General Electric (GE -1.2%) may look attractive on the surface, with its industrial and capital services units both poised for cyclical gains should the economy kick into gear. However, the mega-conglomerate is a unique financial-industrial hybrid, says Morgan Stanley's Nigel Coe, and if you back out GE Capital from the numbers, you'll find that both units are actually trading at a large premium to comps., and with a little pricing competition, the company could face serious headwinds. [View news story]
The financial crisis has revealed Jack Welch's stupidity in turning a champion industrial company into a GE Capital-dominated monstrosity. Until Immelt creates a more balanced company by divesting more of GE Capital, troubles emanating from the financial sector will continue to punch GE investors right in the gut.
Charlie Munger: Civilized People Don't Buy Gold [View article]
I own gold and a gold stock, and I agree with Munger. I own them not because I believe in gold's intrinsic value (it has little or none) or in gold's ability to store wealth (it doesn't). Instead, I believe that, for the foreseeable future, there will be ignorant/foolish/crazy people who will periodically bid gold prices up from absurd to ridiculous. Why not be along for the ride?
The President is speaking about his proposals to crack down on manipulation in the oil market. Watch live here. [View news story]
So regulating hydraulic fracturing is the same as a war on fossil fuels? I guess testing car seats would be a war on babies in your book.
The oil and gas industry praised the EO for gathering the disparate regulatory bodies under one roof, which would simplify regulations and reduce the red tape.
The President is speaking about his proposals to crack down on manipulation in the oil market. Watch live here. [View news story]
A war on fossil fuels? What planet are you living on? The U.S. produces more oil now than in 2003, and is producing more and more every day. We now import 45% of our oil as opposed to 57% in 2008 when Big Oil's best friend was in office.
Obama has voiced support for natural gas. If you want to blame somebody for the failure of the Natural Gas Act in the Senate, blame the 39 myopic Republicans who voted no and Big Oil, which stuffs their campaign coffers full of cash.
The President is speaking about his proposals to crack down on manipulation in the oil market. Watch live here. [View news story]
No one can reasonably claim that the current price of oil lies anywhere near the intersection of supply and demand. Rex Tillerson, CEO of ExxonMobil and hardly a socialist, has said many times that the price of oil should be much lower and that the elevated price is due to speculation. Saudi Arabia, the largest oil exporter, has repeatedly voiced similar sentiments. Something should be done to curb oil speculation, which only benefits investment banks.
Apple: Take Profits Before You Lose Them [View article]
I was severely tempted to sell AAPL (less than 10% of the total) yesterday. After seeing what happened in the premarket, I pulled the trigger. AAPL was pushing 20% of the portfolio, and as much as I love it, I had to sell some.
Internally debating whether to sell AAPL is a good problem to have.
Many large companies acquire and divest parts of their businesses, but for the frequency and size of its deals, Pfizer takes the cake. It must be disheartening to work as a scientist or researcher at Pfizer.
Is Germany Actually Preparing To Leave The Euro? [View article]
Germany would not hold fare much better. The combination of the new Deutsche Mark, which would instantly be one of the strongest currencies in the world, and the newly weak euro would choke Germany's export-based economy by dramatically reducing the purchasing power of its biggest trade partners. This damage would far outweigh any debt relief Germany would enjoy.
Trade With The Ultimate Insider (It's Perfectly Legal) [View article]
"Wide economic moat," "wonderful companies at fair prices" and the like become interpretive dance cliches because they have held true over the years. After all, what is more important to a company's survival and prosperity than significant and sustainable competitive advantages? Also, isn't buying a great stock at $75 better than buying it at $90?
That purchases of Wells Fargo, IBM, Visa piqued your interest says much about your skills as an investor and your understanding of the "interpretive dance cliches" you dismiss. These stocks are great under any style of analysis, and each fits perfectly with Buffett's investment philosophy. Wells Fargo is the financial institution Buffett knows best outside of Berkshire, and he already owns a hefty stake in the company. Wouldn't you buy a dip to add to an existing position you like? IBM is by far the biggest player in the high-margin, sticky business of consulting and analytics, almost guaranteeing strong cash flow and dividend growth. It is quickly becoming an indispensible part of the information-industrial complex, and its moat is wide and deep. Visa, a toll booth operator with no credit risk, might have the biggest moat of the three. One does not need any influence in Washington or "insight that only Warren Buffet brings to the table" to realize that these are great companies that were on sale.
As for BNSF, Buffett has had its eye on the company for a long time. By the time Berkshire acquired BNSF, Berkshire already owned over 20% of the company. Berkshire purchased this stake through 2007. Regardless of the timing of the final acquisition, what's so unusual about one company buying another company in which the first company owns a significant stake?
Buffett certainly does not need me or anyone else to defend him from the likes of you. He makes turds that are better investors than you. I commented because your article is full of innuendo and even more full of ignorance. Hopefully, you wrote it only as an enterprising attempt to generate hits, like the 10 tired Apple-bear articles that Seeking Alpha approves every day.
Jamie Dimon (JPM) continues to rail against over-regulation, telling Fox Business that policies coming out of Washington have led to a slower and rockier recovery: "It could have been better. I do think we have made this recovery slower and worse by uncoordinated policy, the debt ceiling crisis and tons of other things that were misguided." [View news story]
Dimon prefers the good old days of 1999-2007 when banks could do whatever they wanted.
A Cisco And Dell Strategy That Apple Should Avoid [View article]
You can't say that Chambers is overpaid--he had to have worked many hours a day to come up with all of Cisco's financial engineering schemes over the years. Too bad all of that work resulted in a horrible company and stock.
Dick Bove is furious over "the mortgage deal from hell" that provides $25B in relief for distressed borrowers, states and the U.S. government. "Those people lucky or smart enough to stop making payments on their homes may get their loan balances reduced," Bove fumes; headline risk for banks - particularly BAC - will continue since the DOJ is sketching up another lawsuit over securitization irregularities. [View news story]
Dick Bove has repeatedly shown through his unintentionally hilarious appearances and comments that he knows less than shit about banks. Analyst indeed.
CNBC's Mark Koba steps inside Ron Paul's fantasy of world of a world without a Fed and doesn't paint a pretty picture. A return to the gold standard, as Paul wants, would leave the dollar hostage to the whims of traders. Or, letting the Treasury manage the money supply would cause an "earthquake over who would be Treasury Secretary." [View news story]
Paul only wants the gold standard because he is heavily invested in gold and gold miners.
General Electric (GE -1.2%) may look attractive on the surface, with its industrial and capital services units both poised for cyclical gains should the economy kick into gear. However, the mega-conglomerate is a unique financial-industrial hybrid, says Morgan Stanley's Nigel Coe, and if you back out GE Capital from the numbers, you'll find that both units are actually trading at a large premium to comps., and with a little pricing competition, the company could face serious headwinds. [View news story]
Charlie Munger: Civilized People Don't Buy Gold [View article]
The President is speaking about his proposals to crack down on manipulation in the oil market. Watch live here. [View news story]
The oil and gas industry praised the EO for gathering the disparate regulatory bodies under one roof, which would simplify regulations and reduce the red tape.
The President is speaking about his proposals to crack down on manipulation in the oil market. Watch live here. [View news story]
Obama has voiced support for natural gas. If you want to blame somebody for the failure of the Natural Gas Act in the Senate, blame the 39 myopic Republicans who voted no and Big Oil, which stuffs their campaign coffers full of cash.
The President is speaking about his proposals to crack down on manipulation in the oil market. Watch live here. [View news story]
Apple: Take Profits Before You Lose Them [View article]
Internally debating whether to sell AAPL is a good problem to have.
Is Pfizer Pfinished? [View article]
Apple's Cash Should Be Used For These Acquisitions Instead [View article]
As spring blossoms bloom
A cool million readers
Watch their stocks grow too.
Enter our Seeking Alpha 1 Million User Haiku Contest, by Tuesday at midnight, and a new iPad could be yours! (earlier) [View news story]
Million seekers have gains
In the billions.
Is Germany Actually Preparing To Leave The Euro? [View article]
Trade With The Ultimate Insider (It's Perfectly Legal) [View article]
That purchases of Wells Fargo, IBM, Visa piqued your interest says much about your skills as an investor and your understanding of the "interpretive dance cliches" you dismiss. These stocks are great under any style of analysis, and each fits perfectly with Buffett's investment philosophy. Wells Fargo is the financial institution Buffett knows best outside of Berkshire, and he already owns a hefty stake in the company. Wouldn't you buy a dip to add to an existing position you like? IBM is by far the biggest player in the high-margin, sticky business of consulting and analytics, almost guaranteeing strong cash flow and dividend growth. It is quickly becoming an indispensible part of the information-industrial complex, and its moat is wide and deep. Visa, a toll booth operator with no credit risk, might have the biggest moat of the three. One does not need any influence in Washington or "insight that only Warren Buffet brings to the table" to realize that these are great companies that were on sale.
As for BNSF, Buffett has had its eye on the company for a long time. By the time Berkshire acquired BNSF, Berkshire already owned over 20% of the company. Berkshire purchased this stake through 2007. Regardless of the timing of the final acquisition, what's so unusual about one company buying another company in which the first company owns a significant stake?
Buffett certainly does not need me or anyone else to defend him from the likes of you. He makes turds that are better investors than you. I commented because your article is full of innuendo and even more full of ignorance. Hopefully, you wrote it only as an enterprising attempt to generate hits, like the 10 tired Apple-bear articles that Seeking Alpha approves every day.
Jamie Dimon (JPM) continues to rail against over-regulation, telling Fox Business that policies coming out of Washington have led to a slower and rockier recovery: "It could have been better. I do think we have made this recovery slower and worse by uncoordinated policy, the debt ceiling crisis and tons of other things that were misguided." [View news story]
A Cisco And Dell Strategy That Apple Should Avoid [View article]
Dick Bove is furious over "the mortgage deal from hell" that provides $25B in relief for distressed borrowers, states and the U.S. government. "Those people lucky or smart enough to stop making payments on their homes may get their loan balances reduced," Bove fumes; headline risk for banks - particularly BAC - will continue since the DOJ is sketching up another lawsuit over securitization irregularities. [View news story]
CNBC's Mark Koba steps inside Ron Paul's fantasy of world of a world without a Fed and doesn't paint a pretty picture. A return to the gold standard, as Paul wants, would leave the dollar hostage to the whims of traders. Or, letting the Treasury manage the money supply would cause an "earthquake over who would be Treasury Secretary." [View news story]