its infancy despite the explosive growth over the last year. Read More

March of 1998 was a big month for Pfizer and its shareholders. That’s when the new little blue pill called Viagra was released. It was a breakthrough for the pharmaceutical industry — the first ever male performance enhancement drug. Viagra’s commercial release created a new multi-billion drug market virtually overnight. Millions of American men and women enjoyed the benefits of the drug, but the biggest winner was Pfizer shareholders. As Viagra delivered record sales month after month, Pfizer’s share price jumped 64% in 12 months. Take a look below. Today, I see this same pattern repeating itself in… Read More

March of 1998 was a big month for Pfizer and its shareholders. That’s when the new little blue pill called Viagra was released. It was a breakthrough for the pharmaceutical industry — the first ever male performance enhancement drug. Viagra’s commercial release created a new multi-billion drug market virtually overnight. Millions of American men and women enjoyed the benefits of the drug, but the biggest winner was Pfizer shareholders. As Viagra delivered record sales month after month, Pfizer’s share price jumped 64% in 12 months. Take a look below. Today, I see this same pattern repeating itself in the cannabis industry. The FDA is close to potentially approving its first ever cannabis pharmaceutical — a final ruling could happen by the end of 2017, less than 12 weeks away. #-ad_banner-#This would be a ground breaking approval for the entire pharmaceutical industry and particularly for the cannabis industry. It could also give birth to the first ever cannabis blockbuster drug. This drug could generate more than $1 billion in annual revenue. Just like Pfizer with Viagra, this drug could send shares of this promising young cannabis biotech soaring over the next 12 months. The Company Behind This Game-Changing Treatment… Read More

About the only point of agreement between the two Presidential candidates last year was the need for a massive infrastructure plan to repair America’s crumbling roads and bridges. Then-candidate Trump used a $1 trillion infrastructure plan as a cornerstone of his plan to “make America great again.” Investors responded by going all-in on infrastructure stocks, pushing the iShares Global Infrastructure ETF (Nasdaq: IGF) up 14.5% in the year through October 2016.  Against the push to replace the Affordable Care Act and reform the tax code, infrastructure spending seems to have been put on the backburner in 2017. President-elect Trump… Read More

About the only point of agreement between the two Presidential candidates last year was the need for a massive infrastructure plan to repair America’s crumbling roads and bridges. Then-candidate Trump used a $1 trillion infrastructure plan as a cornerstone of his plan to “make America great again.” Investors responded by going all-in on infrastructure stocks, pushing the iShares Global Infrastructure ETF (Nasdaq: IGF) up 14.5% in the year through October 2016.  Against the push to replace the Affordable Care Act and reform the tax code, infrastructure spending seems to have been put on the backburner in 2017. President-elect Trump told The New York Times in December that infrastructure would not be a “core” part of the first few years of his administration. A policy statement released in June was light on specifics and we haven’t heard much since. As it turns out, investors may not need an infrastructure plan to see a boom in infrastructure spending over the next year. In fact, recent events could mean years of rebuilding and increased revenue at infrastructure and related companies. #-ad_banner-#​A Year Of Unprecedented Natural Disasters On August 11, I warned investors about the potential for a blowout… Read More

Warren Buffett is by far the most successful long-term stock investor of all time. His value-centric approach has returned an astounding 1.9 million percent since taking control of Berkshire Hathaway in the mid-1960s.  Although Buffett’s portfolio has recently suffered a little, investors are still handsomely rewarded for following his advice and stock picks. Here are five of Buffett’s holdings that can set you up for an easier retirement.  1. Synchrony Financial (NYSE: SYF) This consumer finance company was spun out of GE Financial back in 2015. It currently comprises about 0.30% of Berkshire Hathaway’s stock portfolio. Buffett loves credit… Read More

Warren Buffett is by far the most successful long-term stock investor of all time. His value-centric approach has returned an astounding 1.9 million percent since taking control of Berkshire Hathaway in the mid-1960s.  Although Buffett’s portfolio has recently suffered a little, investors are still handsomely rewarded for following his advice and stock picks. Here are five of Buffett’s holdings that can set you up for an easier retirement.  1. Synchrony Financial (NYSE: SYF) This consumer finance company was spun out of GE Financial back in 2015. It currently comprises about 0.30% of Berkshire Hathaway’s stock portfolio. Buffett loves credit card and consumer finance companies — he also owns stakes in American Express (NYSE: AXP) and Mastercard (NYSE: MA). However, I firmly believe the best investment results, going forward, will be gleaned from Synchrony Financial. Here’s why: Synchrony is the largest issuer of private label credit cards in the United States. This means that retailers like Walmart, Amazon, and Lowes, among many others, utilize Synchrony to manage their credit services. I love the fact that company profits are retailer-agnostic, meaning that regardless of who is winning the retail battle, Synchrony will continue to benefit from transactions. #-ad_banner-#Companies like Synchrony profit… Read More

Over the course of two decades in the professional investment business, I’ve stumbled onto stock ideas purely by accident maybe a couple dozen times. Sometimes I’m looking for one thing and find another. More than once, I’ve typed in the wrong symbol. That happened again recently. And after some digging, I decided that I had had to write about my find. There’s a better than decent chance that at some point, while growing up in the United States, your mom probably used Scott’s Liquid Gold furniture polish at least once. Here’s a television commercial from the… Read More

Over the course of two decades in the professional investment business, I’ve stumbled onto stock ideas purely by accident maybe a couple dozen times. Sometimes I’m looking for one thing and find another. More than once, I’ve typed in the wrong symbol. That happened again recently. And after some digging, I decided that I had had to write about my find. There’s a better than decent chance that at some point, while growing up in the United States, your mom probably used Scott’s Liquid Gold furniture polish at least once. Here’s a television commercial from the 1970s to jog your memory.  Think the brand is dead? Nope. Owned by some gigantic consumer products mega-cap like Procter and Gamble (NYSE: PG)? Nope. It’s still made in Denver, CO where it was invented at the turn of the 20th century. The company is still owned by the family that bought the original formula from inventor Lee Scott for $350 (not a misprint) in 1951.  #-ad_banner-#Even more remarkable, the company, Scott’s Liquid Gold, Inc. is publicly traded (OTC: SLGD). It’s a tiny company with a consolidated market cap of barely $25 million. Typically, I don’t dive into the extremely… Read More

Guns, cash and his entire coin collection — including his Indian Head Gold Quarter Eagle — were gone. Stolen. The perpetrator had taken an oxygen-acetylene torch to the door of his Fort Knox safe and snatched his precious belongings.  Of course, my grandfather was bummed that his stuff was taken, but what unsettled him most about the entire ordeal was the feeling of intrusion — someone invading his privacy.  New guns can be bought, Fort Knox replaced the vault for free, but what can’t be restored is that feeling that your privacy has been violated — knowing that a stranger… Read More

Guns, cash and his entire coin collection — including his Indian Head Gold Quarter Eagle — were gone. Stolen. The perpetrator had taken an oxygen-acetylene torch to the door of his Fort Knox safe and snatched his precious belongings.  Of course, my grandfather was bummed that his stuff was taken, but what unsettled him most about the entire ordeal was the feeling of intrusion — someone invading his privacy.  New guns can be bought, Fort Knox replaced the vault for free, but what can’t be restored is that feeling that your privacy has been violated — knowing that a stranger forced his way into your home and stole your property.  These sorts of intrusions, however, are happening more frequently than ever. But not in the traditional sense… #-ad_banner-#These new perps aren’t coming through your window or your back door and they’re not stealing cash or rare coins. You see, there is something more valuable to these new thieves than the things in your home. Instead of cash, collectibles and jewelry these thieves want your name, date of birth, Social Security number, credit card information and your driver’s license…  They want your identity.  By now, you’ve likely heard about the massive… Read More

The next big thing… It’s the holy grail for investors. I mean how many investors wish they had bought Microsoft in 1986? Or Apple in the 1990s?    If you were prudent enough to take a chance on either of these companies, a relatively small investment a few years back would have made any investor fabulously wealthy today. And it’s that kind of wealth creation that drives investors to seek the next big thing.   But too many investors make the process of finding the next big thing too complicated. After all, if it’s the next big thing, it shouldn’t… Read More

The next big thing… It’s the holy grail for investors. I mean how many investors wish they had bought Microsoft in 1986? Or Apple in the 1990s?    If you were prudent enough to take a chance on either of these companies, a relatively small investment a few years back would have made any investor fabulously wealthy today. And it’s that kind of wealth creation that drives investors to seek the next big thing.   But too many investors make the process of finding the next big thing too complicated. After all, if it’s the next big thing, it shouldn’t be impossibly hard to identify early on, right?   So what if you were told that more than 500,000 cars, capable of driving themselves, are going to come off the assembly line in 2018? Better yet, these cars will come off the assembly line at a cost of $35,000 — about the average price of a new car in America.   #-ad_banner-#But that’s not even the remarkable part…   You see, experience tells me that self-driving technology will not just drive itself — it will also be electric.    Even The Wall Street Journal agrees, saying, “The electric powertrain, unlike… Read More

As a lifelong resident of a hurricane-prone area, and having sat through more than a handful of them, I feel a little guilty promoting what some people refer to as “disaster capitalism”. At the same time, one of the greatest investors of all time, Baron Rothschild, proffered that one should “buy when you hear the cannon, sell when you hear violins.” I’ve referenced that quote multiple times in my writing and will continue to do so because it’s some of the best investing advice ever. After unloading an estimated 33 trillion gallons of water on the United States, mostly on… Read More

As a lifelong resident of a hurricane-prone area, and having sat through more than a handful of them, I feel a little guilty promoting what some people refer to as “disaster capitalism”. At the same time, one of the greatest investors of all time, Baron Rothschild, proffered that one should “buy when you hear the cannon, sell when you hear violins.” I’ve referenced that quote multiple times in my writing and will continue to do so because it’s some of the best investing advice ever. After unloading an estimated 33 trillion gallons of water on the United States, mostly on coastal Texas, Hurricane Harvey could be responsible for damage exceeding $180 billion. In the Houston area alone, it’s estimated that nearly 40,000 homes have been completely destroyed. Even more remarkable was the projected number of cars completely ruined by the floodwaters. Again, in just the Houston area, which is heavily auto-dependent, the total could be over 1 million vehicles. The number is much higher if the entire affected area is included. According to auto researcher Kelley Blue Book, the average transaction price for a new car in the United States is currently $33,560. That means that replacing the lost cars… Read More