Before I delve into this post, I would like to preface that this does not advocate Trump for his presidency or push my political beliefs. This, after all, is a value investing blog. I simply came across this book when in the book store (yes people still go to those) and couldn't help but buy it out of curiosity. At my previous job, during end-of-year office presentations this is a book that we would often joke that a managing director would be reading. It made me wonder how many financiers have actually taken the time to read it and whether it was worth the read. I do recommend the book for it's entertainment factor, but not has a must-read book for practical business or investing application. However, there are a few over-arching themes and points made within his "The Elements of the Deal" chapter that I think we can garner and utilize successfully in investing. Outside of these themes is mostly a biography of Donald Trump covering his life up until the late 1980's written with Trump's well-known chutzpah (for better or for worse). … [Read more...] about The Art of The Deal
You probably don't need me to tell you that Apple reported earnings yesterday. Every financial media outlet out there has some type of article announcing the results. Here are a few of the article's I've come across this morning: Apple's earnings beat has some analysts worried it was too impressive Apple Earnings Fall on iPhone Slump Apple's Earnings: Analyst upbeat as 'toughest two quarters' now behind it Apple Earnings Fall on iPhone Slump … [Read more...] about Loving and hating Apple (NASDAQ: AAPL)
I came across the video, Crazy - a Story of Debt by Grant Williams (embedded video below), the other day through The Investors Podcast, and it's worth the watch. If you don't have the time to watch the entire 40 minutes, half way through will do the trick. Believe me, the 20 minutes is worth the time. It is very well presented, informative, and actually fairly comical. We are clearly living in uncharted territory. There are a lot of uncertainties in our midst: Brexit, possibilities of future referendums from the EU, raises in interest rates, continuous terrorism, a new US president, national and global debt and the list goes on. Now, I don't want to get into which of those uncertainties I'm actually worried about. The point here is that the market is very worried about several of these and that these uncertainties could be a catalyst to making the market correct itself. I'll go on record that I believe the market is overvalued at current levels, but if you watch the video you don't need me telling you that. With this knowledge, what should we investors do? Predicting the stock market will prove to be futile From my post regarding where most investors stumble, predicting the market falls under speculating and isn't truly investing. It is good to understand the underlying drivers of today's stock market and what is causing the overvalution we are seeing. By doing so, you will be able to make thoughtful and rational decisions for your portfolio. Knowing that the market is overvalued and therefore moving your assets to cash or less risky assets in my opinion, is not predicting the market. I believe this is the case because I don't know when the market is going to correct itself. For all I know, it could happen two years down the line, or longer. Take a look at the history of bull and bear markets. This being the third longest bull market in history, it just solidifies my belief that I don't know what's going to happen or when. There have been longer bull markets, … [Read more...] about Predicting the Unpredictable
When I was growing up and first learned about dividends, I thought it was the greatest thing that I had ever heard to be true. "You mean if you own some stock, you can really get paid cash every so often, and potentially live off of it?" No doubt, I was hearing about people who were making thousands in dividends. Wouldn't that be nice? It wasn't until later I learned how much stock you would need to be able to live off of dividends, and even later still did I learn that maybe dividends aren't the greatest thing in the world. … [Read more...] about Dividends or no dividends?