China’s GDP growth is projected by the Chinese Academy of Social Sciences to be 9.9% this year, making it by far the fastest-growing economy in the world. Although Chinese “A” shares, shares of mainland China-cased companies, are generally… Read More
Value Investing
[Editor’s Note: On Wednesday, Andy Obermueller, editor of Game-Changing Stocks, gave his take on the resignation of David Sokol, one of the frontrunners to replace Warren Buffett at the helm of Berkshire Hathaway. Now, it looks like Ajit Jain, Buffett’s insurance man extrordinaire, may be “the man.” Funny enough, StreetAuthority’s… Read More
David Sokol, considered by many to be the leading candidate to replace Warren Buffett as the chairman of Berkshire Hathaway (NYSE: BRK-A, BRK-B), has resigned. His stated reason was to build up a business to leave to his family. The real reason, it seems, is that Sokol took a major position in Lubrizol before Berkshire bought it at a substantial premium in a $9 billion deal. The bottom line is that these transactions always become known, and Sokol, who’s arguably one of the most capable executives in the world, got out in front of the bullet… Read More
David Sokol, considered by many to be the leading candidate to replace Warren Buffett as the chairman of Berkshire Hathaway (NYSE: BRK-A, BRK-B), has resigned. His stated reason was to build up a business to leave to his family. The real reason, it seems, is that Sokol took a major position in Lubrizol before Berkshire bought it at a substantial premium in a $9 billion deal. The bottom line is that these transactions always become known, and Sokol, who’s arguably one of the most capable executives in the world, got out in front of the bullet and left before he had to. Warren Buffett and Berkshire Hathaway are more than one man’s name and that of a large company — they are a platinum-coated brand that implies the absolute highest ethical and business standards. Berkshire, despite its gargantuan, multi-billion dollar market cap, is still a handshake company. Buffett has the cash to make the world turn with a phone call, sure, but his cache is more than that. The world trusts him. He’s known for being a straight-shooter. Sokol’s actions, which Buffett thinks are legal to the letter of the law, would still… Read More
Given enough time, the small caps from any industry are apt to outperform their large caps siblings. The problem is, investors tend to gravitate toward the larger and more familiar names, while the worthy, off-the-radar small caps tend to be overlooked. The idea applies within the banking… Read More
Less than a year ago, China unveiled what it considered to be a younger and stronger statue of a bull to rival the one sitting on Wall Street in New York. The fact that it is also larger shows China’s ambition. With an… Read More
Whenever a stock takes a major hit, I like to wait a few days before assessing the wreckage. It gives time to let the issues clarify and provides a chance to see where shares end up once investors have finished selling. After plunging from $64… Read More
The life cycle of a company follows four distinct steps. The last two are maturity and decline, and both are generally not the stages when you want to invest. The first is introduction and covers the period when a company is in its start-up phase and progresses to introducing some… Read More
If you’re the CEO of a large corporation, you do not want to see your company’s name in this article. The companies in this article stumbled — badly — in the past year and have seen their shares prices fall by half — or… Read More
In my recent article The Perfect Way to Short Nuclear Power Stocks, I describe how the nuclear crisis in Japan is negatively impacting nuclear power companies worldwide, providing potentially profitable trading opportunities. However, another way to profit from the ongoing nuclear crisis is to invest in… Read More
With a rising economy comes rising expectations. CEOs at mid-sized and large companies need to find new paths to growth to justify — or boost — their company’s stock price. That’s no mean feat in an economy still in slow-growth mode. As a… Read More