Category Archives: Stock Market

Why Buffett Won His Bet Against Hedge Funds

QE had a lot to do with it. Active fund manager billionaires Warren Buffett and Charlie Munger have been critical of active fund manager millionaires for their very high fees and chronic underperformance. It is not unusual for the ultra wealthy to trash the … Continue reading

Posted in Economy, Federal Reserve, Hedge Funds, Investment, Society, Stock Market, United States, Wall Street | Leave a comment

To Save or Ruin Twitter

A decision that could fix Twitter or hasten its demise. This is not the first article to suggest that Twitter can generate some revenues by charging its users, but perhaps we can offer some new angles to the discussion. To begin, … Continue reading

Posted in 2016 Candidates, Business Strategy, Economy, Innovation, Investment, Stock Market, Twitter, United States, US Economy, Wall Street | Leave a comment

Passive Funds Are Just Free-Riding Active Funds

If you and your neighbor have the same income and expenses except that he rides the bus for free every day while you pay a fare, he will be richer than you. Until recently, this was obvious: the neighbor is … Continue reading

Posted in Economy, Innovation, Investment, Society, Stock Market, United States, US Economy, Wall Street | Leave a comment

The Way Forward for Hedge Funds – 2

In the first installment, I made a case that hedge funds can regain their popularity by reverting to their initial mandate which was to be hedged. I examine here how such a model hedge fund would have performed in the past … Continue reading

Posted in Economy, Hedge Funds, Innovation, Investment, Stock Market, United States, Wall Street | Leave a comment

The Way Forward for Hedge Funds – 1

Hedge funds should go back to hedging and also consider lower fees. Equity hedge funds are under tremendous pressure, having underperformed their benchmark in nearly every year since 2008. But can it really be true that the average equity hedge fund is no … Continue reading

Posted in Economy, Hedge Funds, Innovation, Investment, Stock Market, Taxation, United States, Wall Street | Leave a comment

Ratio of Gold to S&P 500

(Chart updated on 30 November 2015 with ratio at 0.51) The ratio of the price of gold to the S&P 500 shows two notable extremes that are clearly visible in the log-scale chart below. The first was a reading of 6.1 in … Continue reading

Posted in Analysis and Opinion, Economy, Gold, Inflation, Investment, Stock Market, United States

Keurig Green Mountain: Overpriced Coffee and Stock

20 November 2014 From a press release on 14 August 2014: Keurig Green Mountain, Inc. (NASDAQ: GMCR), announced today a price increase of up to 9% on all portion packs sold by Keurig for use in its Keurig® brewing systems and on … Continue reading

Posted in Analysis and Opinion, Coffee, Investment, Keurig Green Mountain, Stock Market, United States | 2 Comments

2011-14 GDP Forecasts vs. S&P 500

This is the fourth year in a row that GDP forecasts had to be ratcheted down. But the S&P 500 has powered ahead, in large part thanks to near-zero interest rates. The GDP forecast for 2014 now stands at +1.7%. Bloomberg … Continue reading

Posted in Economy, Stock Market, United States, US Economy

Facebook in a Perfect World

24 July 2014 Using Google as a comp for future growth and valuation. Last Thursday, Jim Cramer compared Facebook (FB) to Merck (MRK). According to this Seeking Alpha report, Cramer compared Facebook to the early days of Merck, when many were … Continue reading

Posted in Analysis and Opinion, Facebook, Google, Investment, Stock Market, United States, US Economy

Large Stocks Are Widely Mispriced

11 July 2014 Research suggests that when investors influence each other, the stock market becomes less efficient. Conventional theory holds that the stock market is efficient and that it does a good job pricing stocks at or close to their fair value, in … Continue reading

Posted in Analysis and Opinion, Apple, Investment, Stock Market, United States