Saturday, April 12, 2025
While the markets remain in a state of turmoil and prices continue to fall, corporate activists have been picking up their pace. Two developing situations are now worth the attention of patient but aggressive investors… Because the potential returns are getting quite big. Here’s what I’m seeing… First, there is the ongoing saga of Kohl’s […]
This year is on pace to be the worst in history for the standard 401k investment strategy. A balanced portfolio of stock and bond index funds has performed terribly in 2022. Workers who get their third-quarter 401k statements will be shocked. Today, let’s discuss why this happened and how to do better… The traditional 60/40 […]
You may have heard the saying, often (mis-)attributed to Mark Twain, that history does not repeat, but sometimes it rhymes. Well, I just saw a table of historical returns that shows how some historical rhyming will benefit our stock portfolios. Let’s take a look… This table comes from Charlie Bilello, founder and CEO of Compound […]
I am always hunting for ideas that can boost portfolio returns for individual investors. I read, I ponder, I imagine, I study, and I test these ideas. Many of them end up in the junk pile as good ideas gone bad—these are usually the ones that sounded the most exciting when I first had or […]
There is no doubt that in an inflationary environment—such as the one in which we find ourselves now—consumer spending habits are affected. As prices continue to rise, people will stop to consider the things they really need versus the things they would like to have. For example, when it comes to food, people simply must […]
In 2016, renowned value investor Monish Pabrai developed a simple concept called “Uber Cannibals.” He suggested that buying a five-stock portfolio of companies that were buying back large amounts of their own stock, that were cheap based on undefined valuation multiples, and that fit his definition of quality, would outperform the market.I have discussed many […]
Like everybody else, I love dividends. Always have and always will. I am also a big fan of stock buybacks. I get a kick out of the endless debate about stock buybacks. They are neither good nor bad in and of themselves. Stock buybacks are fantastic at low valuations with funds generated by the business. […]
The share price of Peloton (PTON) has taken a massive beating after being a darling of the Covid era. The exercise bike maker has struggled to appease investors as sales growth has slowed. However, investors liked a new deal between PTON and Amazon (AMZN) last week, which sent the shares up 20%. A bullish block […]
I am a huge fan of special situation investing. Situations that involve unusual buying activity by insiders or corporate activists, merger arbitrage and bidding wars, and other unusual events can offer the opportunity for outsized profits no matter what the markets might do. Sir John Templeton once remarked that it is impossible to beat the […]
Enough is enough. I get it—European bankers are crooks, thieves, and charlatans. The European Central bank has made a mess of everything. The bankers take too many naps and spend too long on vacation. What difference does it make anyway? The Europeans who don’t sweat to death this summer will freeze to death when Putin […]
