• 04 Jul
    Why Yesterday’s Retirement Investing Advice Won’t Work In Today’s Environment

    Why Yesterday’s Retirement Investing Advice Won’t Work In Today’s Environment

    • Common retirement investing advice worked ok in the past, but could have been much better.
    • Why would you sell stocks that you bought a long time ago, and that are still growing and paying dividend, to buy bonds that yield less than inflation?
    • Over the long term, little differences amount to a huge difference. Take responsibility for your retirement.

    Introduction

    The common advice on retirement investing is to be overweight stocks when you are far from retirement and then overweight bonds when you are closer to retirement. Some funds offer target date retirement funds that have such a portfolio allocation.

    Vanguard’s target retirement funds invest up to 90% in stocks when you are more than 25 years from retirement, and then lower that exposure to about 50% when you retire. 7 years into retirement, you have 70% of your portfolio in bonds. More →

  • 03 Jul
    Why Buffett Bought Store Capital & What We Can Learn From It

    Why Buffett Bought Store Capital & What We Can Learn From It

    • Analyzing Buffett’s purchase can give us excellent insight into how good investments can be found in any environment.
    • STOR still offers a 7.7% AFFO yield for 2017, a 5% dividend yield, and expected growth of over 5% per year.
    • REITs’ performance is closely related to interest rates, but when you find one where the yield is satisfying and the risk is low for your portfolio, well, then you don’t have to care much about what’s going on in the economy or with interest rates.

    Introduction

    If you’ve been reading Investiv Daily for a while, you know I’m always using Warren Buffett as an example of investing excellence.

    Buffett has been doing the same simple things over and over again for the last 52-years, thus since present management took over at Berkshire Hathaway (NYSE: BRK.A, BRK.B), and has been extremely successful with average yearly gains of 19% compared to the S&P 500’s 9.7% with dividends.

    So when Warren Buffett buys a specific stock, it’s important to analyze the purchase in order to learn as much as possible from it. More →

  • 02 Jul
    Sunday Edition: Things Are Looking Bright For Solar Stocks

    Sunday Edition: Things Are Looking Bright For Solar Stocks

    On occasion, I like to take a look back over the stocks I’ve written about to see how the technical patterns I’ve identified in their charts have played out.

    In early January of this year, I wrote a piece for our sister publication, Direction Alerts, about Canadian Solar (NASDAQ: CSIQ). In the article, which you can find here, I discussed how CSIQ was nearing a breakout from a falling wedge pattern and could soon be beginning a new uptrend that could see its price potentially rising 100% or higher.

    So where is CSIQ today? More →

  • 30 Jun
    These Correlations Might Make You Reconsider Your Portfolio Exposure To Gold

    These Correlations Might Make You Reconsider Your Portfolio Exposure To Gold

    • Central banks are slowly introducing the markets to higher interest rates, but this is just due to inflation and thus the effect on gold will be positive.
    • Since 1971, the trend for gold, monetary policy, and government debt burdens is clear.
    • Portfolio exposure to gold of 7.5% should be seriously considered.

    Introduction

    Gold prices are difficult to forecast as anything can happen, but as I have already written about how gold should be a part of every portfolio because it is a perfect hedge for economic and monetary turmoil, I’ve decided to write about the current position of gold in relation to economic forces in order to better determine how much of a portfolio should be exposed to gold. You can find my reasoning behind owning gold miners in my article available here. More →

  • 29 Jun
    Oil Is Down. Is It Time To Buy?

    Oil Is Down. Is It Time To Buy?

    • Even if oil prices are volatile, demand is stable and costs are known. This allows us to find the balance value and trade around it.
    • With oil above $50, all big producers are profitable and expanding investments and production, but that’s not a good long-term sign for oil prices.
    • For low risk, high return investments, investors should wait for some kind of panic that pushes oil prices below $40.

    Introduction

    In March when oil prices were around $54 per barrel, I wrote an article that described a low risk, high reward investment strategy related to oil.

    The article, available here, advised readers to wait for oil prices to fall much lower to lower investing risk and increase returns because the long-term oil price is defined by supply and demand surrounding production costs while in the short term, anything can happen as OPEC news can easily move markets. More →

  • 28 Jun
    The 3 Rules To Achieving 10% (Or Higher) Yearly Returns

    The 3 Rules To Achieving 10% (Or Higher) Yearly Returns

    • Achieving 10% per years is pretty simple, just follow three rules.
    • Many forget to include risk in the 10% expected return puzzle.
    • However, if you do your homework, yearly dividend yields of above 60% shouldn’t be excluded. An example will be provided.

    Introduction

    I always talk about how the S&P 500 is overvalued and how everybody should achieve returns of more than 10% per year.

    In fact, I strongly believe that anyone is easily capable of achieving such returns. To achieve returns, say, in the higher teens, you’d need to be a very good investor or have someone telling you what stocks to buy and when. But that puts us in the Buffett, Soros, Klarman, and Dalio category, so we’ll stick with the easy today and discuss how to achieve returns of above 10% per year. More →

  • 27 Jun
    How To Spot A Bargain

    How To Spot A Bargain

    • Some countries are three times cheaper than the S&P 500 while one is five times cheaper.
    • I’ll describe an earnings exercise that helps in discovering bargains and give a hint on a few sectors to look at.
    • It would take the S&P 500 31 year of constant earnings growth at 5% to reach Kroger’s cumulative earnings if Kroger’s earnings just stay flat.

    Introduction

    As you probably know, the S&P 500 and many other indexes are extremely expensive. The cyclically adjusted price earnings (CAPE) ratio for the S&P 500 is 29.87, which is just about to pass the 1929 peak CAPE ratio. However, the situation isn’t much better around the world. The German stock index has a CAPE ratio of 19.6, the Dutch index 21.6, Australia 17.5, India 20.3, and Japan 24.9. These CAPE ratios of around 20 mean that you can expect investment returns of around 5% or lower in the long term.

    I find any kind of stock market return below 10% a crazy investment because the risk of owning stocks is simply too high for anything less than 10%. You might wonder where you can find double digit investment returns. Well, this is what I’m going to share in this article. More →

  • 26 Jun
    Don’t Follow The Herd: Why The Majority Of Investors Always Get It Wrong

    Don’t Follow The Herd: Why The Majority Of Investors Always Get It Wrong

    • Consider this, the question always remains the same: “What will my return on investment be?” But the answer changes all the time.
    • Thinking costs energy and humans prefer to let others do the thinking for them. Are you like that?
    • It’s important to know when to use history as a teacher.

    Introduction

    “Whenever you find yourself on the side of the majority, it is time to pause and reflect.” 

    – Mark Twain

    When Albert Einstein was teaching at Oxford University, he gave his senior physics students exactly the same exam he had given them the year before. His assistant was disturbed by such a mistake, but before intervening he asked Einstein whether he actually made a mistake. Einstein replied that the exam was exactly the same. The assistant was even more concerned and asked why he would do such a thing. Einstein replied, “Well, the questions are still the same, but the answers have changed.” More →

  • 25 Jun
    Sunday Edition: This Could Be Your Next 10-Bagger

    Sunday Edition: This Could Be Your Next 10-Bagger

    If you’re like me, you’ve looked at more than a few charts and wished you had invested when a stock was coming off a bottom and was on its way up rather than looking for clues that tell you if there’s another buying opportunity on the horizon so that you can get in on the uptrend too.

    Lucky for us, there are ways to spot a bottom. And once you do spot one, it only takes the courage of your convictions to buy in even with sentiment at its worst.

    This week, I believe I have spotted a bottom in Teekay Corporation (NYSE: TK). More →

  • 23 Jun
    Does It Make Sense To Buy FAANG Stocks Now?

    Does It Make Sense To Buy FAANG Stocks Now?

    • With the exception of AAPL, all FAANG stocks have beaten the S&P 500 in the last 5 years.
    • By using Graham’s growth stock formula, I’ve determined the real value of FAANG stocks in order to see whether they are still a good investment.
    • Surprise, surprise, only one stock is overvalued, while some are still bargains.

    Introduction

    FAANG stocks—Facebook (NASDAQ: FB), Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), Netflix (NASDAQ: NFLX), and Alphabet, i.e. Google (Nasdaq: GOOG, GOOGL)—have been the clear drivers of the current bull market. And all but AAPL have significantly outperformed the S&P 500 index.

    The S&P 500 index is up 78% in the last 5 years, AAPL 73%, GOOG 228%, AMZN 334%, FB 389%, and NFLX a whopping 1,454%. More →

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