Investing For Survival

B: In the past couple of months, I’m just mostly accumulating the shares I already had in my portfolio, so no much new stocks that are out there for me to explore. As the markets have risen quite a bit over the past year or so, I thought it would be a good plan to park some of the gains from a couple of share sales in a safe haven. Instead, investors should study current economic factors to predict the future success of Canadian real estate markets. Big Short covers the story behind the short-sellers who profitted from the real estate bust. Having an understanding of how to buy commercial real estate is essential when starting out in commercial investing, or in reviewing your current buying process. Does buying out of favour stocks work well over time? Being contrarian generally means buying out of favour assets. If you want to see how out of favour stocks can do better than the popular ones, consider the following example from the Brandes Institute, run by the value investing firm, Brandes.

Thank you, Marisa. (and yes– the example is us.) My husband is still planting fruit trees every year. In fact, I believe that nothing should stop us from investing and I initiated a second, more spicy passive portfolio last year. Indeed, in the last 45 years, the cumulative dividends of the Dow Jones Industrial Average (DJIA) have risen 37 times and fallen only 8 times. Barack Obama, in particular, had a clean slate and could have taken bold actions like FDR did. I like how he, in this podcast, uses the analogy of a murder investigation to illustrate how the investigation can be tainted depending on the initial decisions you make. Sometimes unduly lost. I brushed up my expertise in identifying bargain investments such as stocks, bonds and properties and I want to help everyone understand when we should be buying; ie when things are cheap like some global stocks now. However, the five speaker combos are cost effective and easy to install.

The five in the bottom decile had declining profits, very low ROE and ROIC, and were generally considered “old” companies with a deteriorating future. David Dreman has shown in his books that low valuation stocks, as measured by P/E, P/B, P/S, or dividend yield, outperform high valuation stocks. Most people aren’t used to looking at charts of earnings yield, so we converted the earnings yield (E/P) back into P/E. In addition, value investors tend to miss “macro trends” which can yield hugely profitable investments. David Dreman has also pointed out similar results with low valuation stocks (P/E, P/B, P/S, dividend yield) versus high valuation stocks. John Neff has also remarked that his highly successful strategy of the 70’s and 80’s is best considered as a low P/E investing strategy. Parallels between John Law’s Mississippi bubble and the present (Buttonwood): I think Buttonwood is too extreme in suggesting that the pro-stimulus crowd is behaving similarly to John Law. It does seem, in some superflous sense, that policymakers took some steps during the crisis that were similar to John Law’s actions. Paul Volker, considered by some to be the greatest American central banker, laments the lack of interest in fixing the serious problems by policymakers.

Instead, we end up with half-attempts at fixing problems. It’s kind of too bad that governments did very little during the crisis to fix the problems. Nevertheless, I think some of the parallels that he/she brings up is kind of scary. While there are times we should sit down and think alone, most thinking require discussing with like-minded friends, writing down our thoughts and ironically more reading to better understand the issue at hand. The Canadian segment of Kinder Morgan, has publicly stated they do not think the pipeline can be built due to all the “fighting” and protestors that are currently at play. We are just pretending to be soothsayers, are we not? Behind the scenes look at IKEA (Report on Business magazine): Always interesting to see how businesses are run. Big money can be saved in the long run as the mortgage interest payments are tax deductible. In this essay, George Soros presents his view on what is happening with the Euro and why governments are making a mistake. Having said the above, there are a few important things to note.

Although this isn’t a statistically signficant sample, note that the sample is reasonably unbiased in including companies from different sectors. Companies divide their ownership stakes into shares, and amount of shares you purchase indicates your level of ownership in the company. The Keystone Bridge company used iron instead of wood to build bridges. Review of Evolution of God (The New York Review of Books): Likely controversial in the eyes of theists, this article reviews a book by Robert Wright that tries to map out how religion has evolved over time. Before I get trashed, I should make it clear that I’m just pointing out the downside of value investing so that investors are conscious of what can happen with value investing. Obtain an expert to advise you and consider precautions to make certain any offer you key in is genuine. Just keep in mind that these ETFs offer a lot more diversification.