Value Investing News

Warren Buffett, the world's greatest investor, recently released his 2010 letter to shareholders. Here are 5 points of wisdom that investors can learn from it.

The Coca-Cola Company is the world's largest soft drink company. It engages in the manufacture, distribution, and marketing of nonalcoholic beverage concentrates, fruit juices and syrups worldwide. linked here is a detailed analysis and commentary.

Warren Buffett is arguably the best investor in the world. His main holding, Berkshire Hathaway has delivered market beating returns during his leadership. Buffett’s strategy is characterized by purchasing stocks which have a long-term durable competitive advantage in a stable industry.

Last year I introduced the Stock Ideas list and it has proven to be immensely popular. The list consists of Dividend Aristocrats, US Broad Dividend Achievers and U.S. Dividend Champions. Here are some highlights on this year’s changes:

Three well-known dividend aristocrats raised dividends last week. The companies include Coca-Cola (KO), Abbott Labs (ABT) and Sherwin-Williams (SHW). Another promising dividend raiser included Swiss Company Nestle (NSRGY). In dividend investing it is important not only to concentrate on companies with solid competitive advantages, but also ones which grow earnings and dividends along the line.

You expect your employer to give you a salary increase periodically. Why wouldn’t you expect the same from your investments? One of the most important aspects of a dividend stock is its ability to consistency raise dividends over time.

I am a firm believer that asset allocation plays a significant part in a portfolio’s long-term results. Recently, I received a question asking if you could have a diversified portfolio of dividend stocks. It is an interesting question that deserves further examination.

The Coca-Cola Company (NYSE: KO), the world's largest beverage company, is scheduled to release its fiscal fourth-quarter 2009 financial results before the market open on Tuesday, February 9, 2009.

To ensure a retirement that is free from financial concerns, there are certain things that must be done today. For many people this is not a desirable task. However, building a secure future by investing in quality dividend stocks is neither complicated nor overly burdensome.

Over the last couple of years we have seen companies fail to raise their dividend, cut their dividend and some even decided to stop paying their dividend. In some cases their financials did not warrant the change. So, how do you fin companies with a positive dividend culture?

The dividend aristocrats list includes companies which have increased dividends for over 25 years in a row. It is equally weighted and re-balanced once an year. Over the past 3,5 and 7 years the index of elite dividend stocks has managed to outperform the S&P 500 by 5%, 3.7% and 4.40% respectively.

With the expectations that the financial crisis appears to be over, investors have bid up stocks to the highest levels in over a year. There’s a lot of optimism in the news, including major banks repaying TARP money, unemployment stabilizing, and major economies rebounding.

Pepsi seems to be just a bit better run than Coca Cola in terms of management and operations (inventory management). Coca cola is a bit better in terms of riks, but both are extremely stable companies that are worthy
of investment.
The greatest risk to this investment is paying too much for it's shares. My valuation indicates that Coca Cola is overvalued at the moment.

Economic experts recommend investors dedicate 30-40% of their stock portfolio to foreign firms. Does following Joel Greenblatt's Magic Formula Investing strategy automatically meet that recommendation?

The S&P 500 Dividend Aristocrats is the most prestigious list of dividend stocks. It is designed to measure the performance of S&P 500 stocks that have followed a policy of consistently increasing dividends every year for at least 25 consecutive years.