Most investors would like a "do over."

They look back on certain investments and wish they'd never heard of, much less put money in them. Sure things like your good friend's invention that would make beer in one day from water and weeds. Or your brother's idea of selling real estate on Saturn. Everyone has their own stories. Mine are usually related to private investments in the medical device field or biotech, though I did have one out of Florida that made a "pig" that ran through oil pipelines to check on their safety. After meeting the founder who looked more like a used car salesman that caught a great sale on polyester suits, I should have known better right then. But I didn't.

Continue reading Comfort Zone Investing: If I Could Start All Over Again ...

Comfort Zone Investing: If I Could Start All Over Again ... originally appeared on BloggingStocks on Sat, 02 Apr 2011 10:30:00 EST. Please see our terms for use of feeds.

With several major developments occurring around the world, many investors may wonder how they could affect their portfolios or their lives. Here are two of the current, newsworthy events and how investors may interpret them.

Libya

The oil from Libya totaled about 2 million barrels a day before the revolution, half of which was exported. About 1 million barrels a day are no longer available to the world. That isn't enough to really affect the price of oil for a long period of time. Plenty of other countries can supply that amount without straining their capacity. But they're unlikely to step in to fill the gap when oil prices are above $100 a barrel. That price should recede once the conflict finishes and a more stable government is in place.

Continue reading Comfort Zone Investing: Libya and Japan -- What They Mean for Investors

Comfort Zone Investing: Libya and Japan -- What They Mean for Investors originally appeared on BloggingStocks on Sat, 26 Mar 2011 10:30:00 EST. Please see our terms for use of feeds.

The Japanese devastation is almost incomprehensible. First there was the earthquake, followed by the tsunami, followed by radiation. It seems the disaster has no end. The people are suffering beyond imagination. It will be a long time for the country to heal. In the north, it will take decades.

Investors are trying to understand what the economic aftershocks will be. Which industries will be hurt and which ones will benefit? Because the crises change from day to day, it's extremely difficult to ascertain. But there are a few themes that seem to be emerging. Some of these will be short lived, such as the closing of the Japanese auto manufacturers. While they will lose days of production, the long-term effect will be minor, unless supplies are interrupted, causing further delays.

Continue reading Comfort Zone Investing: Aftershocks of the Disaster in Japan

Comfort Zone Investing: Aftershocks of the Disaster in Japan originally appeared on BloggingStocks on Sat, 19 Mar 2011 10:30:00 EST. Please see our terms for use of feeds.

Banks are back in the news -- in a good way. Speculation is that mergers and acquisitions will be picking up, so are profits. Some are looking to raise their dividend and/or buy back more shares. Bank of America (BAC) is one of them.

The CEO, Brian Moynihan, announced that B of A wasn't looking to buy other banks. Instead, the bank would be focused on returning more capital to shareholders in the form of a regular dividend (now 4 cents a year), share buybacks and special cash dividends. The reason: he feels the bank will earn between $35 billion and $40 billion a year (yes, billion ... a year) in pretax earnings when the business normalizes. (But there's the catch: when does business get to normal?)

Continue reading Comfort Zone Investing: Are the Banks Back?

Comfort Zone Investing: Are the Banks Back? originally appeared on BloggingStocks on Sat, 12 Mar 2011 10:30:00 EST. Please see our terms for use of feeds.

Warren Buffett, world's best stock investor, writes an annual letter to shareholders of Berkshire Hathaway (BRK.A), the holding company in which he does all of his investing. Fortunately for the world, he publishes it for everyone to read. While it is full of good investment advice, it also shows the Oracle of Omaha has a great sense of humor and a lot of wisdom. Here are some excerpts from his latest 2010 annual letter.

On uncertain times: "Money will always flow toward opportunity, and there is an abundance of that in America. Commentators today often talk of 'great uncertainty.' But think back, for example, to December 6,1941, October 18, 1987 and September 10, 2001. No matter how serene today may be, tomorrow is always uncertain."

Continue reading Comfort Zone Investing: The Oracle of Omaha Is Optimistic

Comfort Zone Investing: The Oracle of Omaha Is Optimistic originally appeared on BloggingStocks on Sat, 05 Mar 2011 10:30:00 EST. Please see our terms for use of feeds.

Continue reading Comfort Zone Investing: Bubbles Always Burst

Comfort Zone Investing: Bubbles Always Burst originally appeared on BloggingStocks on Sat, 26 Feb 2011 10:30:00 EST. Please see our terms for use of feeds.

The perfect stock suggests that it would fit in any portfolio at any time. That perfect stock doesn't exist. Some investors want capital gains from growth only. Others want income. Still others want some of both. So can there be a perfect stock?

There is for each group of investors. For the ones looking for capital gains, the stock would have these attributes:

Continue reading Comfort Zone Investing: The Perfect Stock

Comfort Zone Investing: The Perfect Stock originally appeared on BloggingStocks on Sat, 19 Feb 2011 10:30:00 EST. Please see our terms for use of feeds.

Coca-Cola (KO) has more than $13 billion in cash.

The top five companies (according to market cap) are:

• Exxon Mobil (XOM): $398.3 billion
• Apple (AAPL): $309.0 billion
• Microsoft (MSFT): $237.5 billion
• General Electric (GE): $215.0 billion
• Berkshire Hathaway (BRK.A): $202.5 billion

Continue reading Comfort Zone Investing: Did You Know ... ?

Comfort Zone Investing: Did You Know ... ? originally appeared on BloggingStocks on Sat, 05 Feb 2011 10:30:00 EST. Please see our terms for use of feeds.

If you think the economic recovery is just beginning, then these three stocks will benefit. They've just released their earnings so you can see how they've fared even in these tough times. They all share positive attributes: plenty of cash, growing sales and earnings, and a dividend.

General Electric (GE): This stock has been a frustration for years. It cut the dividend. The price went from $38 a share to $8 from 2008 to 2009. Now it's coming back. The latest quarterly and annual reports for 2010 confirm the company's finally seeing better demand for most of its products and services.

GE mirrors the economy because it's in so many different parts of it. Here are only some of its offerings: jet engines, light bulbs, credit, mortgage finance, appliances, power plants, locomotives, electric distribution and control equipment, generators and turbines, real estate, commercial finance, aircraft leasing, NBC Universal, health care and several more. When the economy does well, so does GE.

Continue reading Comfort Zone Investing: Ride the Recovery with These Three Stocks

Comfort Zone Investing: Ride the Recovery with These Three Stocks originally appeared on BloggingStocks on Sat, 29 Jan 2011 10:30:00 EST. Please see our terms for use of feeds.

All investors start at the beginning. They know very little, maybe nothing, but they see the stock market can make them money, big money. It can also take all their money and never even say thank you. If you're just starting out as an investor, follow these guidelines to help you minimize your mistakes and maximize your money.

First, understand that you are stepping into a world many have spent decades deciphering. You are a novice. You know nothing about the landmines that lie beneath. There are many and they can (and will) explode at any moment, usually the moments when you least expect them. Investing is fraught with danger like bankruptcies (even huge companies ... see GM), crooked management (very rare but when caught, very expensive ... to you), and many other disappointments that will cause sleepless nights. Scared? Good. You should be. Now you're in the right frame of mind.

Continue reading Comfort Zone Investing: The Path to Investing Wisdom

Comfort Zone Investing: The Path to Investing Wisdom originally appeared on BloggingStocks on Sat, 22 Jan 2011 10:30:00 EST. Please see our terms for use of feeds.

Economies go in cycles. They push to their breaking points, then move in the opposite direction. We saw it clearly in the '90s when there was no end to up (except there was and we abruptly hit it in 2000). In 2008, it felt like there was no end to down. But we now know there is. Things are picking up, and there are numbers to prove it.

Don't be the last to figure out we're in an economic recovery. Sitting on the sidelines, waiting for one more chance to buy a stock at the bargain price you saw in March of 2009 isn't going to happen. Times have changed. The U.S. economy is on the mend.

Continue reading Comfort Zone Investing: Can You Feel the Pendulum Swinging?

Comfort Zone Investing: Can You Feel the Pendulum Swinging? originally appeared on BloggingStocks on Sat, 15 Jan 2011 10:30:00 EST. Please see our terms for use of feeds.

Investors spend most of their time looking for a great stock, anxious to buy one before others discover what they have. But equally important is knowing when to sell or when not to buy a stock. Here are a few red flags that stocks wave, no matter how good their numbers.

Dividends Are Very High. Stocks paying a dividend are a smart part of any portfolio. But when those dividends are much higher than average payments from companies in their industry, that's a problem waiting to happen. For example, if the average payment from the utility sector is 4% and the one you own is paying 10%, most likely the company's in trouble. Investors are selling the stock for a reason, making the dividend go ever higher (yield is: annual dividend/price ... the lower the price, the higher the yield). Sometimes the reasons for selling aren't known but become apparent after the quarterly earnings report. Or an announcement is made such as losing a contract that explains the downward pressure.

Continue reading Comfort Zone Investing: When Stocks Wave Red Flags

Comfort Zone Investing: When Stocks Wave Red Flags originally appeared on BloggingStocks on Sat, 08 Jan 2011 10:30:00 EST. Please see our terms for use of feeds.

The stage is set for a recovery in certain industries. They've been hit hard the last three years, pounded by a slow economy. But now things are starting to change, and if you believe the worst is over, then these sectors should see good advances in 2011.

Car Companies: They're hiring. Toyota Motors (TM) just announced the re-opening of its Mississippi plant after being dormant for two years. It needs 2,000 workers. GM (GM) is hiring 1,000 engineers and researchers in Michigan over the next two years focused on hybrid and electric cars. Chrysler is looking for 1,000 engineers and others to create small and midsize vehicles in its partnership with Italy's Fiat. Fiat controls Chrysler. Ford is the most healthy of the U.S. producers, having never touched government funds.

Continue reading Comfort Zone Investing: Two Industries Set to Recover in 2011

Comfort Zone Investing: Two Industries Set to Recover in 2011 originally appeared on BloggingStocks on Sat, 01 Jan 2011 10:30:00 EST. Please see our terms for use of feeds.

Yes, there is a secret ingredient to a successful stock. It's called great management. No company sustains superior growth without management that is focused and honest. That last part is crucial. Ask investors in Tyco, Enron, or the old MCI. As Warren Buffett once said, ""In looking for people to hire, look for three qualities: integrity, intelligence, and energy. And if they don't have the first, the other two will kill you. If you hire somebody without the first, you really want them to be dumb and lazy." You're hiring a company's management when you buy a stock. Here are two measures to help determine how well they're doing.

Continue reading Comfort Zone Investing: One Thing All Great Stocks Have

Comfort Zone Investing: One Thing All Great Stocks Have originally appeared on BloggingStocks on Sat, 25 Dec 2010 10:30:00 EST. Please see our terms for use of feeds.

Some positive signs are blowin' in the wind. Maybe they're enough to underpin a real recovery. Maybe not. But they are definitely positive, and together, may be the foundation of a stock rally with some strength. Here are some of them.

Dividends: General Electric (GE), Weyerhaeuser (WY) and many other companies are raising theirs. GE's quarterly dividend went from 10 cents a share early this year to 12 cents to 14 cents. If you own it by December 27, you'll get it on January 25. GE is almost a surrogate for the economy as a whole since it has so many divisions, offering many products and services. When GE raises its dividend it means the board and management see better times ahead. Companies hate to raise or initiate dividends only to rescind them a few months or even a year later. They know some investors buy the stock for income, and if that shrinks, those investors sell, push the price down and move to another stock. Watch for more companies to raise their payouts (especially banks). It's a sure sign they see better earnings ahead.

Continue reading Comfort Zone Investing: Better News Is Blowin' in the Wind

Comfort Zone Investing: Better News Is Blowin' in the Wind originally appeared on BloggingStocks on Sat, 18 Dec 2010 10:30:00 EST. Please see our terms for use of feeds.

Nobody knows what the future holds. But there are a few things shaping up that suggest certain things will most likely happen. Here are some of the major ones.

Interest Rates: Low at the beginning of the year, then headed higher for a long time. If you have an adjustable rate mortgage and you're still paying it, it's the perfect time to get it refinanced, if you can qualify. Interest rates are definitely going up; it's just a matter of when. As long as the Fed is pumping money in (QE2 is targeted with $800 billion .... with the possibility of more behind it), rates will stay low, unless investors think inflation will get way out of hand. Then rates will go higher no matter what the Fed does as investors sell longer term bonds to beat the coming inflation. Initially, rising interest rates will be bullish as they are a precursor to a healthy economy. But that bull will morph and become a bear when rates start jumping as the Fed tries to get ahead of inflation. Tricky business. Investors will do well to have floating rate assets and fixed rate liabilities.

Continue reading Comfort Zone Investing: What Lies Ahead For 2011 ... Maybe

Comfort Zone Investing: What Lies Ahead For 2011 ... Maybe originally appeared on BloggingStocks on Sat, 11 Dec 2010 10:30:00 EST. Please see our terms for use of feeds.

Plans. They're something other people make, right? And what's the use of a plan when the stock market is so volatile? You can watch a stock take years to rise well above where you bought it, only to see all that gain lost in a matter of hours. Plans. Who needs them? You do. Especially you.

Investors need plans and discipline more than ever. It's been a tough few years. No one knows how long this recession will last, but having a plan that is almost (nothing is absolute in investing) bulletproof will help you get through the roughest days, weeks, months, even years of turmoil. Here's where you start:

Continue reading Comfort Zone Investing: Do You Have a Plan?

Comfort Zone Investing: Do You Have a Plan? originally appeared on BloggingStocks on Sat, 04 Dec 2010 10:30:00 EST. Please see our terms for use of feeds.

Banks were sick for a while. Some of them died (41 in the third quarter alone, a total of 127 so far this year), quickly taken over by the FDIC (Federal Deposit Insurance Corp.), transferring their ticket to ride to another institution that changed the name on the front door (but kept the FDIC sticker) over a weekend. More will evaporate. There are currently 860 on the FDIC's list of problem institutions as of September 30. That compares to 829 at the end of June. But the latest bank profits suggest the worst is over for the banking sector.

Continue reading Comfort Zone Investing: Time to Buy Banks?

Comfort Zone Investing: Time to Buy Banks? originally appeared on BloggingStocks on Sat, 27 Nov 2010 10:30:00 EST. Please see our terms for use of feeds.

Most good deeds never go unpunished. That's certainly the case for the latest effort from the Federal Reserve (the Fed). It wants to pump $600 billion into the economy to keep interest rates low and spur growth. It's called quantitative easing (QE). Unfortunately, that's not how investors are interpreting its latest move. They're seeing it as yet another failed, inflationary, dollar degrading stunt that won't do anyone any good.

As you may remember, the Fed has already injected quite a bit of money into the system through the QE1 program. That was announced back in November of 2008. The Fed declared it would purchase direct obligations of housing-related government sponsored enterprises (GSEs) -- Fannie Mae, Freddie Mac and the Federal Home Loan Banks -- and mortgage backed securities (MBS) backed by Fannie, Freddie and Ginnie Mae. Purchases of up to $100 billion in GSE direct obligations through the Fed's primary dealers (big Wall Street firms and banks) through competitive auctions. Purchases of up to $500 billion in MBS by asset managers selected by a competitive process. Buying to begin by year-end, 2008, and expected to last for several quarters.

Continue reading Comfort Zone Investing: The QE2 Is Sinking

Comfort Zone Investing: The QE2 Is Sinking originally appeared on BloggingStocks on Sat, 20 Nov 2010 10:30:00 EST. Please see our terms for use of feeds.

General Motors is about to go public again. Speculation is that the stock will be priced between $26 and $29 a share, depending on demand and how much stock is sold. Is this a good investment for the average investor?

I don't know. I haven't seen the prospectus so I can only tell you what I've read so far. Much of what you would be buying is the future, and well, that's in the future where many things can happen.

Continue reading Comfort Zone Investing: Should You Buy GM?

Comfort Zone Investing: Should You Buy GM? originally appeared on BloggingStocks on Sat, 13 Nov 2010 10:30:00 EST. Please see our terms for use of feeds.