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Value Investing

Toyota Prius, Tata Nano, Tesla Roadster and More

November 14, 2011
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Toyota Prius, Tata Nano, Tesla Roadster and More

These are exciting times for observers of the automobile industry … and for a small percentage of investors in it. The Toyota Prius has become the poster child of the hybrid car movement, leading a growing range of hybrid offerings–including the massive Cadillac Escalade– from nearly every manufacturer. Pure electric cars are just beginning to emerge, with the Chevy Volt and Nissan Leaf targeting the mass market and Tesla aiming higher. And as these technologies improve and gasoline and diesel-burning engines are gradually displaced from our roads, the result will be lower pollution, better health and lower oil prices,...

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The Warren Buffett Approach

October 25, 2011
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The Warren Buffett Approach

I have always advised most investors to divide the stock portion of their portfolio into 50% value stocks and 50% growth stocks. I find, though, that many investors prefer growth stocks and disregard those slow-moving value stocks that have to be held “forever.” Poppycock! Value stocks belong in everyone’s portfolio. Now is a great time to transition money into conservative, dividend-paying, undervalued companies. The current stock market offers you an excellent opportunity to buy stocks at bargain prices. If the stock market continues to move in 100-point increments, you can take advantage at both ends of the spectrum. Buy...

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A Stock for Your Inner Value Investor

October 21, 2011
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Despite my personal preference for growth stocks, there are times when an investor has to give a nod to reality. In a market like this, great setups for growth stocks are thin on the ground, and some of the old leaders are springing leaks left and right. So it’s a good time to get in touch with your inner value investor, and that’s what I’m doing with Tata Motors (TTM). Tata Motors is an Indian car and truck builder that manufactures an astonishing variety of vehicles, from the Tata Nano, the world’s cheapest, fully enclosed four-passenger car, to Jaguars...

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5 Great Dividend-Paying Stocks

October 20, 2011
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We recently conducted a short survey of our Dick Davis Investment Digest subscribers. Several common concerns were market volatility and economic uncertainty (which I wrote about two weeks ago here). Today, I want to address a third common refrain. As a subscriber from Texas put it: “Maximize dividend income while preserving capital.” Two other respondents complained about the low interest rates on fixed income investments. Howard B. wrote that he would like help “finding the highest possible yield with investment grade or high credit quality. I am looking for a combination of appreciation and current cash flow yields.” Charles...

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Lululemon Athletica (LULU): A Great Canadian Stock

October 18, 2011
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As to the market, it’s looking better, and we are now advising growth-oriented investors to start reducing their cash levels and buying. Trouble is, at the start of a new bull market it’s difficult to know which stocks will become true leaders; all we know is the new leaders are seldom the leaders of the prior bull market. So my suggestion today is to look at a growing company that’s also attractive because it meets the value investing criteria of Cabot Benjamin Graham Value Letter Editor Roy Ward. Roy (who lives in Florida) has been featuring Canadian companies at...

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