Warren Buffett

Market Wrap-Up for Feb.18 (JWN, CF, DLR, SWK, EOG, WTW, more)

We’re saw a gradual rise for the DOW as other indices remained fairly flat, finishing what has been a generally solid week for the averages. We added a new yield-focused name to our recommended list today, while also removing three growth names from our list as well. Be sure to check out Dividend.com Premium for those stories if you did not read the e-mail alerts we sent out earlier today. Elsewhere, earnings results are lifting shares of Digital Realty Trust ( DLR ), a recent addition to our recommended list. Nordstrom ( JWN ) bounced off of earlier levels and closed higher following the company’s earnings report, as well as news the company was buying a private sales e-commerce company. Wall Street upgrades pushed several stocks higher, including Stanley Black & Decker ( SWK ), EOG Resources ( EOG ), and Raytheon ( RTN ). On the downside, fertilizer play CF Industries ( CF ) sold off after reporting better-than-expected results. Weight Watchers ( WTW ) also gave back just a smidgen of yesterday’s huge gains. The speculation in the venture capital space continues to rage on as we continue to hear about huge rounds of money being raised at ever-climbing market valuations. Mark Cuban just came out with some comments that echoed what I have been saying about the “game” that is going on, where eventually regular investors get burned with the usual late invitations to participate (post-IPO after the insiders have already cashed…

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Is Warren Buffett Heading for the Exits?

Is Warren Buffett Heading for the Exits?

Nobody ever rings a bell at the top. That’s why sometimes it is instructive to keep an eye on so-called “smart-money”—especially when they make a move towards the door. All of which, strikes me as curious since just a few months ago the grandfatherly Buffett said, “I am a huge bull on this country. We are not going to have a double-dip recession at all. I see our businesses coming back across the board.” Hmmmm…I wonder if he has changed his mind on this one. From Bloomberg by Andrew Frye entitled: Berkshire Exits BofA ‘a Loser’ on Three-Year Holding. “Warren Buffett’s Berkshire Hathaway Inc. sold its stake in Bank of America Corp., ending an investment that spanned three and a half years in which the lender’s stock lost more than two-thirds of its value Buffett’s firm had no shares in the Charlotte, North Carolina-based bank at the end of 2010, compared with 5 million shares three months earlier, Berkshire said late yesterday in a regulatory filing that lists the company’s U.S. stockholdings. Berkshire, where Buffett serves as chief executive officer and head of investments, entered the Bank of America stake with the purchase of 8.7 million shares in the second quarter of 2007. The lender’s CEO at the time, Kenneth Lewis, was expanding through acquisitions and telling investors that the U.S. housing slump would be over within months. “He’s closing out a loser,” said Jeff Matthews, author of “Pilgrimage to Warren Buffett’s Omaha,” whose Ram Partners LP invests in Berkshire and Bank of America. “We bought it during the crisis. But its earnings power coming out the crisis has been reduced.” Berkshire also eliminated its stakes in Nike Inc., Comcast Corp., Nalco Holding Co., Fiserv Inc., Lowe’s Cos. and Becton, Dickinson & Co. in the fourth quarter. In November, Berkshire disclosed that it had sold holdings of Home Depot Inc., trash hauler Republic Services Inc. and Iron Mounta”in Inc., a provider of records management. Buffett’s U.S. portfolio had 25 stocks and a value of about $52.6 billion at the end of December.” Maybe there is nothing to see here, but I don’t think so. You just can’t trust a guy that plays a ukulele. Related Articles: Warren Buffett’s Dividend Stock Strategy The Good Works of Bill Gates and Warren Buffett Ben Graham’s Winning Investment Advice Warren Buffett: The Investor of the Year To learn more about Wealth Daily click here. Advertisement Samurai Super Alloy It was the secret ingredient that turned an ordinary sword into the legendary Samurai Katana— the deadliest weapon before the arrival of modern rifles. Today, it’s crucial to the $987billion/

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Carlos Slim Catches Gold Fever

Carlos Slim Catches Gold Fever

Carlos Slim beat both Warren Buffett and Bill Gates in stock market performance last year. The reason: a hell-bent plan to start a brand-new gold and silver mining company in Mexico. Slim’s publicly disclosed holdings jumped 37% to $70 billion in 2010, according to data compiled by Bloomberg . Meanwhile, Buffett helped return a 22% gain for Berkshire Hathaway last year, and Gates’ Microsoft fell, hurting his overall annual returns even as he spread his investments into other sectors… The World’s Richest Man catches gold fever Slim — who made his fortune by building one of the world’s biggest telecommunication empires — has recently been making significant investments in gold and silver, particularly with a focus on precious metal mining in Mexico. Carlos Slim became the world’s richest man in 2010 with an estimated net worth of $55 billion. And a new spin-off mining company may help him widen his lead atop the global wealth list… Back in August, Slim’s holding company, Grupo Carso, S.A.B. de C.V., announced it would spin off a new precious metal mining company that would be focused on gold and silver mining in Mexico. The news added billions to Slim’s already ridiculous fortune as the plan to spin off the new company sent shares of Grupo Carso soaring in 2010, making it his best-performing asset last year. The new company (called Minera Frisco) produced nearly 200,000 ounces of gold and 5.5 million ounces of silver from its Mexican projects in 2010. Frisco recently reported plans to spend nearly $750 million this year to ramp up gold and silver production. The company estimates production from new mines in Mexico will more than double the company’s gold production to 440,000 ounces and nearly quadruple its silver production to 19.1 million ounces in 2011. Shares of Minera Frisco began trading Mexican Stock Exchange at the beginning of this year. But Slim and his family received nearly 80% of the new shares of Minera Frisco, and the stock is very thinly traded. Most analysts and investors will most likely avoid covering or owning this stock… However, there are many suitable alternative companies with a focus on gold and silver mining in Mexico. The largest of Minera Frisco’s publicly-traded competitors is the London-based silver major Fresnillo plc (LON: FRES) . Fresnillo plc Exchange: Symbol London: FRES P/E 39.76 Share Price 1,450 GBX Divided 5.90 GBX Market Cap 10.41 Billion GBP Yield 1.12% Fresnillo is the …

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The WSJ’s Most Controversial Article… Ever

Filed in BP, CBS, democrats, economy, euro, Gold, GOld juniors, Gold Market, o, Warren Buffett, yuan by on February 2, 2011 0 Comments
The WSJ’s Most Controversial Article… Ever

On January 9th, The Wall Street Journal ran an article that would become the most viewed, commented-on editorial in the publication’s history. The article was so controversial that the author — a Yale Law School professor — received several death threats. Thousands of enraged American readers went so far as to accuse her of advocating physical and emotional violence against children… Meet Amy Chua: a petite, 48-year-old Chinese American and the author of the WSJ firestorm piece, “Why Chinese Mothers are Superior”. Obviously, the headline caught my attention. My wife is Chinese and we have three children. But what really surprised me was the viciousness of the comments from readers. But as I perused through the comments of anger, hate, and even threats to Chua, I realized I as was actually reading comments of insecurity, fear, and envy. Think about it… Had this article been written by anybody other than a Chinese professor, it would’ve gone largely unnoticed. Bottom line: Americans fear the Chinese juggernaut. Here are just a few headlines from the past year that have caused panic among Americans and the West: Pentagon Surprised, Concerned as China Debuts High-Tech Weapons — Politics Daily Chinese ‘Carrier-Killer’ Missile Could Reshape Sea Combat — Fox News Chinese ‘carrier-killer’ missile raises concerns of Pacific power shift — Associated Press China Stealth Fighter? Photos Released Online Raise Speculations — Huffington Post China’s First Stealth Fighter Test Successful — CBS News China backs Spain to emerge from crisis: Beijing — Sydney Morning Herald Move Over Europe, China Is Pushing to Bailout the Greek Economy — Washington Post Wow: China to Bail Out Europe? — Daily Mail UK China’s Pres. Hu calls dollar’s preeminence ‘thing of the past’ — Wall Street Journal President Hu provoking the US by suggesting yuan replace dollar as reserve currency — AsiaNews.it And now Americans are fearful of the Chinese mother, as reported by Time Magazine: “Tiger Mom: Amy Chua Parenting Memoir Raises American Fears.” I hear it every day… “China is going to overtake the U.S. economy… We need to catch up before they flood our markets with electric cars, wind turbines, and …

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Top Dividend Stocks

Top Dividend Stocks

Like a fleck of pepper in a bag of sugar, Kathleen Casey-Kirschling is entirely unique. Born on New Year’s day 65 years ago, she is the oldest baby boomer of them all. That puts her at the head of the line of new retirees that stretches 78 million people deep… According to the Pew Research Center, about 10,000 baby boomers will turn 65 every day for the next 19 years. Between rising consumer prices, falling home values, and a tough economy, today’s newest oldsters are finding that, when it comes to a comfortable retirement, many of them are increasingly coming up short. In fact, according to a recent Employee Benefit Research Institute survey, one-third of people age 55 and older have less than $10,000 saved for their golden years, while a full two-thirds have less than $100,000 socked away. The “lifestyle gap” Given that Social Security benefits will replace only 16% of the income for married couples earning between $50,000 to $100,000, and only 9.5% of the income of married couples earning $100,000, this leaves an impending “lifestyle gap” that very few of these folks will be able to finesse. Instead of lives of leisure, many of them will need second careers as Wal-Mart greeters. That’s not a low blow, but the reality of the new math — $100,000 is a drop in the bucket for these folks. And let’s face it; even the prospect of those bare-bones Social Security checks is as flimsy as ever. By 2030 — when most of the baby boomers will have retired — just two people will be working to support each person receiving benefits. At that point, it’s likely this Ponzi scheme will have already blown up. As I reported last March , Social Security is already cash flow negative, paying out more in benefits than it receives in contributions. That’s five years ahead of schedule, according to the Congressional Budget Office. As for me, this is one train wreck I’m not counting on — and neither should you. Personally, I have no intention of spending my golden years learning the intricacies of the drive-thru window. So what is a prospective retiree to do ? you ask… The answer is pretty simple: They need to begin creating an income stream from their investments to close the gaps they will inevitably face when they retire. And the time to get started was yesterday. This means building a portion of your portfolio around a solid base of dividend stocks. Because with the FED waging a virtual war on savers, the dividend payers are your next best option — versus things like CDs, or at this stage, even bonds… That’s why long-term investors are so eager to gobble up high dividend yields these days. ~~SIGNUP_WD~~ What is a dividend, anyway? In short, a dividend is a cash payout you receive for simply being a shareholder, sort of like receiving a “bonus” based on the company’s earnings. Better yet, these checks are deposited directly into your account quarterly or monthly, depending upon the company you choose. These “bonuses” also continue to offer lower tax rates, since the favorable tax treatment of dividends has been extended for another two years. The rate remains at 15 percent (instead of your regular tax rate) unless you are in the 10…

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Facebook Raises Another $1 Billion From Outside US

Facebook adding another $1 billion to its latest round of funding, to bring the total to $1.5 billion, and valuing the company at $50 billion. That includes the approximate $500 million Goldman Sachs (NYSE:GS) and Digital Sky Technologies invested in Facebook in December. While some like to make a big deal about Facebook having a market value higher than eBay (NASDAQ:EBAY) and Yahoo (NASDAQ:

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