Invest Like A Rounder: Don't Give Anything Away [View article]
He's certainly managed to bluff analysts and investors with his vision that Amazon has a great business model, but I think he's got to keep throwing money into the pot to maintain their advantage in all the myriad businesses they want to be in.
Tesla Motors' Full Analysis, Its Only Mistake, Outlook And Elon Musk [View article]
A maglev space elevator? Sounds like an interesting concept that could put SpaceX out of business, although one of the hallmarks of innovative companies is that they're not afraid to cannibalize their own business, lest someone else come along and do so.
If I Could Buy Just One Stock, It Would Be This One [View article]
varan, not sure if you're referencing "Idiocracy" there but this argument does remind me of that scene where their only argument for watering crops with Gatorade is "but it has electrolytes" because they've been brainwashed by commercials, just like it sometimes seems investors have been conditioned to worship dividends.
A Golden Stock With A Golden Income [View article]
You mentioned that "Gold is not the main focus of revenue" and that "in 2010 gold made up 87% of total revenue and 12% was generated by copper" but what is the revenue mix now?
I'm seeing in the annual report that in 2012 gold was still 87% of revenues, so it certainly still seems to be the main, albeit not sole, source of revenue.
If I Could Buy Just One Stock, It Would Be This One [View article]
<picks mic back up> It comes from the 20% return that you could get by reinvesting the dollar back into the business rather than simply returning it to shareholders.
Tesla Motors' Full Analysis, Its Only Mistake, Outlook And Elon Musk [View article]
I admire Musk for his forward thinking, but some of his ideas are outlandish (Hyperloop?).
What makes you think he won't be too preoccupied by more interesting things like that and SpaceX to remain focused enough on Tesla, or do you think the company already has the critical mass to succeed without him?
If I Could Buy Just One Stock, It Would Be This One [View article]
I've had this argument so many times with brick walls like yourself, but I still enjoy a good debate so here goes on how price appreciation compounds over time:
A scrappy young insurance company called Hackshire Berthaway generates a dollar in earnings. Its intrepid CEO Baron Wuffett decides that the insurance business is a good one that can generate 20% returns on investment, so he reinvests the dollar in earnings and this turns into $1.20 in earnings the next year, then $1.44 the following year, and so on.
Investors like what they see, so they are willing to pay say 10 times earnings for the company, or $10, then $12, then $14.40. After 10 years, earnings are over $5/share and people are willing to pay 5 times more for the company than they were originally. Are they 5 times dumber or greedier? Of course not, the company is 5 times more valuable because it was able to harness the power of compounding the earnings of a good business over time.
If they had been paying a 10% dividend this whole time, there wouldn't have been any earnings left over to reinvest back into the business, so they wouldn't grow, much less compound. Sure, the number of shares you own would compound, but at a rate of 10% instead of the 20% rate without dividends, plus you'd be liable for taxes every year on the dividends, as opposed to letting it compound tax free by reinvesting back into the business.
3 Silver Stocks With Solid Yields And Upside Potential [View article]
Yeah, I did a quick back of the envelope calculation on what the total cash costs including the up-front payments would be and it came out surprisingly high at like $1200/ounce unless production increases, so I'd be curious to know if you've done any more detailed calculations.
Excellent article, I bought Roundy's when it got so cheap after the overreaction to the dividend cut and can't wait to own Mariano's outright when they spin it off in a few years.
3 Silver Stocks With Solid Yields And Upside Potential [View article]
SLW just opened a $2.5B line of credit, of which they've used $1.1B so far for the upfront cash payment on the gold interests from VALE, so they're no longer debt free, but still a great hedged play on silver in my opinion:
Obviously productive assets like KO are better long term investments than shiny stuff, but KO has to work harder to get more people to drink it every year, but governments around the world seem to be doing gold's work for it by printing money much faster than they can mine more gold.
If I Could Buy Just One Stock, It Would Be This One [View article]
Thanks for proving my point, PendragonY, a stock price is based on earnings and/or book value, both of which can compound faster if a company isn't paying out dividends.
If I Could Buy Just One Stock, It Would Be This One [View article]
http://bit.ly/xcBPQb
And for Pendragon, here's his explanation on why they don't pay dividends on page 18:
http://bit.ly/12hhKLf
Invest Like A Rounder: Don't Give Anything Away [View article]
Tesla Motors' Full Analysis, Its Only Mistake, Outlook And Elon Musk [View article]
If I Could Buy Just One Stock, It Would Be This One [View article]
A Golden Stock With A Golden Income [View article]
I'm seeing in the annual report that in 2012 gold was still 87% of revenues, so it certainly still seems to be the main, albeit not sole, source of revenue.
If I Could Buy Just One Stock, It Would Be This One [View article]
If I Could Buy Just One Stock, It Would Be This One [View article]
Tesla Motors' Full Analysis, Its Only Mistake, Outlook And Elon Musk [View article]
What makes you think he won't be too preoccupied by more interesting things like that and SpaceX to remain focused enough on Tesla, or do you think the company already has the critical mass to succeed without him?
It Is Not Different This Time - It Is Worse [View article]
C'mon Bret, put on those rose colored glasses that they make people wear before they go on CNBC.
If I Could Buy Just One Stock, It Would Be This One [View article]
A scrappy young insurance company called Hackshire Berthaway generates a dollar in earnings. Its intrepid CEO Baron Wuffett decides that the insurance business is a good one that can generate 20% returns on investment, so he reinvests the dollar in earnings and this turns into $1.20 in earnings the next year, then $1.44 the following year, and so on.
Investors like what they see, so they are willing to pay say 10 times earnings for the company, or $10, then $12, then $14.40. After 10 years, earnings are over $5/share and people are willing to pay 5 times more for the company than they were originally. Are they 5 times dumber or greedier? Of course not, the company is 5 times more valuable because it was able to harness the power of compounding the earnings of a good business over time.
If they had been paying a 10% dividend this whole time, there wouldn't have been any earnings left over to reinvest back into the business, so they wouldn't grow, much less compound. Sure, the number of shares you own would compound, but at a rate of 10% instead of the 20% rate without dividends, plus you'd be liable for taxes every year on the dividends, as opposed to letting it compound tax free by reinvesting back into the business.
3 Silver Stocks With Solid Yields And Upside Potential [View article]
Roundy's Hidden Gem [View article]
3 Silver Stocks With Solid Yields And Upside Potential [View article]
http://seekingalpha.co...
Gold Vs. Coca-Cola [View article]
If I Could Buy Just One Stock, It Would Be This One [View article]