Daily Posts Archive
Everyone knows Warren Buffett. As the dean of value investing in the U.S, the Chairman and CEO of Berkshire Hathaway (BRK-B) draws thousands of people to his annual meetings in Omaha. As the world’s greatest investor, Warren Buffett seemingly has it all. But there’s one major advantage you have over the Oracle of Omaha.
Investing isn’t all about buying when the market is hot. For the following three reasons, bad markets have their benefits too. (I’m a growth investor, which is a decision I only came to after I started working at Cabot, so these reasons apply to growth investing.)
Low-priced stocks can seem more enticing than high-priced stocks. But price per share is just a random number, and you shouldn’t let it scare you out of a good investment.
Many of the emails and phone calls I field these days involve some sort of avoidable error on the part of the subscriber that’s cost him money. So this week I’m writing about the 10 biggest mistakes investors make … and, of course, how to avoid making them.
Divorcing one’s personal beliefs from a company’s products and its stock can be extremely challenging. However, a look at the stock’s performance and options trading can go a long way to helping investors avoid their personal biases.
Burger stocks exploded last year. It started with the IPO of Shake Shack (SHAK) in January, an offering that was priced at 21, but began trading at 47. It was fueled by lots of hype about trendy private chains, like Five Guys, In-N-Out Burger, Whataburger, Umami Burger and Iron Chef Bobby Flay’s Bobby’s Burger Palace.
McKinsey & Company is a big consulting firm—9,000 consultants and 2,000 researchers around the world—that companies hire when they need advice. I get research reports from McKinsey every once in a while, and they’re usually beautifully designed, well written and interesting in an abstract kind of way. The report that reached my email in-box on Thursday had the intriguing title: “Why investors may need to lower their sights.” (Note how the avoidance of Capital Letters makes things a little edgier; that’s the McKinsey Difference!) It took seven people to write this little piece of analysis, so you know it must contain really valuable information.
Everybody (including me) loves Warren Buffett. He’s rich. He’s a major philanthropist who actively exhorts other rich people to give away their money. And he looks like an ideal grandfather ought to look: gray, smiling and enjoying life. But I do think Warren Buffett has a little bit of a regret, and it’s this ...