Visa’s Profit Numbers Continue To Awe Me

To do something successfully, you have to properly execute a two-step process. First, you must acquire the information that is necessary to find the success, and secondly, you must actually—well—do it.

The Wall Street Journal recently ran a report on how the gap between intense novice poker players and professional players has been narrowing considerably in the past twenty years, thanks to the internet. Even though the pros are still better, someone who studies poker day and night, spending hours googling every poker-related question that enters his head is going to come pretty close to overtaking some of the top dogs as the constant researching on the internet allows passions to be fed.… Read the rest of this article!

High Dividends and Market-Beating Returns

I recently covered two recent purchases that I made over at Patreon. Both stocks offer 4.4% or higher starting dividend yields and a high likelihood of future price appreciation. 

Now would be a good time to join as a subscriber, as I plan on releasing a case study of Boeing as a long-term investment as well as coverage of a software-as-a-service firm that offers unusually high growth stock characteristics. I expect those additional pieces will be up within the next week. To join me on Patreon, please click here. Read the rest of this article!

What If Twitter Stock Were Valued Like Visa?

Investors in Twitter stock have recently learned the hard way how volatility strikes when you decide to purchase a company that has no readily identifiable profits under its umbrella—in other words, its valuation is inherently speculative because investors are entirely measuring the company based on what it will be like in the future, rather than what it is doing now. After crossing the $74 threshold the day after Christmas in 2013, the price of the stock has fallen to $35.

The financials of the company, as they stand right now, remain unimpressive. Twitter lost $1.13 per share in 2013, and this year should figure to be more of the same. That works out … Read the rest of this article!

Anheuser-Busch Inbev’s Withdrawn Asian IPO

Anheuser-Busch Inbev planned an IPO for its Asian subsidiary, Budweiser Brewing Co. APAC Ltd., that was shelved by Anheuser-Busch’s management team after it appeared that the company would be unable to fetch a high enough price for its IPO. 

There are two reasons why the initial public offering did not come to fruition and had to get tabled. 

First, Anheuser-Busch priced the IPO at a lofty valuation. It wanted to price its IPO between 40 and 47 Hong Kong dollars (which is about $5 or $6 in US dollars) and sell about 1.5 billion shares for an IPO in the range of $8.3 billion to $9.8 billion. This was ambitious pricing, to say … Read the rest of this article!

3 Ways To Build An Armadillo-Armored Portfolio of Blue-Chip Dividend Stocks

In the entire history of the American capital markets, this fact remains true: there has never been a year in which 10% of the companies that have been raising their dividends annually for more than 25 years went on to fail to raise their dividend in the subsequent year. That is to say, in a century that saw the Great Depression, the 1973-1974 bear market, the 9/11 terrorist attacks, and the 2008-2009 financial crisis, there was never a year in which this statement proved false: “I hold nothing but stocks that have been raising their dividends for 25+ consecutive years, and at least 90% of them raised their dividend this year.”

For someone … Read the rest of this article!