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3 Higher Yielding, Lower Risk Stocks To Perk Up Your Dividend Income

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As a society we have grown accustom to wanting it all, including our investments. Specifically, many income investors want both high yield and low risk. A dividend stock with a high yield doesn’t mean much if the dividend is cut or eliminated, and the stock price declines significantly. So can an investor find both higher yields and lower risks?...

Summer Of 69? No, Maersk Sings About The Drilling Company Of 1972

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  • AP Moller Maersk’s (AMKBY) drilling spinoff is set for early April and the new company will be called The Drilling Company of 1972.
  • The name reminds me of Sara Lee’s 2012 DE Master Blenders 1753 spinoff.
  • Must be a European thing or something and in any case, it’s an instant addition to the list of terribly named spinoffs.… Read More »

Moneylife Lecture

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  • I delivered my 4th Annual Moneylife Lecture recently.
  • You can watch it from here (paywall, no payments to me).

Talk on Fragility and Optionality in Business Models

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  • I recorded this talk over many sessions, thanks to Jatin Khemani, a value investor and a friend.

Tom Russo in India

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  • In December 2018, respected value investor Tom Russo was visiting India and CFA Society hosted him for a talk which I had the privilege of moderating.
  • You can see it from here .

Moneycontrol Podcast

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  • Santosh recorded the chat we had over breakfast and turned it into a four-part podcast.
  • You can listen to them from here:
  • Part 1 Part 2 Part 3 Part 4

Dispersion In Investing – The Gap Between The Best and Worst Stocks Is Closing

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  • Whereas in 2000, 99, 2000, 2001, you had a very very expensive average at like say 35 times earnings but the cheapest part was at seven or eight times earnings.
  • You had a very wide dispersion between cheap and average and cheap and expensive.
  • You can find out more about Tobias’ podcast here – The Acquirers Podcast .

11 Of The Best Books On Stock & Business Valuation

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  • We recently started a series called – Superinvestors: Books That Every Investor Should Read.
  • Together with our own 2018 recommended reading list of:
  • This week we’re going to take a look at eleven of the best books on stock and business valuation.

Wirecard AG: Something is Terribly Wrong Here

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  • The company’s Singaporean prosecutors are interested in — Hermes Tickets I, Great Indian Technology and Orbit Corporate & Leisure Travels — were first flagged as suspicious in the Southern Investigative Reporting Foundation’s investigation last year into Wirecard’s October 2015 230 million euro purchase of a hodgepodge of small, privately-held payments and e-commerce companies called Great Indian Retail.

Pre-suasion

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  • Though I was a huge fan of Influence, I kept pushing Cialdini's latest book Pre-Suasion further into my reading backlog.
  • I figured the first book pretty much covered the most important stuff so well...
  • [[ Please visit site to read more ]]

Week

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  • The fourth quarter revenue was really good ($7.4 million which was up from $6.5 million the previous quarter).
  • It turned out that Mission Ready was about to sign a merger deal with Unifire .
  • Apart from the fact that I firmly believe that I cannot take anything Patrick Byrne says at face value, the thing that has most kept me from getting behind Overstock again over the last 9 months or so has been this retail traffic problem.

The Benefits of Diversification

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  • Excluding Boeing’s defense contracting business, we have about 4.8%
    (more in our concentrated portfolio) of a client’s individual stock portfolio
    devoted to these four companies.
  • Another example is the cable company Charter Communications.
  • Sure, returns won’t be as high as funds that put 10%, 15% or even 30% of their
    portfolio in one stock.

Why I Am Selling Apple in the 180’s

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  • For many years Apple stock has gone through cycles whereby the valuation looks a lot like a hardware company (10-12x P/E ratio) at times when sentiment is skeptical, and a higher near-market multiple (mid teens) when investors are focused on services and other higher margin, recurring revenue streams.
  • Given that the iPhone’s share in the United States remains below 50%, despite it feeling as though everyone here has one, it should not be surprising that Apple has 25% market share in China, or just 1% market share in India.

UPDATE- Apple (AAPL): Number of Shares Sold Short Explodes

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  • The investment bank is now effectively SHORT.
  • The investment bank goes out to the open market and buys AAPL shares to cover its short position returning shares that it borrowed.
  • We should expect to see a significant reduction in Apple's share count when it reports 2Q19 results.

Fox In Stocks- Twenty First Century Fox In The Mouse House

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  • As we discussed last week, the big Disney (DIS) / Twenty First Century Fox deal is set to close this Thursday.
  • In the meantime, 21st Century Fox shareholders have made their choices about how they want to receive their ‘consideration’ from Disney and apparently too many wanted the cold, hard cash: Holders of 959,919,192 shares of 21CF common… Read More »

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