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Rising Market, Rising Oil, Rising Suspicion

February 26, 2012 By Clark 1 Comment

The recent stock market rally (in conjunction with rising oil prices) has many people expecting a correction.

I’m a fan of value investing and purchasing undervalued stocks so it was refreshing to see this article in Barron’s titled “The Market’s Pullback Watch”, and to quote the article “does the market ever oblige the group that awaits the pullback?”

Some interesting statistics noted in the article:

“Investors Intelligence Survey of investment newsletters noted:

22% calling for correction
51% outright bullish
27% bearish”

The article touches on rising global oil prices (a hot political topic (hint: Iran) , and how this will affect the rally we have just seen. More on rising oil prices HERE, and HERE

This week will also be interesting to see how the BP civil trial plays out (recently delayed adding to the suspense!), and how much of an impact this will have on their stock price.

Barron’s “The Market Pullback Watch” Article located HERE.

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Berkshire Hathaway Portfolio Update

February 16, 2012 By Clark Leave a Comment

The long waited Berkshire Hathaway portfolio is out.

Berkshire filed documents on Tuesday with the SEC revealing some of his new positions.

Buffett is taking a bigger stake in Wells Fargo and selling shares of J&J and Kraft. Buffett also took new positions in DVA, LMCA and added to IBM. Anything Buffett purchases or reups on is definitely worth taking a look at, especially if it drops below what he bought it at (which is how I had a huge gain on GE).

From Guru Focus:

New Purchases: DVA, LMCA,

Added Positions: IBM, DTV, WFC, CVS, V, GD, INTC, VRSK,

Reduced Positions: JNJ,

Sold Out: XOM,

For more info on Berkshire’s portfolio click links below:
GuruFocus “Warren Buffett Buys More IBM, Wells Fargo, DTV, CVS; Sells XOM and JNJ”
Washington Post “Berkshire Hathaway adds to Wells Fargo stake, scales back J&J, Kraft holdings in busy quarter”
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Reuters “Buffett builds media portfolio in fourth quarter”

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Stocks Plummeting: Great News!!!

August 8, 2011 By Clark 2 Comments

“Be Greedy when others are Fearful” -Warren Buffett-

To anyone interested in taking advantage of the AA+ rating by purchasing undervalued stocks, which are plummeting due to the emotional sell off caused by the downgrade, I have listed a few stocks I believe are worth purchasing and why I believe so.

WELLS FARGO BANK (WFC)

Simply put, the EPS is high (2.57), and it is currently listed at a price of $23.84. Warren Buffett added to his holdings of this stock a while back by 5% and his purchase prices were between $23.25 and $28.57, with an estimated average price of $26.11. The stock is currently priced well below $26.11, and it will probably fall even more this week (making it a better bargain). This line of thinking has served me well, as I bought GE at $9/share after reading that Buffett bought $3 Billion worth of GE at around $12/share back in 2008.

AFLAC (AFL)

Aflac gets 70-75% of its earnings from Japan, and thus the company has taken a hit having to pay out claims engendered by the Tsunami. With the US’s AA+ rating, the company has taken another big hit so the stock price has collapsed (Japan also owns most of our debt after China). Due to it’s size,high EPS (3.81), extremely cash rich business, and niched supplemental products, I have no doubt this stock will prevail after the intense losses it’s suffering due to claims paid out due to the Tsunami. Aflac also is considered the number one brand in the health insurance field. Hopefully this stock continues to fall thanks to the AA+, making it an even more appealing purchase. Did I mention I am a fan of their commercials!??

BRITISH PETROLEUM (BP)

Similar to AFLAC, BP’s stock took a hit due a specific and highly publicized event. The DeepWater Horizon oil spill left the American public with a negative outlook on BP, and BP has to pay huge sums for Gulf Restoration. However, after looking at the numbers (EPS of 6.32) BP will no doubt remain solvent, and prevail after this setback. The AA+ rating has further beat down this stock price, which is currently listed at $38.41.

Please email me at TheRisetoWealth (at) gmail.com if have spotted any other stocks that you think are currently undervalued and worth considering.

CM

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Who will be the next Warren Buffett?

August 8, 2011 By Clark Leave a Comment

With stocks plummeting due to the AA+ rating, there are a lot of tasty cheap stocks out there. I am personally tracking WFC, BP, AFL and to a lesser extent ECA and JMBA. With many undervalued stocks, I wanted to see which investors (including Buffett) would be most likely to capitalize on this current market fluctuation and maximize gains. Below is a great article featured today in the San Francisco Chronicle which lists “Who will be the Next Warren Buffett?” and includes a brief biography on each fund manager.

“Who will be the Next Warren Buffett?”

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Buffettize your Portfolio

November 19, 2010 By Clark Leave a Comment

Thanks to the recession, one of the best investments I have made to date was buying GE stock at $8 a share, simply because I knew that Warren Buffett had bought 4 billion dollars worth of stock at approximately $12 a share. Always interested in seeking opportunities like this I was pleasantly surprised to witness this article in the link below in Smart Money. It lists some Blue Chips that are still at reasonable prices, and which are lower than when Buffett bought them. Definitely worth taking a look to all my value investors out there! Article located HERE .

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Warren Buffett and Jay-Z

October 5, 2010 By Clark Leave a Comment


These two very different businessmen have created enterprises in similar ways. They speak about their early careers, entrepreneurial interests, and specific moments and mentors that made them successful.

Buffett breaks down some of his fundamentals on value investing, which he learned from his mentor Ben Graham, and when he decided to changed his investing perspective. Buffett also describes how one can apply the “habits of success”, while Jay describes how he “broke out of the pack”, and narrowly avoided being sent to prison.

Both agree on the importance of knowing how to identify emotional responses that occur in business, whether it’s industry trends or the stock market. Buffett and Jay also discuss how much “luck” has to play in business, and other intangible aspects one cannot quantify. Both have risen to wealth and attained huge recognition. They detail what gaining wealth meant for them, namely independence and the opportunity for philanthropy, and [Read more...]

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