FeedPosted Aug 6th 2009 5:00PM by Sheldon Liber (RSS feed)
Filed under: Ford Motor (F), Market matters, Getting started, Citigroup Inc. (C), Bargain stocks, Stocks to Buy, MBIA Inc (MBI)

You can learn a lot from your elders and when it comes to investing, you best listen very attentively. I often refer to
'my pal Warren' in my posts and I credit Mr. Buffett's investment advice and parables over the years for much of my gains in 2009.
There is another mentor, though, one I have not referred to often but that I have gleaned some wisdom from in terms of value investing and courage, and that is
'my pal Sir John.' While Buffett has been very straight forward in his position that you should buy on fear and this was the year to do that, it was Templeton that preached buying far and wide and diversifying broadly into out-of-favor companies. As he did when he started out.
Continue reading Ford, Citi, MBIA, GBE and Sir John Templeton
Posted Jul 31st 2009 5:00PM by Sheldon Liber (RSS feed)
Filed under: Rants and raves, Competitive strategy, Microsoft (MSFT), Ford Motor (F), Market matters, Money and Finance Today, Archer-Daniels-Midland (ADM), Chevron Corp (CVX), Nucor Corp (NUE), Options, BHP Billiton Ltd ADR (BHP), Wells Fargo (WFC), Bargain stocks, Anglo American (AAUKY), S and P 500, DJIA, Intuitive Surgical Inc (ISRG), American Eagle Outfitters (AEO)

Where on earth can you buy things on sale for less than bargain prices?
Imagine that you were shopping for a nice shirt, or watch, or bicycle and you have been tracking the prices all year (or ten) and the thing finally goes on sale. You drive to the store and while you are in transit, unknown to you, the store manager puts a half price sticker on the item. You would be overjoyed with glee! To buy something at half the price you already thought was a bargain --
that would be amazing!The fact is that this year the stock market has provided that opportunity. This year for the first time in most of our lives, you were able to do that to a degree that we have not witnessed before and have only read about.
Continue reading Serious Money: The world's dumbest market
Posted Jun 29th 2009 12:00PM by Sheldon Liber (RSS feed)
Filed under: Microsoft (MSFT), Johnson and Johnson (JNJ), Chevron Corp (CVX), General Mills (GIS), Bargain stocks, Serious Money, Stocks to Buy, Southern Company (SO)
Billions of investment dollars are sitting on the sidelines for fear of entering the market at the wrong time and losing more money after taking a bath last year. However, the market seems to have hit bottom last March and many investors missed the 40% gain from that point to now.
Market prognosticators are spewing out opinions faster than the public can grasp, or understand. I choose to stick with basic fundamental value propositions and ignore the noise.
I have been buying for the past eight months and riding the market waves, good and bad, to huge gains -- so far. Maybe I will be giving some back, maybe not, but I have also been encouraging readers to take something off the table, in several recent posts.
Continue reading Serious Money: Five high-yield, safe, diversified stocks
Posted Jun 22nd 2009 9:40AM by Sheldon Liber (RSS feed)
Filed under: International markets, Competitive strategy, Market matters, BHP Billiton Ltd ADR (BHP), Rio Tinto plc ADS (RTP), Bargain stocks, Serious Money, Commodities, Anglo American (AAUKY), Aluminum Corp of China ADS (ACH), Stocks to Buy, Best Stocks for 2009

It was reported on Sunday, June 21, that Anglo-Swiss mining company
Xstrata has proposed a merger of equals to the board of
Anglo American ADR (NASDAQ:
AAUK), hoping to create a new, more competitive mining giant. Rumors have been milling about for a while.
Together, Anglo American and Xstrata would have a market capitalization of approximately $68 billion, (AAUK's $35 billion + XTA.L's $33 billion) and be larger than
Rio Tinto plc ADS (NYSE:
RTP), which ended the trading day last Friday with a capitalization hovering over $42 billion.
Continue reading Serious Money: Anglo American - Xstrata merger?
Posted Jun 19th 2009 2:20PM by Sheldon Liber (RSS feed)
Filed under: International markets, Market matters, Diageo plc (DEO), Bargain stocks, Stocks to Buy

This should not shock anyone that has followed the market for any length of time or is simply a student of human nature, but
Diageo PLC (NYSE:
DEO) the largest distiller and distributor of alcoholic beverages in the world is moving up when the market is moving down.
The London Financial Times under the headline
Markets are giving the devil his due reports on two new independent US academic studies by Frank Fabozzi, a finance professor at Yale, and Harrison Hong, a Princeton professor, touting the benefits of investing in "sin stocks" associated with alcohol, tobacco and gaming. They surmise that many pension funds, and conservative investors "looking to maintain an aura of respectability." do not invest in these types of companies leaving them to others. These companies also tend to be more highly taxed and regulated, which limits competition somewhat.
Continue reading Sin stocks are blessed -- Diageo rewarding investors
Posted Jun 16th 2009 1:40PM by Sheldon Liber (RSS feed)
Filed under: Analyst upgrades and downgrades, Getting started, AT and T (T), Verizon Communications (VZ), Bargain stocks, Comfort Zone Investing, Chasing Value, Stocks to Buy

Nothing is worse than repeating past mistakes. Despite the awful economy, my newest portfolio is doing better than any other since 1999-2000, actually passing a 100% gain recently, although it has dropped back slightly with the market the past few trading days.
Ten years is recent enough for me to remember giving everything back and then some. I'm not doing that again. But what to do? I certainly do not like sitting with a heavy cash position collecting almost nothing. I have recently discussed this issue, see:
Serious Money: ETF that's better than cash.
The solution is to find stocks that have low volatility, high yields, and the recurring revenue and strong cash flow to maintain the yield. Long term investors will not be surprised by my search leading me to
AT and T (NYSE:
T) and
Verizon Communications (NYSE:
VZ), the two largest communications companies in the land.
Continue reading Chasing Value: AT&T and VZ, high yield plus safety
Posted May 8th 2009 12:30PM by Sheldon Liber (RSS feed)
Filed under: Earnings reports, Products and services, Industry, Bargain stocks, Chasing Value, Best Stocks for 2009, Olin Corp. (OLN)
Most people probably have not heard of the Olin Corp (NYSE: OLN), even though it has been in business in the United States since 1892 (127 years!), and has been selling ammunition under the 140-year-old Winchester brand since it acquired the company 76 years ago.
While Olin has been around a long time, it does not get much attention. It is only capitalized at $1 billion and much of what it sells is far from glamorous. It also does more wholesale than retail business. However, investors should remember this: Olin pays a safe 5% yield!
Continue reading Chasing Value: 5% yield from Olin, a 'boring' old company
Posted Apr 30th 2009 11:30AM by Sheldon Liber (RSS feed)
Filed under: Google (GOOG), Microsoft (MSFT), Apple Inc (AAPL), Berkshire Hathaway (BRK.A), Bargain stocks, Serious Money, Williams Companies (WMB)
This week I have been evaluating the Williams Companies Inc. (NYSE: WMB), a stock that I think would make a good core holding for anyone seeking a dependable dividend, growth potential, and relatively low risk given its current price.
The price was $13.77 when I started the series and $13.00 when I myself bought in.
After the first three posts, I hope the case has been made, but we will continue nevertheless looking at Apple Inc. (NASDAQ: AAPL), Google Inc. (NASDAQ: GOOG) , Microsoft Corp. (NASDAQ: MSFT), and Berkshire Hathaway Inc. (NYSE: BRK.B) for more supporting evidence.
Continue reading Serious Money: Better than Apple, Google, Microsoft & Berkshire Hathaway, Part 4
Posted Apr 28th 2009 3:40PM by Sheldon Liber (RSS feed)
Filed under: Google (GOOG), Microsoft (MSFT), Apple Inc (AAPL), Berkshire Hathaway (BRK.A), Bargain stocks, Serious Money, Williams Companies (WMB)
In my first post on the subject yesterday, I discussed some of the advantages that Williams Companies Inc. (NYSE: WMB) might have over more popular stock "brands" like Apple Inc. (NASDAQ: AAPL), Google Inc. (NASDAQ: GOOG), Microsoft Corp. (NASDAQ: MSFT) and Berkshire Hathaway Inc. (NYSE: BRK.B) -- all great companies.
I highlighted the yield, book value, and spread between natural gas and oil, concluding that even "my pal Warren" would prefer Williams. Today I continue to look at the various valuation metrics one might contemplate in examining a stock's potential.
Continue reading Serious Money: Better than Apple, Google, Microsoft & Berkshire Hathaway, Part 2
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