Investing and Global Finance News

Tag Archives: Stocks

Warren Buffet on Value and Quality Stocks

Warren Buffett, arguably the most famous “value investor”, recently discussed high quality stocks.

In a letter to shareholders, he explained how Charlie Munger taught him the true meaning of value:

“More than 50 years ago, Charlie told me that it was far better to buy a wonderful business at a fair price than to buy a fair business at a wonderful price. Despite the compelling logic of his position, I have sometimes reverted to my old habit of bargain-hunting, with results ranging from tolerable to terrible. Fortunately, my mistakes have usually occurred when I made smaller purchases. Our large acquisitions have generally worked out well and, in a few cases, more than well.”

This lesson is confirmed by Jason Zweig, who recently wrote a good column in the Wall Street Journal:

“Research can be published soon in the prestigious Journal of Financial Economics by Robert Novy-Marx, a finance professor at the University of Rochester, shows that bargain priced “quality” stocks outperformed the overall market by more than four percentage points annually between 1963 and 2011. This stunning margin is even higher than that earned over the same period traditionally measured cheap “value” stocks, but usually with less severe losses in market downturns. Quality also tends to do well when value does poorly, and vice versa.”

Investing and Buying Stocks Today: Bruce Bittle and Jim Paulson

Wall Street recently posted six weeks of gains, encouraging a break amongst investors. The S&P has slid as a result. Chief investment strategist Bruce Bittles recently discussed the situation in an interview. He explained: “Following six straight weeks of gains for the S&P 500 and Dow industrials, stocks enter the new week in an overbought… Continue Reading

Market Reverses

Moments ago the Dow reverses course and goes negative.  Investors are continuing their sell off after Ben Bernanke announced that rates would remain unchanged through 2013.  Investors have been on edge since the S&P has downgraded the US on Friday.  Yesterday’s 6.66% drop was the 12 largest drop since WW2. Economy the Real Factor Many… Continue Reading

Investment Portfolio Assets

There are various different types of investment portfolio assets, including:  bonds; future contracts; gold certificates; real estate; stocks and warrants.  An investor makes a credit to an institution (a bond); one uses a future contract for the purchase or sale of an “underlying instrument” at a set rate but the date is not set for… Continue Reading

What Are Stocks?

Stocks are not very difficult to understand, even for the uninitiated financial layman. Basically, an organization will sell stocks so that they can increase their revenue which will be used for their business. So if you buy stocks, you are helping out a business (and hopefully yourself as when the stocks increase, so will your… Continue Reading

FTSE, Oil Prices and Libya’s Crisis

Oil prices rose; Britain’s benchmark stock index plummeted as Muammar Gaddafi “tightened his grip on Tripoli,” yet failing to exert that control over eastern Libya.  The premier’s loyal security forces allegedly forced protestors out of the capital’s streets which was undergoing major chaos as close to 300 civilians have been killed according to a Human… Continue Reading