#-ad_banner-#Famed value investor Benjamin Graham once quipped: “When you can buy a dollar for 40 cents, you don’t have to worry about what the stock market is doing.”  That simple credo perfectly sums up the theory of modern value investing — only purchase stocks that are trading at a sizeable discount to their intrinsic value. Graham’s mantra is similar to that age-old Wall Street mantra to “buy low and sell high.” It sounds simple enough, but it is deceptively complex in practice.  The truth is value investing can often require leaning against the consensus view and looking for pockets of… Read More

#-ad_banner-#Famed value investor Benjamin Graham once quipped: “When you can buy a dollar for 40 cents, you don’t have to worry about what the stock market is doing.”  That simple credo perfectly sums up the theory of modern value investing — only purchase stocks that are trading at a sizeable discount to their intrinsic value. Graham’s mantra is similar to that age-old Wall Street mantra to “buy low and sell high.” It sounds simple enough, but it is deceptively complex in practice.  The truth is value investing can often require leaning against the consensus view and looking for pockets of value in less glamorous sectors and not-so-obvious stocks. Other times they’re right in front of your face the whole time.  Below, I profile two companies that I think they may just be the most undervalued stocks in America. Cisco Systems, Inc. (Nasdaq: CSCO) Cisco is among the market’s best-known stocks. It’s a dominant firm in a high-margin business. During the past five fiscal years, Cisco’s revenue rose from $36 billion in 2009 to $47 billion in fiscal 2014 — an increase of 31%. Despite the rise in sales, earnings have held steady. Under normal… Read More

Sometimes, an insult is actually a compliment. Warren Buffett once quipped that an idiot in the corner office is not necessarily a bad thing. I’ll let the Sage of Omaha say it is his own words: “I try to buy stock in businesses that are so wonderful that an idiot can run them. Because sooner or later, one will.” #-ad_banner-#It’s actually a brilliant bit of insight. Let me explain. So many companies have floundered once the management baton has been handed from the founders to the next generation of management. The… Read More

Sometimes, an insult is actually a compliment. Warren Buffett once quipped that an idiot in the corner office is not necessarily a bad thing. I’ll let the Sage of Omaha say it is his own words: “I try to buy stock in businesses that are so wonderful that an idiot can run them. Because sooner or later, one will.” #-ad_banner-#It’s actually a brilliant bit of insight. Let me explain. So many companies have floundered once the management baton has been handed from the founders to the next generation of management. The only way such a transition can be successfully handled is by establishing clear and simple principles that are easy to execute. The next CEO just has to keep his hand on the rudder and keep the boat sailing on the right heading. I’m always cognizant of that notion when adding new holdings to my Top 10 Stocks portfolio. I would never want to invest in a company that required a lengthy explanation of its mission statement. “Keep it simple,” is the mantra that we should all heed. Here’s the real problem… Read More

Some argue that America is on the decline. From ballooning government debt to prolonged conflict overseas to scandalous behavior on Wall Street, it’s easy to think that these talking heads might be on to something. #-ad_banner-#Likewise, conventional wisdom says that American industry is “over the hill.” Many observers today believe that U.S. firms simply can’t compete with the likes of the emerging Chinese and Brazilian markets. It’s certainly true that on a basic scale, those economies are growing faster. America’s 1.9% GDP growth last year doesn’t come close to China’s 7.7%. Read More

Some argue that America is on the decline. From ballooning government debt to prolonged conflict overseas to scandalous behavior on Wall Street, it’s easy to think that these talking heads might be on to something. #-ad_banner-#Likewise, conventional wisdom says that American industry is “over the hill.” Many observers today believe that U.S. firms simply can’t compete with the likes of the emerging Chinese and Brazilian markets. It’s certainly true that on a basic scale, those economies are growing faster. America’s 1.9% GDP growth last year doesn’t come close to China’s 7.7%. Sure, America has its problems. There’s no denying that. But if you look a little deeper, you’ll find that there’s one area — perhaps the most important area — where America still firmly leads the globe. Innovation. Across the Fortune 500 landscape, you’ll find hundreds of American companies allocating huge sums of money toward research & development (R&D). Just look at Forbes’ recent list of the world’s most innovative companies. Six firms out of the top 10 on the list are headquartered in the United States. Read More

I look over hundreds of financial statements week in and week out, and I’ve come to one important conclusion: There’s a lot of unintentional financial trickery that goes on when corporations report their annual financial performance. #-ad_banner-#It’s a simple result of the fact that financial reporting has become so complex that few people — even those preparing the numbers — truly understand what’s behind the figures. And while on some level that’s concerning, I think it actually creates a major opportunity for investors who are willing to dig into the numbers… Read More

I look over hundreds of financial statements week in and week out, and I’ve come to one important conclusion: There’s a lot of unintentional financial trickery that goes on when corporations report their annual financial performance. #-ad_banner-#It’s a simple result of the fact that financial reporting has become so complex that few people — even those preparing the numbers — truly understand what’s behind the figures. And while on some level that’s concerning, I think it actually creates a major opportunity for investors who are willing to dig into the numbers and find out what they really mean. Let me show you. Most corporate financial announcements usually focus on one number: earnings. They typically compare this figure to the previous quarter or the year-ago period (ex. “profits were down 5% as compared to Q1 2014”). Now don’t get me wrong, it is an important metric, but here’s the problem: earnings are affected by a lot of things that may or may not make a difference to the business, such as non-cash charges for things like stock options or depreciation… Read More

I spend a lot of time on the road. As far as I’m concerned, to truly grasp the investment opportunities that emerge each year across the globe, there’s no better way than to actually see it in person. My travels recently took me to Hong Kong, the island protectorate that has been home to the some of the most stunning stock market gains seen in quite some time. #-ad_banner-#While visiting the area, which has been under Chinese control since 1999, I had a chance to sit down with friends working and investing in Hong… Read More

I spend a lot of time on the road. As far as I’m concerned, to truly grasp the investment opportunities that emerge each year across the globe, there’s no better way than to actually see it in person. My travels recently took me to Hong Kong, the island protectorate that has been home to the some of the most stunning stock market gains seen in quite some time. #-ad_banner-#While visiting the area, which has been under Chinese control since 1999, I had a chance to sit down with friends working and investing in Hong Kong — first over tapas and wine on the famed Old Bailey Street in Central district, and then whiskey and Cuban cigars at a friend’s private club. And what they told me confirmed the data I’ve been seeing on this part of the world: a powerful investment trend is in full swing. You see, over the past two months, the Hong Kong stock exchange has been on a tear. Beginning March 11, the benchmark Hang Seng index gained 20% to hit a high of around 28,500 in late April. Since then,… Read More

These seven stocks have done the impossible. Each one of them has paid a dividend like clockwork for over a century. In fact, the longest-standing dividend payer on the list hasn’t missed a payment since 1877 — when Rutherford B. Hayes was president. #-ad_banner-#Think of everything that has happened to our financial system since that time: World War I and II, The Great Depression, the dot-com bubble, government shutdowns, the list goes on. For the seven stocks I’m about to show you, none of this seemed to matter. These companies breezed through every economic downturn America has ever faced without… Read More

These seven stocks have done the impossible. Each one of them has paid a dividend like clockwork for over a century. In fact, the longest-standing dividend payer on the list hasn’t missed a payment since 1877 — when Rutherford B. Hayes was president. #-ad_banner-#Think of everything that has happened to our financial system since that time: World War I and II, The Great Depression, the dot-com bubble, government shutdowns, the list goes on. For the seven stocks I’m about to show you, none of this seemed to matter. These companies breezed through every economic downturn America has ever faced without so much as a hiccup in their dividend payments. In fact, most of them were able to increase their payouts during those periods. That’s a pretty remarkable feat. In 2009 alone, more than 800 American companies had to cut their dividends because of the fallout from the subprime crisis. Now, to be fair, there is nothing secret about these stocks. You’ve probably heard of all these companies before. But to me, that’s not a deterrent. In fact, it’s part of what makes these seven stocks so attractive. That’s because in all my years of investing, I’ve found that it’s not… Read More

In April 2015, I recommended that my Top 10 Stocks readers buy Kraft Foods (Nasdaq: KRFT). Within 24 hours of my recommendation, the company received a takeover offer from The H. J. Heinz Company — backed by legendary investor Warren Buffett’s Berkshire Hathaway and Brazilian private equity giant 3G Capital. Powered by this top-tier endorsement as well as a considerable premium to market on the offer, Kraft soared 45% in two weeks following my recommendation. It was one of the most dramatic wins I’ve ever had the pleasure to be involved with. Read More

In April 2015, I recommended that my Top 10 Stocks readers buy Kraft Foods (Nasdaq: KRFT). Within 24 hours of my recommendation, the company received a takeover offer from The H. J. Heinz Company — backed by legendary investor Warren Buffett’s Berkshire Hathaway and Brazilian private equity giant 3G Capital. Powered by this top-tier endorsement as well as a considerable premium to market on the offer, Kraft soared 45% in two weeks following my recommendation. It was one of the most dramatic wins I’ve ever had the pleasure to be involved with. #-ad_banner-#But the truth is that my readers and I nearly missed out on the opportunity. Fortunately I paid attention to the right metrics. The fact is, the timing of my investment was complete serendipity. I had no inkling that a buyout was on tap for Kraft. Had I waited 24 hours to release my April issue, we would have missed the stock’s double-digit bounce entirely. But looking back, there were a number of indicators — some of which were downright glaring — that showed Kraft was ripe for this kind of lavish attention. Read More

Over the last decade, we’ve published thousands of in-depth research reports. Everything from high dividend payers, game-changing innovations, top stocks in emerging markets — you name it, we’ve told you how to profit from it. But the research I’m going to tell you about today stands head and shoulders above everything else we’ve ever done. In fact, it ranks as our single most popular report of all time. Each year, we update the report with our team’s most recent findings. And frankly, I think what we’ve come up… Read More

Over the last decade, we’ve published thousands of in-depth research reports. Everything from high dividend payers, game-changing innovations, top stocks in emerging markets — you name it, we’ve told you how to profit from it. But the research I’m going to tell you about today stands head and shoulders above everything else we’ve ever done. In fact, it ranks as our single most popular report of all time. Each year, we update the report with our team’s most recent findings. And frankly, I think what we’ve come up with this year represents a major breakthrough. We call it: “The 10 Stocks To Own For The Rest Of Your Life” #-ad_banner-#You’ve probably heard us talk about the idea of “Forever Stocks” before. Simply put, these are solid companies that we think you can feel confident buying and holding onto for years, even decades. And we believe they will continue rewarding investors for years on end… crushing the market over the long run. They’re the kinds of stocks you’d ideally want to own forever. Owning solid, stable companies… Read More

I make a ton of currency swaps in my line of work. It goes with the territory. But lately it’s been a harrowing experience. Many currencies around the world have been a mess for the last few months. The value of the British pound, for example, has dropped 13% against the dollar since July 2014. #-ad_banner-#At the same time, the Canadian dollar has plummeted 15% against its American counterpart. And the Colombian peso — another currency I’m frequently buying — is down an astounding 28% over the same period. I’ll admit… Read More

I make a ton of currency swaps in my line of work. It goes with the territory. But lately it’s been a harrowing experience. Many currencies around the world have been a mess for the last few months. The value of the British pound, for example, has dropped 13% against the dollar since July 2014. #-ad_banner-#At the same time, the Canadian dollar has plummeted 15% against its American counterpart. And the Colombian peso — another currency I’m frequently buying — is down an astounding 28% over the same period. I’ll admit it’s been quite a hassle lately. I almost ran out of pesos in the Colombian countryside recently because of it. But what has me really worried is how these “currency wars” are starting to effect businesses and stocks valuations around the world. Let me show you what I mean. A few months ago, in my premium advisory Top 10 Stocks, I discussed how the massive and often-unprecedented fluctuations in currency rates have been crushing profits and lowering the valuations of many of the world’s most well-known and established companies. I showed how over the… Read More

Sitting in front of me on my desk is history’s most popular brand. Every year this centuries-old brand sells $100 billion all around the world from the United States to Europe to India to China. It’s almost certainly the oldest brand known to mankind — with documented occurrences dating back over 6,000 years. And since its inception, the brand has moved an estimated $6.7 trillion worth of product, using today’s prices. The brand I’m talking about is gold. #-ad_banner-#The nugget of gold in front of me on my desk is the size of a quarter. Beside it, I have much… Read More

Sitting in front of me on my desk is history’s most popular brand. Every year this centuries-old brand sells $100 billion all around the world from the United States to Europe to India to China. It’s almost certainly the oldest brand known to mankind — with documented occurrences dating back over 6,000 years. And since its inception, the brand has moved an estimated $6.7 trillion worth of product, using today’s prices. The brand I’m talking about is gold. #-ad_banner-#The nugget of gold in front of me on my desk is the size of a quarter. Beside it, I have much larger pieces of other valuable minerals — copper, zinc and quartz, to name a few. But despite the utility of the latter materials, these samples are worth just a couple of dollars each. My small gold nugget would sell for more than $1,000. Physically and chemically, there’s really no reason for this difference. Certainly gold has some unique properties: it doesn’t tarnish, and it’s also extremely soft and easy to work into new forms. But the same is true of copper. And yet the metal sells for just $3 per pound, or about $45 per troy ounce, while the same… Read More