You should buy Freeport McMoRan (FCX), Caterpillar (CAT), PACCAR (PCAR).” – that is what I hear from friends of mine, who are in the biz, all the time. They tell me how cheap these stocks are – 3, 6, 8 times earnings. “You are a value guy! How come you are not loading up on [...]
I wrote this article almost two years ago, it is by far the most important article I ever wrote. I strongly encourage you to read it today. Successful investing is about following a successful, time-proven process in good and bad times (especially bad times). Of course, the problem with the process – though it may work [...]
Government intervention in the financial system via the Troubled Asset Relief Program made me sick to my stomach, but without it, there is a real possibility that our economy would have come to a screeching halt as trust in the financial system was strained to the point of breaking. Confidence among depositors and banks alike [...]
I had a fun radio/podcast interview today with Chuck Jaffe at MarketWatch (here is a link, my portion of the interview starts on the 10:40 mark), we “played” hold it or fold it with some of the stocks we own: American Express, eBAY, Nokia; stocks I would NOT want to own: GE, Goldman Sachs, Bank [...]
I was quoted in this week’s Barron’s on AmEx (AXP): “This company can weather a huge hurricane and come out fine,” says Vitaliy Katsenelson, head of research at Investment Management Associates in Denver. “American Express is one the simplest financial companies to analyze. It’s much more transparent than Citigroup or JPMorgan or Goldman Sachs. He argues [...]
I’ve said for a long time that one should not trust economic statistics data coming from the Chinese Government as it has the incentives (and power) to interrogate the data until it confesses to what it wants to see. Today we learned that industrial production in China rose 8.2% in October, a slowdown from [...]
AmEx becoming a bank holding company (BHC) is not just net positive for the company it is simply positive. When a highly leveraged investment bank like Goldman Sachs turns into a BHC, its future profitability suffers as its leverage drops to commensurate level of the bank. Lower leverage leads to lower profitability. AmEx on another [...]
Whenever I write or speak in front of a group of people and feel the need to apologize for my message, I am usually right. This usually happens for two reasons. First, I am likely saying what people don’t want to hear; and second, because the message goes contrary to common opinion. So I am [...]
I was interviewed by terrific Robert Huebscher at Advisor Perspectives. We’ve revisited my range-bound markets thesis, possible economic scenarios for our economy, and discussed global economy including Europe, Russia, Middle East, and of course China. Here is a link to the interview. Robert also interviewed me awhile back, we discussed range-bound thesis in great detail. Here is [...]