Microsoft: Steve Ballmer Deserves The Ron Johnson Treatment [View article]
I've owned MSFT on and off since the IPO. Ballmer's gotta go. He was a great #2 for Gates. He is the wrong guy to run the company. High IQ, but too abrasive and not a techie.
It Is Not Different This Time - It Is Worse [View article]
@jackscure: So which country are you betting on, sir? With all of her problems, America is still the world's tallest dwarf. My $ is on good American companies. Let's compare notes 5 years from now.
@MarketDummy: I know I'm off-topc, but you're right- hiring Hejlsberg and the resulting .Net framework are 2 things MSFT got right (I love C#). They need new blood at the top. Ever since Ballmer took the helm, the stock has been dead money. He was the perfect henchman for Gates, but not the best person to run the company.
Samsung Galaxy S4: A Gift To Apple Shareholders [View article]
@Glenn Abrett: I used to hold a similar view on interpreted apps. However, having seen how fast my C# programs run on Windows machines, I have had a change of heart. With hardware getting faster and cheaper by the day, the penalty for having a virtual machine to is almost negligible. Interestingly, Windows .Net applications which run on a virtual machine can actually run faster at times than natively compiled apps because the virtual machine is aware of the CPU type it is running on and therefore can take advantage of advanced CPU instructions. Couple this with the huge benefit of cross-platform development, and a very compelling case can be made for developing code for virtual machines.
Your last sentence sums it up well: "the market rewards those who buy good companies with attractive valuations, and punishes those who overpay for strong growth."
I for one, like companies that grow their dividends. I have had great success with the Vanguard Dividend Growth ETF (VIG). In the last 5 years it outperformed the S&P by 10% with a lower volatility as a bonus (source: http://bit.ly/vMqV4T).
Interesting mix. What I found interesting in my analysis is, an equally weighted portfolio of these 5 stocks either matched or exceeded the S&P 500 ETF's (SPY) return while yielding 5 to 7% dividend in the last few years (source: http://bit.ly/vMqV4T).
Why You Shouldn't Think Of The S&P 500 As A Diversified Basket Of 500 Companies [View article]
Good observation. The following sentence sums it up- "I find it important to have the concrete knowledge that the top 20 holdings in the index represent more of your investment dollars than the bottom 200 companies combined."
And that is precisely what I do when I purchase an ETF. I focus on the top 10 stocks which often accounts for up to 50% of the fund's weight. Luckily you can easily find this info in Yahoo Finance.
Microsoft's biggest problem is Steve Ballmer. While he was a great henchman for Bill Gates, Ballmer is the wrong guy to run Microsoft. He's a marketing guy who doesn't have the respect of people inside or outside the company. They need a visionary leader who can inspire employees and fix their image. Yes they have a huge image issue. They are seen as a dinosaur cranking out buggy bloatware. In reality they have the broadest product portfolio of any software company on the planet. They have dozens of products, each of which could rightfully be spun off as individual companies (eg. SQL Server, Office, Visual Studio). The company is full of very high IQ techies. And 25 years after the IPO they are still a cash cow.
But they need an image overhaul. New blood at the top would do wonders for the company and the stock. Step aside, Mr. Ballmer. You were class valedictorian. You are clearly smart enough to know when your time is up.
Anchor Stocks For An Income Portfolio [View article]
Good analysis. Not only does this 5-stock (equal weight) portfolio beat the S&P by a huge margin for a 5 year period, it is less volatile (http://bit.ly/vMqV4T). In 2008, when the S&P lost almost 40% of its value, this portfolio was down only 11.6%. Also you would collect 3%+ in dividends along the way (http://bit.ly/vzmy9B).
Morgan Stanley Upgrade Of Amazon Ridiculous At Every Level [View article]
@Paulo S: I totally agree with you. In the above post I was replying to Vix's question to me why I shop on Amazon at all. In a post above it I point out the exact same thing you mention. Amazon's business model is built on pricing with near zero margins, not a sustainable model. But institutional investors keep propping up the stock.
Morgan Stanley Upgrade Of Amazon Ridiculous At Every Level [View article]
@vix: Maybe it's just me, but I don't like using my credit card on dozens of web sites and dealing with each one's ordering and return systems. Mind you, if I find an expensive item considerably cheaper elsewhere I will purchase it there, but on the average Amazon has very competitive pricing and since I have the Prime membership, I get 2nd day delivery for free on anything they sell. I've been buying stuff on Amazon since the late 90's and I have NEVER had a bad experience. Can you say that about the dozens of online sites you use? You say nearly every vendor offers free shipping? 2nd day delivery? Really??
The Secret Of Warren Buffett's Alpha [View article]
@Shane M: I totally agree. Buffett takes calculated risks (greedy when others are fearful, to use his own words) and he should rightly be rewarded for it.
Morgan Stanley Upgrade Of Amazon Ridiculous At Every Level [View article]
Good article. AMZN stock is probably one of the longest running Ponzi schemes after Madoff. I love buying stuff on Amazon and I think Bezos is a great CEO. I even think they can continue to grow their revenues at a double digit rate for a few more years because they are better at online retail than just about anyone else out there. However, a trillion dollars in sales is meaningless if your margin is near zero. One metric I use is the one Warren Buffett professes, "owner earnings." The following is Amazon's owner earnings for the last 3 years (source: http://bit.ly/vzmy9B). See a trend?
2009 $907 million 2010 $741 million 2011 ($97) million
Avoid Paying Taxes The Warren Buffett Way [View article]
@snoopy44: While I agree with you that "gouge the rich" schemes backfire, what needs to be addressed is the myriad of tax loopholes that the rich use to lower their effective tax rates way below Joe Taxpayer's rate. As for charitable giving to avoid taxes, do you think anyone intelligent enough to make a fortune gives away a dollar to save 35 cents in taxes? They didn't get rich using such logic.
Microsoft: Steve Ballmer Deserves The Ron Johnson Treatment [View article]
It Is Not Different This Time - It Is Worse [View article]
Intel: $48 Per Share In 4 Years [View article]
Samsung Galaxy S4: A Gift To Apple Shareholders [View article]
Does Growth Matter? [View article]
I for one, like companies that grow their dividends. I have had great success with the Vanguard Dividend Growth ETF (VIG). In the last 5 years it outperformed the S&P by 10% with a lower volatility as a bonus (source: http://bit.ly/vMqV4T).
5 Bullet-Proof Dividend Growers Yielding 5% [View article]
Why You Shouldn't Think Of The S&P 500 As A Diversified Basket Of 500 Companies [View article]
And that is precisely what I do when I purchase an ETF. I focus on the top 10 stocks which often accounts for up to 50% of the fund's weight. Luckily you can easily find this info in Yahoo Finance.
Can Microsoft Rise Again? [View article]
But they need an image overhaul. New blood at the top would do wonders for the company and the stock. Step aside, Mr. Ballmer. You were class valedictorian. You are clearly smart enough to know when your time is up.
Anchor Stocks For An Income Portfolio [View article]
Morgan Stanley Upgrade Of Amazon Ridiculous At Every Level [View article]
Morgan Stanley Upgrade Of Amazon Ridiculous At Every Level [View article]
Morgan Stanley Upgrade Of Amazon Ridiculous At Every Level [View article]
The Secret Of Warren Buffett's Alpha [View article]
Morgan Stanley Upgrade Of Amazon Ridiculous At Every Level [View article]
2009 $907 million
2010 $741 million
2011 ($97) million
Avoid Paying Taxes The Warren Buffett Way [View article]