Value Investing

Although it doesn’t make for a very interesting story, providing replacement parts for consumers can be just as profitable as unlocking the creative innovation that launches a new industry. Case in point: Cooper Tire & Rubber (NYSE: CTB). This company makes replacement tires for cars and trucks. It is the… Read More

For as long as I can remember, I have always questioned the status quo and the established way of looking at things.#-ad_banner-# If the majority is doing one thing, then it’s my natural state to think the opposite. But as you likely know, a contrarian attitude isn’t generally perceived in a positive way. But I was happy to find out I’m not alone in the investment world. Many successful investors are contrarians by nature. In fact, being an investment contrarian… Read More

For as long as I can remember, I have always questioned the status quo and the established way of looking at things.#-ad_banner-# If the majority is doing one thing, then it’s my natural state to think the opposite. But as you likely know, a contrarian attitude isn’t generally perceived in a positive way. But I was happy to find out I’m not alone in the investment world. Many successful investors are contrarians by nature. In fact, being an investment contrarian can provide a huge edge. This is because the majority of investors is often wrong. Once the crowd gets excited about a particular stock, investment or tactic, it’s often a signal to do the opposite. The stock market has an uncanny knack for attracting the most possible money into an idea or stock right before a sharp change in direction causes many to take a loss. And one way I… Read More

Historically, the Christmas season has been a bullish time for stocks. However, analysts who projected 3-4% growth in retail sales during the months leading up to Christmas failed to consider the negative effect Fiscal Fliff fears would… Read More

I’ll never forget seeing my first office supply superstore while in college. While searching frantically for a typewriter ribbon on the eve of a critical paper being due, my roommate advised that a new office supply store had recently opened up just miles from our dorm.  Quickly heading there, I was shocked at the size of the store and variety of office supplies available. I was able to purchase the typewriter ribbon a great price but thought to myself, “There’s no way this concept will last, these guys will be out of business… Read More

I’ll never forget seeing my first office supply superstore while in college. While searching frantically for a typewriter ribbon on the eve of a critical paper being due, my roommate advised that a new office supply store had recently opened up just miles from our dorm.  Quickly heading there, I was shocked at the size of the store and variety of office supplies available. I was able to purchase the typewriter ribbon a great price but thought to myself, “There’s no way this concept will last, these guys will be out of business soon.” I reasoned that the market for office supplies could not possibly be large enough to support the overhead and infrastructure of that giant store.#-ad_banner-# Boy, was I wrong.  This company has expanded to a global scale with nearly 2,300 locations and $25 billion in annual revenue. Not only did this visionary company nail the rising demand for corporate office supplies, but it also was perfectly positioned to benefit from the boom in home-based businesses across the globe. … Read More

Value investors look for stocks that offer low risk. The idea is to buy a stock at a price level that should be near a low as measured by the fundamentals. Some value investors look for stocks with sound business models… Read More