Tag Archives: IBM

Searching For Value And Finding It In Today’s Market – Sector By Sector

By Chuck Carnevale:

Introduction

“I think the market is overvalued now,” is a common refrain that I’m hearing from most of the individual investors I have recently been coming in contact with. Consequently, many of these same investors are also currently eschewing investing in common stocks because of that fear. Although I do not agree that the market is currently overvalued, I believe I understand why so many people think it is. Individual investors currently believe the market is overvalued because of two common fallacies that at first blush appear to be logical.

This is the first of what will be a sequence of 10 subsequent articles designed to show how retirees, or pre-retirees, can construct dividend growth portfolios comprised of high quality blue-chip stocks all purchased at fair value, in spite of what many believe to be an overvalued market. I do not believe that investors should be denied the opportunity to


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Own These World’s Leading Brands And Never Fear A Recession Again

By Chuck Carnevale:

Introduction – The Volatility Is Risk Myth

If you were to take the essence of most people’s beliefs and understanding about investing in common stocks, or the stock market for that matter, and turn it into a movie, I believe it would have to be labeled under the category science fiction. In other words, in my experience, most of what people believe about common stocks or the stock market is predicated more on opinion than on fact. But even more importantly, it is predicated on opinions that are driven by strong emotional responses. Consequently, I believe that what most people feel that they know about investing in stocks is based more on myth than truth.

Perhaps the biggest myth of all is the perception that investing in common stocks is a risky endeavor. Whether you are listening to professional or lay investors alike, it is widely accepted that stocks are


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Footsteps Of Buffett’s Retirement Portfolio: Time For A Correction

ByJarrod W. Jacinth:

Well, we had an interesting Friday as the markets dropped significantly in the final hour of trading. I’m contemplating the same thing everyone else is, as far as if this is the start of a correction that many believe is long overdue, perhaps.

Currently, our retirement portfolio consists of only four companies; Coca-Cola (KO), International Business Machines (IBM), Wal-Mart (WMT) and our newest position Marathon Petroleum Corp. (MPC). The focus in this portfolio is to find long-term companies that we can grow positions in over a lifetime. We plan on reinvesting dividends until retirement. The main focus is on accumulating as many shares as possible. Our current portfolio is as follows.

Q1 2013

Q1 Div.

Q2 2013

Q2 Div

Q3 2013

Q3 Div.

Q4 2013

Q4 Div.

Shares Purchased

Total Shares

Increase

KO

73

0

61

0.5054

0

0

0

0

134

134.5054

0.38%

IBM

0

0

23


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The Major Bubble That Nobody Is Talking About

By Eric Parnell:

“Be fearful when others are greedy and greedy when others are fearful”

–Warren Buffett

A major bubble is currently inflating in investment markets. Yet nobody is talking about it. It’s not that the category in question isn’t getting any attention. To the contrary, it is being talked about at length nearly every day. But what is missing from the discussion is the fact that all of the signs of a massive bubble are now falling into place.

For the purpose of this article, I have taken a different approach with the analysis. Instead of introducing the investment that is showing signs of a bubble, I will be exploring the evidence first in order to avoid any behavioral biases associated with the specific investment in question.

While the bull market for this investment has been underway for nearly two years, it has only recently entered into a parabolic advance over the


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The ‘Safe 8′ Dividend Stocks To Hold The Rest Of Your Life

author name submits:

Have you ever heard the phrase “a picture is worth a thousand words”? Well, I’m going to put that notion to the test and demonstrate why I believe that Coca-Cola (KO), PepsiCo (PEP), Kellogg’s (K), Kraft (KRFT), Mondelez (MDLZ), Unilever (UL), General Mills (GIS), and Nestle (NSRGY.PK) are the ideal stocks to make up 20-50% of your common stock portfolio.

(click to enlarge)

Take a good look at that picture.

If you make these eight stocks the cornerstone of your investment portfolio, you will pretty much own every aisle at the grocery store. The appeal of these eight companies is that you can truly be a “buy-and-hold” investor with these kinds of companies because they do not share the attributes that typically cause other blue-chip companies to collapse.

(1) First of all, none of these companies need particularly strong management to succeed. Warren Buffett publicly criticized the CEO of Kraft


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Escape Strategies For When The Stock Market Starts To Burn

By Eric Parnell:

It was one of the most infamous building fires in U.S. history. The date was November 28, 1942. The place was the Cocoanut Grove, arguably the finest nightclub in all of New England. Up until that fateful day, The Grove was the place to be seen and was frequented by sport stars, celebrities and power elites. It was also, however, a place with dubious ties and there was a tragic accident just waiting to happen. And so it did on the Saturday after Thanksgiving in 1942 when a fire rapidly engulfed the establishment in just 15 minutes, killing 492 guests and severely injuring another 166. The Cocoanut Grove fire resulted in important changes in building code fire safety as well as advancements in the treatment of burn victims. And over 70 years on, it also provides some important lessons about the strategies that should accompany investing in the stock market


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Key Signals To Watch For A Major Stock Market Top

By Eric Parnell:

It is a question that is on the minds of many investors today. They are watching the stock market relentlessly rising nearly every single trading day, with even the smallest of dips being bought in pushing the stock market to new highs. Yet they stand back and look at the fundamental data and see a complete disconnect between the direction of stock prices and the underlying economic reality. And believing that the rally is being completely fueled by the flood of monetary liquidity that continues to flow into the markets, they remain convinced that this will all end badly just as it has a few times before since the start of the new millennium. But this leads to the key question – exactly when will the market finally reach a major market top and plunge into a sharp correction? Fortunately, the recent past has provided us with some key signposts


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