Taking A Peek At Microsoft Stock

With the price of Apple stock having increased from $78 per share to almost $128 per share in the last year (for a gain of 64% in share price along, plus you would have to include the four dividends), it is easy to understand why Microsoft has gotten much less attention. In fact, it is almost impossible to discuss Microsoft stock in its own right without the relatively superior performance of Apple coming up in conversation. I’m not going to do that today because everyone knows Apple’s growth has been superior. Instead, I’ll tell you what I see when I study Microsoft: a company that mints cash.

Even as the company tries to … Read the rest of this article!

A Particular Example To Explain Why Market Timing Is Unnecessary

Imagine that, eight years ago, you had the intelligent thought: “Colgate-Palmolive is an excellent company that is worth buying anytime I can get an earnings yield of 5% or better because I like my odds when I own a company that grows profits 8-11% annually, pays out a dividend around 2.5%, and has such high profit quality that the dividend has been able to grow during every year since 1963. Plus, things like dish soap, toothbrushes and toothpaste, and household cleaning products will be around for a long time and Colgate-Palmolive owns a lot of products in those categories that people gravitate towards almost subconsciously.”

In 2007, you would have gotten a chance … Read the rest of this article!

Two Recent Purchases

I made two purchases yesterday, and I detailed them for my subscribers over on Patreon which you can access by subscribing here. One of the purchases covers what I believe to be the only mega-cap American stock that can be fairly said to be 1/4 to 1/2 undervalued based on both common-sense and traditional value investing metrics (and I always love it when those two methodologies point to the same direction). The post is a bit longer than usual, coming in at 2,700 words which is approximately 9 pages double-spaced. If you are thinking about subscribing, this would be a good one to join as the two stocks covered fall within the … Read the rest of this article!

The Difference Between Hershey And Coca-Cola Right Now

In the 1980s and 1990s, one of the reasons why it was enjoyable to be a long-term shareholder of Coca-Cola stock is that the soda giant was able to grow volumes while simultaneously raising the prices of its drinks. Since around 2005 or so, Coca-Cola has struggled more so to grow volumes at the same time the company decided to raise prices—the company has resorted to holding prices steady or instituting temporary price hikes coupled with reductions (e.g. raise $1.25 soda to $1.50 then back to $1.25 so the $1.25 seems cheaper and the eventual $1.50 seems less lofty because it’s an already reached high).

By the way, that entry paragraph should not … Read the rest of this article!

Why Some Excellent Companies Would Make Disastrous Personal Investments

In 1923, a lawyer from Columbia University named Robert Lee Hale wrote the charmingly titled “Coercion and Distribution in a Supposedly Non-Coercive State” to argue that there is a significant gap between the theory of a how is supposed to work and how it actually gets applied in practice. It was Hale’s work, along with the Supreme Court opinions written by justice Oliver Wendell Holmes, that helped give rise to a school of philosophy called legal realism in which you focus on the real-world effects of laws rather than regarding laws as self-executing principles that get properly applied as intended.

A similar shift is taking place in the field of investing … Read the rest of this article!