When It Comes To Stocks, Trust Fundamentals - Not Forecasts
- Forecasts are everywhere in the stock market, but more often than not they are wrong.
- Trust a stock's fundamentals and financials - not forecasts - when analyzing equities.
- Here are five fundamentally and financially sound stocks that get high marks.
When It Comes To Investing, Don't Just Support Your Home Team
- While other parts of the world have been struggling, the US economy has been strong over the past year or two.
- That's led to US stocks outperforming international equities by a wide margin.
- While attractive US stocks remain, don't get scared away by foreign stocks, many of which are selling on the cheap.
Don't Let Your Brain Ruin Your Returns
- Every investor -- even Warren Buffett -- is going to make mistakes on some stock picks.
- The key to successful investing isn't being perfect on every pick -- it's keeping the right mindset so that you don't fall prey to dangerous emotions and biases.
- Here are a number of common behavioral pitfalls that hurt investors, and tips for how to overcome them.
America's New Industrial Revolution
- Once thought to be way past its prime, the US industrial sector is having a rebirth.
- Industrial production was up sharply in 2014.
- Industrials have outpaced the broader market since the start of the bull run, but bargains remain.
Who Should You Root For In The Growth Vs. Value Matchup?
- Many commentators often describe growth and value as an "either/or" dynamic.
- In reality, growth and value should work together in your investment strategy.
- Here are five stocks that currently look attractive based on their combination of growth and value characteristics.
Going Beyond Peter Lynch's 'Buy What You Know' Advice
- Mutual fund legend Peter Lynch once said that individuals could get good stock ideas by considering the products and companies they knew and liked.
- But Lynch also offered several other good tips to find attractive stocks that others might overlook.
- Here are a few of Lynch's tips, and, for each, a stock that currently fits the bill.
Save The Glamour And Glitz For Holiday Decorations -- Not Your Investment Portfolio
- Human beings are drawn to flash and glamour, but investing "glamour" stocks is often a recipe for failure.
- Buying unexciting value stocks has proven to be a more successful strategy over the long haul than buying flashy glamour picks.
- Value can be measured in numerous ways -- here's a look at how several different investing gurus assessed value.
How To Spot An 'Enduring Moat'
- The "enduring moat" concept is one of Warren Buffett's greatest contributions to the investing world.
- Buffett isn't the only one who has used a "moat"-like concept; gurus like Ken Fisher and Joel Greenblatt has embraced similar ideas.
- By looking at a firm's fundamentals, you can see evidence of moats in different ways.
The Best Stock Market Guru You've Never Heard Of
- Great investors come in all shapes and sizes.
- Joseph Piotroski isn't even a professional investor, but he developed an exceptional methodology for picking stocks that has beaten the market over the long haul.
- Piotroski used accounting-based metrics to separate financially sound high-book/market stocks from financially distressed high-book/market firms, and my Piotroski-inspired Guru Strategy does the same.
Why I'm Not Dumping Small-Caps
- Small-cap stocks got hit hard in the third quarter.
- But over the long haul, small-cap value stocks have far outperformed their peers.
- I see the recent declines as a buying opportunity for attractively valued small stocks, not a reason to avoid small caps.
Gurus Agree: Low-Debt Firms Make Good Investments
- Debt can be a useful tool, but over-reliance on it can land a company in hot water.
- The best investors of all-time looked carefully at a company's balance sheet and debt levels before investing in it.
- Here are five low-debt firms that get high scores from my Guru Strategies.
Swimming Upstream To Beat The Market
- History's most successful investors have beaten the market using a variety of strategies, but most tend to have a contrarian bent.
- Among these gurus, David Dreman is known as the Dean of the Contrarians. He found that investor psychology created opportunities for contrarian investors.
- Dreman targeted unloved stocks that had strong balance sheets and fundamentals, like these five.
Be Imperfect When You Pick Stocks
- Many investors think that great stock-pickers are right far more often than they are wrong.
- The truth is that making money on a little over half your picks usually leads to very strong returns.
- By accepting that you'll be wrong on a good amount of your picks, you don't panic when some picks miss the mark, letting you stick to a long-term plan.
The Truth Behind Stock Prices
- On a day-to-day basis, a myriad of factors drive stock returns.
- Over the long term, a couple factors stand out in terms of stock return drivers, however: dividends and inflation.
- Here are five picks that have solid dividends and the pricing power to keep up with inflation.
Greenblatt's Magic Formula: Quite Simple, But Far From Easy
- Joel Greenblatt's "Magic Formula" is one of the most elegant, simple investing approaches you'll find, using just two variables.
- But the trick with the Greenblatt approach is staying disciplined when the strategy underperforms -- that's the hard part.
- If you stick with it, the results show you can net some big gains.
Buy What You Know - But Do Your Homework, Too
- Mutual fund legend Peter Lynch said individual investors can "buy what they know" to get a leg up on professional investors.
- But Lynch also warned that you shouldn't buy stock in a firm just because you like its products; you also have to do thorough fundamental and financial analysis.
- Here are five stocks with popular products or services you probably know, and which also have strong fundamentals.
Buffett, Piotroski, And An Inflation-Beating Approach
- While inflation hasn't kicked in since the Federal Reserve started quantitative easing, some signs are that it's finally picking up.
- Warren Buffett years ago laid out a recipe for how companies can beat inflation.
- Buffett's recipe was quite similar to my Joseph Piotroski-based model's criteria, so the model should be a good place to look for inflation-beating stocks.
Skies Look Friendly Once Again For (Some) Airline Stocks
- Since being deregulated in the late 1970s, a myriad of bankruptcies has made the airline industry a dangerous place for investors.
- Some airlines have fared quite well in recent years, thanks to innovative thinking.
- Many airlines are still loaded up with debt, so you need to be selective in picking airline stocks.
Have The Market Jitters? Try Some Earnings All-Stars
- A number of factors have investors feeling jittery about the economy and stock market.
- Given how bad investors tend to be at market timing, jumping in and out of the market is very risky.
- If your fears are getting the best of you, consider focusing on some "all-weather" stocks rather than bailing on the market.
Five Retailers That Are Alive And Kicking
- The Federal Reserve's loose money policies have enabled many weak firms to stay alive longer than they should have.
- Retailers have been one of the big beneficiaries.
- With QE winding down, it's time to be very discriminating when buying shares of retailers.
For FutureFuel, The Future Is Now
- Small growth stocks have gotten hit hard this year, but FutureFuel has bucked the trend.
- The firm has been growing earnings and revenues at a stellar clip.
- Its strong balance sheet also earns it high marks from several of my guru-inspired models.
5 Stocks - Including Apple - With Moats To Keep The Competitors Out
- Warren Buffett says good businesses have "economic moats" that give them a durable advantage over competitors.
- Moats can include strong brand recognition, size that enables economies of scale, and high switching costs.
- Here are five "moat" stocks that get approval from my Guru Strategies.
Amid Weak Expectations, AGCO Looks Like A Strong Buy
- My Guru Strategies are triggering a Trade Alert on AGCO shares.
- The stock has struggled amid falling food commodity prices.
- But its fundamentals are strong, and it has been diversifying into emerging areas.
- With expectations low, it's a good time to buy.
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