J. B. Wulff

Has Buffett Lost His Mind?

I didn't read all the comments, so someone may have passed this along. The old Great Northern RR was built by James J. Hill. He was very careful and insisted on doing it right the first time. He always focused on not allowing the grades his trains would have to deal with to become too steep. This gave him a more efficient system from day one. You can't take that benefit away from a railroad, so it still pays off today. Ton miles have to be somewhat cheaper on the old Great Northern routes.

Supply Side for Copper: A Game Changer in 2010?

If you don't own FCX, always keep an eye on it. The folks who run this are quite simply superb in their execution over decades. I must confess that I recently was guilty of selling too soon. I made a bit, but missed a lot. Done it before, may do it again. I never stop watching. I have the princely holding of 14 shares from 1995. That's a dig at myself. When I first bought in, it was a sulfur business.

Market Memory: An Abbreviated Tale Of Two Bottoms (Part 1)

Even the best horse has to stop for water once in awhile. The market is an indicator of far too many things to ever enable a reliable prediction. Still, as an indicator it has historic value. We have seen a crash not unlike the Great Depresson event. Governments have stepped in more boldly in their attempts to stabilize the global economy. The DJI did not return to the 1929 peak level until after WWII! That had to include some inflation. I cannot believe that the market's historic rising trend has resumed without corrections. According to an item floating around the net called IOUSA, our country's real deficit is some $57 Trillion. That's adding up Social Security and everything else that is an unfunded liability. The prudent investor will be careful. The age old wisdom is, "The market will fluctuate."

5 Dividend Stocks that Beat Money Market Accounts and CDs

If these stocks were enrolled in a Dividend Reinvestment Plan, there would be compounded growth and a much greater overall yield. DRP's remain a superb method for growing your portfolio painlessly.

Understanding Antigenics' Private Placement

It may well be time to buy some more. I've been in it forever almost. Had 1500 shares some of which cost me $14.00 each. I now hold 100 and expect a move to $125.00 might give me a gain. They have been dipping into this special "tide us over" game for a long time. This will have to be BIG when it comes.

Why I'm Long General Electric

I'm in there holding for long term as well. After Welch left, the rules were changed on "managed earnings." Barron's regulalrly demonstrated how Jack manipulated events so as to show rising profits. Now that is a no-no. Go figure. Their entertainment section is a problem, but things like SNL, The Tonight Show, Meet The Press, etc. have a world wide audience. With a little luck they can offer a few more hot series. How any CSI's can anyone stand?

Holman Jenkins's Errors, Part 1

Nicely done. I continue to believe that the biggest culprits in this mess are the rating agencies. They worked with the creators and annointed the securities with triple A ratings. Early in 2007 they began to discover their error and changed the ratings. The "Bear" took the first big hit and we all know what followed. When will this group get hit with lawsuits based on the losses suffered by those who trusted their ratings?

GE Sum of Parts Valuation: Why I'm Skittish on This Stock

Establishing a "value" for any company in the current environment is dicey at best. It is true that since Welch retired, GE has been all down hill. Did anybody notice that the game has changed? I've been reading Barron's for nearly five decades. During Welch's time at the helm of GE, Barron's regularly cited that earnings were "manipulated" to make things look good. Since Jack retired, manipulating earnings has become illegal and many firms have gotten into trouble over it. That being said, what is GE worth? The finance arm is a game in progress. GE has managed to get some additional capital from Buffet and the market. Warren is being well paid for his piece. Jet engines, power plants, MRI's, and a host of other products in GE's product line are well focused and will do well in any reasonable future for the world. I own GE and I expect to do well with it! Ge is no GM. We need to remember that.

Populist Pandering Won't Solve Crisis - Less Regulation Will

One of the better reviews I've seen. The idiots in Congress who rise to committee chairman based on senority does prove the Peter Principle. Chris Dodd and Barney Frank are poster boys for this. "Too big to fail" also messes things up. Enforcement of the laws, regulation, etc. is also overdue. We don't need more of them. Mocking business leaders on TV for the dolts back home is also sad. A quarter of one billion dollars was spent by the campaign and inaugaration of Obama, all for a job that pays less than a million a year unless you include the house and the plane. Business leaders should journey to Congressional hearings via Amtrak rather than corporate jets? There is some value to their time and company planes display that value. If it's all about expense of travel, perhaps all, including Congress members should hitchhike. Hawaii's could use a row boat.

Freeport-McMoran on Copper and China

Freeport has been a favorite stock of mine for decades. It has some sharp people who take advantage of opportunities and shut down failures quickly. I believe it is a stock to buy and hold, now more than ever.

The Blue Chip Myth

Who remembers the old "one decision" stocks? The market is ever the conundrum. It is always the same. It is always different. It runs in cycles and only the sure footed survive, some far better than others. There will always be Blue Chips. Only the names will change. Steam locomotives for the railroads were done in by diesels from GM. And the beat goes on...

UAW Pricing Itself Out of the Auto Market

The UAW is so out of touch with reality while sadly in touch with politics. It's the only one at the table that won't do anything to help. The only way to get around them is via bankruptcy! Then the UAW will be forced to accept a more reasonable wage. Sadly, I'm afraid President Bush is going to reward their stubbornness.

A Modest Proposal For The U.S. Auto Industry: Stop Building Cars

There is more than enough blame to lay on government, unions, management, etc. The blame game never solves the problem. It just crucifies someone. The only way to solve the automobile problem is bankruptcy. The steel industry has gone through it. The airlines have gone through it twice. It's messy and it hurts. Many good people will have their lives messed up, but until everything gets "marked to market" in the auto industry there is no hope of a lasting solution. The horror stories of three million unemployed people if we go this way strains credibility. Car dealerships will close in some cases as they have been doing for years. People will still be buying cars. Successful dealerships will align with other vendors or hook up with whatever gets salvaged from the current jumble. In its better years, GM had a well organized offering of five lines of cars designed to meet the needs of various income segments of the buying public. Chevrolet was your entry level and Cadillac was the top. I expect that the current mishmash of models and features was the result of internal turf wars and the lack of solid leadership at the top. The contracts and benefits that are dragging the whole industry down came about in the huge post war boom. The industry was a gravy train and nobody thought about tomorrow. Packard, Studebaker, Nash, Hudson, Kaiser, Frazer, and Henry J vanished from the American road when they could no longer compete. The mourning period for them was not all that long. Henry Ford was the genius who mass produced an inexpensive car and raised the wages he paid his workers so that they could afford to buy them. American ingenuity has never let us down in the past and it won't now. Let's give it a real chance by having a banruptcy driven fire sale of the big three! We will be amazed what comes out the other side.

Wall Street Breakfast: Must-Know News

By "bailing out" first the "Bear" and then the "Mac's" our dear, somewhat panic striken government is doing its best to avoid a financial collapse like 1929. Sadly, the financial people on Wall Street want to become addicted to the Washington printing press - the one that makes money out of thin air - instead of stepping up to the plate and working together to fix this mess. We need a repeat of the probably mythical banker who was able to stem a run on his bank by visibly wheeling a wheelbarrow full of money into the bank through the front door, repeatedly. It was always the same wheelbarrow. He went out the back door, circled around and came in again and again. The panic ended for his bank and it survived. Congress is no help whatsoever. Frank & Rangle are living proof of the Peter Principle. Our much maligned President, nervous about his legacy, does not want to be Hoover II. The titans of Wall Street need to simply announce that they believe Lehman Brothers will survive and that they will continue to trade with the firm and stand ready to help if necessary, period. Then the game will be over and the players will have to close out their bets/positions the best they can. Still, giving up cocaine is not easy.

Year to Date Performance of Dow 30 Members

Long term investments in JNJ and XOM among others are especially rewarding when the dividend is considered. Currently my JNJ is yielding 8% and XOM is 6.5%. They are both in dividend reinvesting plans so my holdings are growing at that rate. What's not to like?