Even though we can anticipate billions of dollars in claims there still are buying opportunites.

Continue reading Chasing Value: Insurance Stock Review -- Part 3

Chasing Value: Insurance Stock Review -- Part 3 originally appeared on BloggingStocks on Mon, 28 Mar 2011 10:30:00 EST. Please see our terms for use of feeds.

"For good reason, there are hundreds of investment managers who are devout Warren Buffett-style value investors," observes Ian Wyatt.

The editor of The 100K Portfolio explains, "From 1965 to 2010, under Buffett's leadership, Berkshire Hathaway (BRK.A or BRK.B) has seen it's per share book value increase at an annual rate of 20.2 percent.

"Since Warren Buffett is now 80 years young, and his partner Charlie Munger is 87, the future leadership of Berkshire is certainly a concern.

Continue reading Berkshire Hathaway Offers Vision and Value

Berkshire Hathaway Offers Vision and Value originally appeared on BloggingStocks on Mon, 28 Mar 2011 10:00:00 EST. Please see our terms for use of feeds.

Do you have any interest in insurance companies amidst the turmoil, disaster and current crises in Japan? A crises that followed so closely on the heals of the destruction of the New Zealand city of ChristChurch by a 6.3 magnitude earthquake. Perhaps you think this is even a poorer idea than catching that proverbial falling knife we are always hearing about when stock prices are collapsing.

Certainly there will be billions of dollars in claims. On the other hand, perhaps the burden will be spread around the globe to reinsurer's such that none is struck too hard and this is a buying opportunity. After all, when the dust settles, insurers will cry for mercy, and in particular, rate increases. It is also likely those that never saw the need for insurance have been awakened and demand will increase.

Continue reading Chasing Value: Insurance Stock Review -- Part 2

Chasing Value: Insurance Stock Review -- Part 2 originally appeared on BloggingStocks on Fri, 18 Mar 2011 15:00:00 EST. Please see our terms for use of feeds.

Continue reading Chasing Value: Insured Profits or a Mountain of Risk?

Chasing Value: Insured Profits or a Mountain of Risk? originally appeared on BloggingStocks on Mon, 14 Mar 2011 15:00:00 EST. Please see our terms for use of feeds.

This is the fourth update to my ranting eight months ago that acquiring six of the most hated, and most highly traded stocks with constant negative headlines would outperform the overall market. The theory has born fruit as the toxic stocks are ahead and the difference is increasing over time.

Continue reading Chasing Value: Toxic Stock Update #4 -- BAC, BP, C, GE, GS, RIG

Chasing Value: Toxic Stock Update #4 -- BAC, BP, C, GE, GS, RIG originally appeared on BloggingStocks on Fri, 11 Mar 2011 15:00:00 EST. Please see our terms for use of feeds.

When dealing with large companies, have you ever felt you were living through a scene from a Seinfeld episode?

In January Wells Fargo (WFC) completed a majority of its integration with Wachovia, and I fear it will take years working out the bugs in the system. I say this because I am a major client, shareholder and trader dealing with the company on numerous levels, and the past few weeks would be comedic if not so infuriating.

Continue reading Chasing Value: Wells Fargo, a Seinfeld Episode?

Chasing Value: Wells Fargo, a Seinfeld Episode? originally appeared on BloggingStocks on Thu, 10 Mar 2011 12:00:00 EST. Please see our terms for use of feeds.

Continue reading Serious Money: Buffett's Next Buys -- You Pick'em

Serious Money: Buffett's Next Buys -- You Pick'em originally appeared on BloggingStocks on Fri, 04 Mar 2011 15:00:00 EST. Please see our terms for use of feeds.

Fortune has released its list of the world's 50 most respected companies and once again Apple Inc. (AAPL) tops the list.

This is the fourth year in a row that the Cupertino based company has grabbed the top slot. Apple's respect comes mainly due to the company's ability to release new products at an amazingly quick pace, often updating its main product lines at least once a year.

Continue reading Apple Still Fortune's Most Respected Company

Apple Still Fortune's Most Respected Company originally appeared on BloggingStocks on Thu, 03 Mar 2011 17:30:00 EST. Please see our terms for use of feeds.

Warren Buffett's Berkshire Hathaway (BRK.A) is sitting on $38 billion in cash. Buffett sent a 26-page letter to investors on Saturday, describing his forthcoming goals for this year. Some highlights of the letter are reported in Reuters.

First off, like many other large corporations Berkshire Hathaway has been hoarding cash. Now, Buffett feels that it's time to invest his bundle. He is actively searching for big deals. Reuters quotes him as saying: "Our elephant gun has been reloaded, and my trigger finger is itchy."

Continue reading Buffett's 'Trigger Finger Is Itchy' for Deals

Buffett's 'Trigger Finger Is Itchy' for Deals originally appeared on BloggingStocks on Tue, 01 Mar 2011 10:20:00 EST. Please see our terms for use of feeds.

Continue reading Berkshire Hathaway Rises on Buffett's Outlook and Q4 Earnings

Berkshire Hathaway Rises on Buffett's Outlook and Q4 Earnings originally appeared on BloggingStocks on Mon, 28 Feb 2011 13:30:00 EST. Please see our terms for use of feeds.

The past week's data-point-of-consequence for investors had to be investment decisions by Warren Buffett's Berkshire Hathaway (BRK.A).

Buffett ended positions in several stocks in the fourth quarter, including the Bank of America (BAC), Nike (NKE), Fiserv (FISV), Becton Dickinson (BDX), Comcast Corp. (CMCSA), Lowe's Co.s (LOW), Nalco (NLC) and Nestle (NSRGY), according to a filing, The Wall Street Journal reported.

Berkshire added to a holding of only one stock in the fourth quarter: Wells Fargo (WFC).

Continue reading Tell-Tale Stat: Buffett's Berkshire Divests Bank of America, Nike Stakes

Tell-Tale Stat: Buffett's Berkshire Divests Bank of America, Nike Stakes originally appeared on BloggingStocks on Sat, 19 Feb 2011 14:00:00 EST. Please see our terms for use of feeds.

There is no shortage of analysis on the investment techniques of Warren Buffett. It seems that the books about him could fill a library!

However, when looking at his principles, it is not always easy to figure out how he prioritizes things. Of course, few companies have all the criteria.

Well, according to an interview with the Financial Crisis Inquiry Commission recently, Buffett gave some interesting insight on this.

Continue reading Buffett Talks About His Investment Secret Sauce

Buffett Talks About His Investment Secret Sauce originally appeared on BloggingStocks on Fri, 18 Feb 2011 14:30:00 EST. Please see our terms for use of feeds.

The market is getting gently hammered today, but that only presents more opportunities from my perspective.

I am in Ixtapa, Mexico, nearing the conclusion of my first ever week long rest during a 35 year working career ... and counting. In some ways I am hoping to mold my future working environment from seashore to shining seashore -- all around the world -- taking advantage of modern technology. I am thinking of it as "have beach (+Internet), will travel."

Continue reading Chasing Value: Profiting from Ixtapa -- Buffett, Gold, Oil, Options and More

Chasing Value: Profiting from Ixtapa -- Buffett, Gold, Oil, Options and More originally appeared on BloggingStocks on Fri, 28 Jan 2011 17:30:00 EST. Please see our terms for use of feeds.

Berkshire Hathaway (BRK.B) overall option implied volatility of 21 is below its 26-week average of 24, according to Track Data, suggesting decreasing price movement for Warren Buffett's conglomerate.

Wendy's/Arby's (WEN) overall option implied volatility is at 40, below its 26-week average of 47, according to Track Data, suggesting less risk into its investor's day on January 27.

Options Update is by Stock Specialist Paul Foster of theflyonthewall.com.

Options Update: Berkshire Hathaway Volatility at Low End of Range originally appeared on BloggingStocks on Wed, 26 Jan 2011 09:00:00 EST. Please see our terms for use of feeds.

This is the fifth year that I am posting my stock picks for the year. There is a lot of foolishness in doing so because each year that I have made such suggestions, including 2009 when I owned all of the picks, it is assumed that I would hold all of the positions without responding to market conditions, or changes in the specific company. No adding to, or cutting a position. This is not the real world.

It is not possible for everything to remain static. For example, you might find that you hold a stock that made a great run through three quarters, beyond your wildest expectations, and decide it has passed a point where the metrics cannot support anything close to the price. Under normal circumstances you might sell it, except you cannot. By the end of the year the profit you might have realized fades away and you end up reporting on something that is not a true measure of your objective strategy. Nevertheless, once again I will stick with this approach because this seems to be how its done in every publication's annual picks. This year there are eleven.

Continue reading Chasing Value: 2011 Stock Picks -- 5 of 11

Chasing Value: 2011 Stock Picks -- 5 of 11 originally appeared on BloggingStocks on Wed, 05 Jan 2011 14:00:00 EST. Please see our terms for use of feeds.

The year 2010 has come and gone and my results are in. This is my fourth annual stock results to be reported on BlogginStocks, so something of a track record is starting to form. This past year ended with a modest improvement over the unmanaged Standard & Poors 500 index

The original story, Chasing Value: 10 Stock Picks for 2010, took readers through a review of many candidates, concluding with the ten picks, using prices from Dec. 28, 2009.

Continue reading Chasing Value: 2010 Final Review -- Winners and Losers

Chasing Value: 2010 Final Review -- Winners and Losers originally appeared on BloggingStocks on Tue, 04 Jan 2011 12:00:00 EST. Please see our terms for use of feeds.

Could a stock that you made 1,100% on still have room to run? Yes, it is possible. In particular if it had a near death experience as a penny stock for a while.

That is the case with Newcastle Investments (NCT), the CMBS lender and real estate investment company that reached a recent high of $7.10 and has settled back down, most recently hovering between $6.70 to $7.00. It closed Thursday December 23 at $6.71.

Continue reading Chasing Value: 2011 Stock Picks -- Part 2

Chasing Value: 2011 Stock Picks -- Part 2 originally appeared on BloggingStocks on Mon, 27 Dec 2010 12:00:00 EST. Please see our terms for use of feeds.

The list of stocks under consideration has been reduced from eleven to ten, to seven and now in today's story four. Starting with five major defense contractors and six major oil companies (see Chasing Value: You Must Own Defense and Oil for Safety), I began a search to find one stock in each sector that might be suitable for inclusion in my list of 2011 stock picks posted last week Chasing Value: 2011 Stock Picks -- The Journey Begin.

Today we continue our analysis by examining return on equity (ROE), return on invested capital (ROIC), and price-to-earnings-to-growth (PEG). Each stock is ranked by sector and metric from best to worst. Sometimes there are clear winners and others there is little to separate one stock from the next. However, in total, a picture can be drawn that does portray a superior opportunity.

Continue reading Chasing Value: Defense and Oil -- Part 3

Chasing Value: Defense and Oil -- Part 3 originally appeared on BloggingStocks on Thu, 16 Dec 2010 12:20:00 EST. Please see our terms for use of feeds.

Banks could face another mortgage crisis, according to Barron's, if they are forced to buy back subprime, Alt-A and options adjusted home mortgage securities they've sold prior to the financial crisis, mostly as mortgage-backed securities. Already some buyers, like Fannie Mae (FNMA) and Freddie Mac (FMCC), have enjoyed some success returning defective mortgages. And this could be just the beginning.

The banks, of course, are fighting vigorously to fend off these demands. As usual, the courts will have to settle the matter. The focus of the debate seems to be founded on the issue of representations and warranties that may or may not have been violated.

There are no surprises among the 11 banks mentioned. It is the conspicuous absence of names you might expect to find that is.

Continue reading Chasing Value: Banks, Barron's and Buffett

Chasing Value: Banks, Barron's and Buffett originally appeared on BloggingStocks on Fri, 26 Nov 2010 10:00:00 EST. Please see our terms for use of feeds.

"Berkshire Hathaway class B (BRK.B) recently made waves when the conglomerate announced that it had hired hedge fund manager Todd Combs to take over a 'significant portion' of its huge investment portfolio," notes Geoffrey Seiler.

The editor of BullMarket.com explains, "Nevertheless, the stock remains a a buy on our Recommended List. Here's a look at the situation.

"Berkshire CEO Warren Buffett, of course, is considered one of the top investment managers of all time. However, the Oracle of Omaha is now 80 years old, and he won't be around forever.

Continue reading Berkshire Hathaway (BRK.B): A New Manager?

Berkshire Hathaway (BRK.B): A New Manager? originally appeared on BloggingStocks on Tue, 02 Nov 2010 13:20:00 EST. Please see our terms for use of feeds.