John McCoy

John McCoy
Contributor since: 2012
Company: JMac Investors
I agree Frank. Mr Market is throwing a tantrum, and I say who cares. Use this opportunity to go long on quality. NKE, SBUX, MMM, BRK-B and MKL is what I'm buying, and if they get cheaper, so much the better.
Oh, I don't know. The .20 cent annual dividend is actually a solid 2.25% yield on my $8 and change cost. Not great for a bank, but not terrible either. I expect a nice dividend increase this year along with increased buybacks - if they can get the capital plan together ok, of course.
Interesting article Dana, but I'm not going to short BRK any time soon. In fact, I'm buying more right now.
Oh, I missed that one. Thank you!
Thanks for the great article Chris. I've been looking at this opportunity and agree with your assessment - reasonable return opportunity with fairly low downside risk.
Have you considered writing an article on the ANTM / CI merger opportunity? Larger potential return albeit with higher risk. I'd love to hear your take on that.
Thanks again!
There were several reports, including here on SA, that Buffet had closed out his PSX stake. I believe these reports were incorrectly based on the fact that the position was not reported on their 13F quarterly filing. It did not appear on the filing because it was withheld pending his building the position, but several "news" sources incorrectly assumed it was not disclosed because he had sold the stake.
http://tinyurl.com/o2p...
"The Federal Government hates banks."
The Federal Government does not hate banks. The current administration hates banks, and they're going away next year. Whoever the new administration is, Democrat or Republican, they will be a vast improvement over the current regime. Long BAC and would be buying more here if I wasn't already overweight the position.
Great article Ibex, thank you. I've long subscribed to the concentrated portfolio theory and currently have 75% of my personal portfolio in BAC, JPM, BRK-B and MKL, and the results have been tremendous. Having the patience to wait until the right buying opportunity comes along, combined with the ability to ignore volatility and even add shares when the blood hits the streets is crucial, but will lead to stellar long term results.
Thanks again for the article, you've got a new follower.
"Bank of America is likely to put shareholders to a vote this year to decide whether CEO Brian Moynihan keeps his title as chairman of the board."
Haven't we done this once already in 2009? It makes no difference if it's Lewis or Moynihan, the CEO and Chairman role need to be separate, with only very rare exceptions such as Berkshire Hathaway. SMH.
Long MKL is the place to be. MKL and BRK-B are my two biggest holdings. Lots of value right now in financials, especially the big Canadian banks (BMO, BNS and TD). Rails (NSC, UNP, ARII), large cap and mid-steam energy MLPs (XOM, CVS, BP, EPD) and REITs (O, HCP, VTR) are all down too. You'll never regret buying quality while it's on sale. Nice write up, thanks.
They're not "spending" anything, they're lending, which is what banks do.
Bailout? Berkshire? I can't believe people are still spewing this nonsense 7 years later.
Don't forget Tom Gayner at Markel. Solidly profitable insurance business, small but growing Markel Ventures, and a great investment manager like Gayner make MKL one of the best long term investments going. Long both MKL and BRK-B.
Interesting. I was not aware that he still lived in Boston. He must have a place in Charlotte too. He can certainly afford one.
Jackooo, I can think of three letters that should replace those three Os. :)
Yup, time to bury the mason jars in the garden, lol.
Yep, the one thing you can always count on is that there are millions of idiots willing to overspend for something they consider to be a trendy status symbol. I love SBUX as an investment, but I don't like their coffee, and wouldn't over pay for it even if I did. DNKN works for me coffee wise.
The new Kraft Heinz Co will be a true powerhouse food company moving forward, especially if 3G and Berkshire continue to use it as an acquisition vehicle. Aggressive cost cutting at Kraft, taking advantage of Heinz international distribution system, and future strategic acquisitions should lead to growth and improved top and bottom lines.
It would appear that they're planning the same with QSR. First BK, then Tim Hortons, who next? Bring them into the fold, lean 'em and clean 'em up, repeat.
Is anyone else seeing a pattern? Perhaps BUD & Pepsi next?
And they didn't need dime one of it. They were forced to take it along with several other banks that didn't need it (think JPM, USB, BK, STT, AXP, etc). These banks were not given any choice in the matter. Many of them actually wanted to return the TARP money as soon as possible and were again told no for several years.
Outstanding article Eric, and I agree 100% that SO belongs at the very top of any utility stock ranking. I consider it fairly valued right now, and though I usually prefer to wait for a little more margin of safety, it's 5 plus % yield and strong record of dividend increases make now a great opportunity to get long the stock while there's a little blood in the street on the name. An excellent choice for any long term/dividend income investors portfolio.
I am long SO and will add on further weakness (rising interest rate environment?) I'll also be taking a closer looks at some of the other names on your list that I am less familiar with. Thanks again!
Bob, the ACA was damage enough.
No mention of WFC at all? I'm long BAC and JPM and looking closely at WFC and TD.
Another great article Tim. What are you're thoughts on the possibility of OKE making the same sort of roll up of OKS? Thanks.
Maybe OKE/OKS will be next.
I disagree. While it is the regulators responsibility to help stop trading on erroneous information like this, it is ultimately the responsibility of the investor to verify what it is they're buying BEFORE they buy it. Anyone who ran out and purchased shares in RIVT without first performing proper due diligence deserves exactly what they get.
Why not? As Buffett says, "If you liked it enough to buy it at $10, you should love it at $5."
I added a few OKS shares yesterday and will continue to do so in small amounts on continued weakness.
Markel is an amazing company. I am long MKL and BRK-B, and am seriously considering selling everything else I own and splitting it between these two stocks.
Really? I'm long BAC and JPM and have made a small fortune on both.
A whole three months? Three month performance is not what you should judge any stock on, let alone BRK-B. Have you happened to notice what BRKs long term performance is versus the S&P? Like over the last 40 years?
David, I agree 100% and share your exasperation with the majority who don't. The only two times a stock price matters is the day you buy it and the day you sell it, and the noise in between means nothing.
Jackooo, 10 cents per quarter would be 4.7% yield on my $8.46 cost basis, so yes, that would be just fine with me, and I'm sure a lot of the other BAC longs too.
No, they do need to resubmit their capital plan to the Fed by Sept, but they were allowed to implement their capital return program ($4B buyback) beginning Q2 2015.