Author: Mike
-
Philip Fisher’s Common Stock Search
Warren Buffett credits Charlie Munger and Philip Fisher for guiding him away from investing in companies selling below book value and towards quality companies that grow slowly over time. Fisher describes the things he looks for in common stocks in his book Common Stocks and Uncommon Profits. Below is the list of 15 points to…
-
Can You Trust the Financial Statements?
As value and quality investors, company financials play a critical role in finding great companies and knowing what price to pay for them. One question that might come up during the due diligence period is, can we trust the numbers that are being presented by the company? While accounting standards set certain requirements for financial…
-
A Case Study on Tariffs
The 2024 presidential candidates have been floating new tax proposals to address the rapidly expanding federal debt. Former president Donald Trump has proposed imposing a tariff on foreign imports to help fund the government. Tariffs are usually favored by domestic manufacturers and labor unions because they increase the price of competitor’s products. However, there is…
-
How Peter Lynch One-Upped Wall Street
Peter Lynch was one of the most successful stock pickers of the 20thCentury. From 1977 to 1990, his Magellan Fund had an average return of29%. Just let that soak in for a minute: each $1 put into the fund in 1977 would have grown to over $27 by 1990! In his book, One Up On Wall…
-
Options Trading Not a Star Strategy
The general public has become more familiar with options trading thanks to Keith Gill’s trading in GameStop (GME), which made him millions of dollars in a relatively short amount of time using the market equivalent of lottery tickets. While options can generate outsized returns, they can also lead to wealth destruction. Options can be thought…
-
T-bills for short-term savings
Berkshire Hathaway had their annual meeting yesterday, and Warren Buffett disclosed that the company may have upwards of $200 billion in cash at the end of Q2. He also mentioned using 3- and 6-month Treasuries. T-bills and short dated government bonds are the best way to manage large cash positions like that of Berkshire due…