It feels as if the longer interest rates remain depressed, the crazier company valuations become. As investors scramble to find returns in this stretched market, some are turning to IPOs, private equity, and other risky, often speculative investments. This makes finding quality stocks even harder.
Last week, we wrote about the riskiest stocks in the Dow Jones Industrial Average. We thought we’d be remiss to not mention our favorite stocks in the index as well. Not all of the blue chips are created equal, and the following are what we consider to be the most attractive investment opportunities in the Dow at the moment.
The Large Cap Blend style ranks first out of the twelve fund styles as detailed in my Style Rankings for ETFs and Mutual Funds report.
In my most recent article, I said that modest growth over the next 15 years makes Intel worth ~$41 share today, and this earnings report strengthens my belief in that fair value estimate.
INTC is still a good stock for a value investor, but it’s not as great as it was eight months ago.
Sometimes, a great company can actually be a risky stock when it gets significantly overvalued.
Investors are good at picking cheap funds. We want them to be better at picking funds with good stocks. Both are required to maximize success.
Almost every investor knows Warren Buffet’s famous advice, “Be fearful when others are greedy and greedy when others are fearful.” Now is the perfect time to get greedy with INTC.
The Large Cap Blend style ranks first out of the twelve fund styles as detailed in my Style Rankings for ETFs and Mutual Funds report. It gets my Neutral rating, which is based on aggregation of ratings of 33 ETFs and 908 mutual funds in the Large Cap Blend style as of October 17, 2013. Prior reports on the best & worst ETFs and mutual funds in every sector and style are here.
The net amount of deferred compensation is included in shareholder value. If a company has a net liability, future cash flows will be diverted to pay for that obligation. If a company has a net asset, then any future increases in the obligation will not need to be met with new contributions from the company. Instead, the company can return that cash to shareholders.
Converting GAAP data into economic earnings should be part of every investor’s diligence process. Performing detailed analysis of footnotes and the MD&A is part of fulfilling fiduciary responsibilities.
Picking from the multitude of sector mutual funds is a daunting task. In any given sector there may be as many as 229 different mutual funds, and there are at least 631 mutual funds across all sectors.
Finding the best ETFs is an increasingly difficult task in a world with so many to choose from.
With so many ETFs out there, investors cannot simply look at ETF labels. They need in-depth research of the ETFs holdings and costs. New Constructs offers this kind of research.
Everyone wants diligence. Few will ever turn it down. The problem is that diligence is expensive. New Constructs makes diligence cost-effective.
When I ran across the recent article “270,033 pages later, a chance to catch our breath…”, I could not help but admire footnoted.org’s marketing moxy.
The article provides a count of the number of pages of 10-K filings that have poured in during the real earnings season. It also highlight a couple of the largest filings. At first glance, it is easy for one to assume that all of the 270,033 pages were also analyzed.
Nearly all of the investing world ignores 10-K season. 10-Ks contain the most important financial information that companies provide all year.
Investors are good at picking funds with low costs. They are not good at picking funds with good stocks. Both are required to maximize opportunity for success.
For those investors interested in rigorous research, I offer my roadmap to the best stocks and funds in the market by sector. The full sector roadmap is here.
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