February 8, 2012

Note to Washington: You Cannot Separate Human Psychology from Economics

Predictably Irrational Book

The Huffington Post is talking about Obama's handling of the economy and the world view of his economic advisers now that Larry Summers is resigning. Those policies -- the bailout of Detroit automakers, an $814 billion stimulus package, subsequent programs under TARP, Cash for Clunkers and the administration's unlimited backstop of Fannie Mae and Freddie Mac -- arguably saved an economy that many considered to be on the verge of collapse. But while the recession officially ended last year, … [Read more...]

Why the iPhone Will Continue to Dominate the Smart Phone Market Even if It Doesn’t Have the Biggest Screen or Fastest Processor

iPhone Versus Other Smart Phones

It All Comes Down to the Existing Investment Consumers Have Made in their iTunes Library of Music, Movies, Games, Apps, and Television Shows It seems that a handful of tech folks and business bloggers - and, in fact, even my own brother - don't seem to understand that the reason people choose the iPhone over other smart phones, even if those other smart phones have bigger screens, more memory, and non-restricted applications, is because tens of millions of consumers now have a vested … [Read more...]

You Have to Focus on Valuation Metrics in the Stock Market!

Stock Valuation Techniques

As an Apple, Inc. lover (and someone who spends tens of thousands of dollars a year on hardware and software from Apple for headquarters), I am incredibly excited about what Steve and his team have accomplished.  The results for Apple investors have been remarkable.  Here is the actual quote from a news story today: When Steve Jobs assumed the CEO position at Apple on July 9, 1997 Apple shares cost $3.42 and the company had a market cap of around $3 billion. This week Apple shares hit … [Read more...]

PPL Corporation Stock Risk Analysis

XLU components

This is a risk analysis of PPL Corporation stock for a friend of mine that was hired by the company.  Those of you who want to know how I think about risk management are perfectly welcome to read it but it is specifically targeted so I'm not sure how useful you'll find it. I've worked my way through a few hundred pages of the PPL 10K report and I already reached several conclusions. Here are my thoughts. Take them for what they are worth. They are most certainly not recommendations, just … [Read more...]

How to Find Investment Ideas

Wal-Mart Stores Stock Certificate

Years ago, I wrote an article called Finding Investment Ideas for Your Portfolio for About.com, a division of The New York Times.  I've been thinking for the past few days about how it is that I seem to come across so many opportunities and then I realized that most people like me are always looking whereas the average American isn't. By that, I mean that every time I walk into a business, without exception, the first thought that occurs to me as I look around is, "I wonder if this company … [Read more...]

Value Investing vs. Growth Investing

Pennsylvania railroad stock certificate

As you become a better and more experienced investor, you may hear a lot about value investing versus growth investing.  The true professionals know, in the words of Warren Buffett, that value investing and growth investing are joined at the hip because all investing in value investing.  The growth rate of a company is a fundamental part of the process when valuing a stock or business and in some cases, adds to the value, in other cases, detracts from it. What People Mean When They Discuss … [Read more...]

Mistwalker Studios Might Just Eclipse Square Enix

floppy_dsk_icon

For a long time, I wanted to be a video game programmer.  When I was still in elementary school, I saved up the $200 or so dollars for an entry-level version of Microsoft Visual Basic, went to trade shows to buy software on 5"+ floppy disks, and worked on creating my own version of the original Legend of Zelda in Microsoft Basic.  At some point, however, my obsession with finance overcame everything and the idea of sitting in a skyscraper, reading stock reports, and compounding money for the … [Read more...]