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Alex Morris

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  • 10 Dividend Stocks That Are Still Undervalued [View article]
    Didn't most of those giant retailers fall because of Wal-Mart? If so, who will come in and pull the chair out from under WMT? Interested to hear your thoughts.
    Jan 6 09:41 AM | 11 Likes Like |Link to Comment
  • Buffett's Recent Portfolio Changes: What's the Message? [View article]
    From opening paragraph: "Now, I do not recommend following him since he has billions and ‘he’ can afford to hold stocks forever because it is in his corporate account, which means he really isn’t risking his own money." Just to inform the author of this piece, Warren Buffett holds roughly 99% of his wealth in Berkshire Hathaway, so to suggest that he isn't risking his own money is absolutely untrue.
    Aug 16 09:11 AM | 11 Likes Like |Link to Comment
  • McDonald's: A Sell, Or On Sale? [View article]
    "The street has been worried that McDonald's has saturated global markets and therefore will have trouble growing in the future." Anytime I hear a comment like this in the media, it makes me think of Roberto Goizueta (former Coca-Cola CEO in the 1980's). He used to have an article that he showed analysts when the inevitable question of "how much longer will it last" came up. It read:

    "Several times every year a weighty and serious investor looks long and with a profound respect at Coca-Cola's record but comes regretfully to the conclusion that he is looking too late".

    That quote, as Goizueta would proudly point out, was from an article in Fortune Magazine - written in December of 1938.

    The end is always near. The solution: Invest in companies that stick with innovation to meet consumer demand, but also hold significant market share in slow changing industries.

    Alex Morris
    Jan 7 09:33 AM | 10 Likes Like |Link to Comment
  • Buffett May Not Pay Dividends, But He Sure Likes Them [View article]
    Good article David. And great quote from Charlie Munger - “Investing is where you find a few great companies and then sit on your ass."
    Sep 2 09:03 AM | 10 Likes Like |Link to Comment
  • Don't Get Sold on Buy and Hold [View article]
    How about if instead of Mattel you bought Coca-Cola 40 years ago? Or Wal-Mart? How about PepsiCo? Or Berkshire Hathaway? Those investments have made investors rich, all while avoiding those taxes that you have to pay every time you sell a stock for a 3% after owning it for a couple days.

    If you bought Coca-Cola or Pepsico 25 years ago, your annual dividend payments today are worth more than your original investment. The thing is, when you buy great companies, you can hold them for a long, long time and watch the company grow. The stock price will eventually follow. In the words of Ben Graham, "In the short run, the stock market is a voting machine, but in the long run, it's a weighing machine."

    As you said, "With regard to Sirius XM (SIRI), it is time to start formulating a specific game plan... In short order, the stock can spike to anywhere from $1.25 to 1.50." In short order, it can also go down too, like it has done consistently since 2004 (87% since December 2004). But they only lost $340 million last year compared to $5 billion in 2008, so things must be looking up; and that $3.1 billion in LTD? Not a big concern, we've got a good candlestick formation forming (that's what it is called, right?). Too bad the chart doesn't know anything about business or investing.

    Alex Morris
    Jul 27 02:32 PM | 10 Likes Like |Link to Comment
  • Goldman's 10 Stocks for Dividend Growth [View article]
    Goldman analysts are getting paid to plug numbers into a stock screener? If this is where things are headed, I highly recommend inexperienced investors cut a couple percentage points a year in expenses and just buy an index fund. Or at least invest in companies that you know about and understand, not ones like KLA-Tencor (after having read the company description three times, I'm still trying to figure out what they do).

    When the market takes a plunge and you own Coca-Cola, an intelligent investor would happily accept the opportunity to build a bigger stake in the world's strongest brand name for only 12-15x earnings. With KLA-Tencor, you are wondering "what the heck is HBLED manufacturing and why did I invest in it?". Invest in what you know so you can be greedy when others (for example, people who own companies they know nothing about) are fearful.

    Alex Morris
    Sep 23 09:42 AM | 8 Likes Like |Link to Comment
  • Warren Buffett in His Own Words: 23 Timeless Quotes on Investing [View article]
    "All there is to investing is picking good stocks at good times and staying with them as long as they remain good companies." Genius in simplicity.

    Alex Morris
    Dec 2 09:18 AM | 7 Likes Like |Link to Comment
  • Buffett: Why Own Bonds When You Can Own Equities? [View article]
    Buying pieces of great businesses when they are selling at good prices; sounds like something he might have said once or twice before...

    Alex Morris
    Oct 6 12:22 PM | 7 Likes Like |Link to Comment
  • Berkshire Emerges From Recession With Sharply Higher Operating Profits [View article]
    "Unfortunately, for many market participants, short term is a few hours or overnight, long term is holding a position over a weekend, and a quarter is an eternity." Great analysis as usual Ravi.

    Alex Morris
    Aug 8 09:42 PM | 7 Likes Like |Link to Comment
  • Sam Stovall: Market Volatility Here to Stay for the Near Term [View article]

    Didn't mean to come of as enraged if I did, sorry about that. It is hard to express emphasis through type, comes off sounding differently than the one I meant it. In regards to your comments, I really don't see myself as a value investor. Obviously I search for value, but I have no issue with buying a great company with a sustainable competitive advantage and solid management if it is fairly priced. Where Buffett has said that he is 15% Fisher and 85% Graham, I think I am the exact opposite. With a 20,30, or 50 year time horizon, I am happy buying PEP at these prices. Your argument is absolutely correct, and I would love to buy PEP at $50. I have cash waiting for this if the opportunity arises. In the case that it doesn't, I am also happy with my current position.

    Alex Morris
    Jul 28 12:13 PM | 7 Likes Like |Link to Comment
  • Warren Buffett stood firmly behind Goldman Sachs (GS) at Berkshire's (BRK.A) annual meeting today, saying he doesn't believe Goldman acted improperly and that the deal in question involved sophisticated investors who should be held accountable for their own bad decisions.  [View news story]
    Warren Buffett clearly defended his position, and brought up a good point: ACA Management is responsible for calculating the risk on any future investments that they make, not Goldman Sachs. At the end of the day, ACA is liable for their own due diligence (or lack there of), regardless of who is on the other side of the wager.

    Alex Morris
    May 1 07:12 PM | 7 Likes Like |Link to Comment
  • BYD: Not Looking Like One of Buffett's Better Investments [View article]
    I'll definitely take a few "failures" like this one!
    Oct 29 09:06 AM | 6 Likes Like |Link to Comment
  • Six Companies With 20% Yields on Cost [View article]
    Yield on cost is an EXTREMELY important concept for beginning dividend investors to understand. As noted in the article, it isn't about just finding the company with the highest yield; you want to find the great companies that will keep growing the dividend year after year. As noted by the examples in this article, buying and holding great companies provides yet another advantage that short term traders rarely discuss when talking about dividends: yield on cost. As always, great piece Dividend Growth Investor.

    Alex Morris
    Sep 16 11:45 AM | 6 Likes Like |Link to Comment
  • Sam Stovall: Market Volatility Here to Stay for the Near Term [View article]
    "That is the question, are they ulta cheap? You apparently think so." That's the thing: I DON'T. I think they are fairly valued. But I actually have a ten year holding period. I'm not just saying that like a lot of people do. So buying PEP at 65 or 60 makes little difference to me. Would I like to buy it lower? Obviously. Will I cost average down if I get the chance? For sure. And will I eventually run out of money to do that if I drops 50%? Of course. But I am not buying PEP at 60 to sell at 70. I am buying because I want to be invested in that company for at least 10+ years.

    Alex Morris
    Jul 28 10:46 AM | 6 Likes Like |Link to Comment
  • Sam Stovall: Market Volatility Here to Stay for the Near Term [View article]
    At that point I would buy more. I'm investing in great companies that are very financially sound and will make it through the recession without fear of permanent loss of capital. I can deal with short term volatility and pick up shares at these cheaper prices; I am looking to hold for ten years or longer, so I am not too concerned with if the stock goes down 10-15% over the next couple months. I'll buy what I can as cheap as I can and then sit back and wait.

    Alex Morris
    Jul 28 01:56 AM | 6 Likes Like |Link to Comment