Rule No. 1 of investing is “Don’t lose money.” Investment advisers learn early in their careers, either through formal education or through unfortunate experience, that when interest rates rise, bond prices fall and bond holders lose money. The past three… Read More

There are stocks you can buy, and then there are stocks you just admire. These “admirable” companies are strong operators, generating consistent annual growth and always finding new paths to growth. But since they perennially perform so well and are so deeply admired by investors and analysts alike, you can… Read More

Without a doubt, it’s among the oddest investments I’ve researched. Normally I’m poring over classic income securities — stocks, bonds, funds, and the like. I’m concerned about payout ratios… interest rates… economic forecasts. This investment is different. You won’t find it on any exchange… Read More

The Russell 2000 Index, which is comprised of companies with small market capitalizations, is always seen as a solid proxy on the domestic economy. Smaller companies, which typically have market values between $300 million… Read More

In 1999, just months before his death, a respected geochemist named Leigh Price was working on a research paper that would soon send shockwaves through the energy sector. Dr. Price had spent much of his career with the US Geological Society (USGS) assessing the hydrocarbon potential in… Read More

With a slew of bad news recently hitting the streets, it appears fear is on the rise.  Unemployment rates remain high at 8.8%, housing sales are still slugglish and, despite an already weak U.S. dollar, the Federal Reserve is expected to keep interest rates near zero —… Read More

My oldest son was born in 1999. America was still experiencing what many believed was an endless nirvana of economic prosperity, so it’s no surprise that I sometimes jokingly referred to him as my “bull market baby.” With a generous gift from friends of the family… Read More

Shares of Netflix (Nasdaq: NFLX) remain within a few percentage points of their all-time high. The video-rental firm has had quite a run, with its shares up more than 150% in the past 12 months and nearly 1,000% in the past three years. Even lackluster forward guidance issued on the evening of Monday, April 25, only put a modest dent in this highflying stock. But behind the scenes, a major problem looms. And that problem’s name is Apple (Nasdaq: AAPL). Any day now, Apple is expected to announce the… Read More

Shares of Netflix (Nasdaq: NFLX) remain within a few percentage points of their all-time high. The video-rental firm has had quite a run, with its shares up more than 150% in the past 12 months and nearly 1,000% in the past three years. Even lackluster forward guidance issued on the evening of Monday, April 25, only put a modest dent in this highflying stock. But behind the scenes, a major problem looms. And that problem’s name is Apple (Nasdaq: AAPL). Any day now, Apple is expected to announce the formal  opening of a massive new data center in Maiden, N.C. This center has been ready to go for several months, with its opening possibly delayed by plans to start building an identical data center right next door. Why should investors care? Once these buildings are open for business, the entire Apple business model will see a complete overhaul. And Netflix may be in the company’s sights. For that matter,  a raft of other technology firms could see a completely altered competitive landscape as well. Before looking into Netflix, a few words about Apple. I had… Read More

The era of cost-cutting is over. This means it’s going to get harder for companies to show radical profit gains. Indeed, the pace of upside surprises in the first quarter of 2011 has modestly lagged previous quarters, according to Zacks.com. Yet some companies continue… Read More

Companies rightly see research and development (R&D) spending as a key measure of whether a product line is fresh and capable of capturing impressive pricing and margins. When that figure is low, it’s a sure sign a company is relying on older, possibly antiquated products to carry the day. And… Read More