United Health Group – The Value in Health Insurance

Beyond the existential reasons, UnitedHealth is just a good basic stock. It gave investors a dividend yield of 1.51% and a return on equity of 18.71% on September 30. In contrast, Amazon paid no dividend and offered investors a return on equity of 2.92% on a stock that was trading at $657.02 a share on November 10, 2015.

Read more

Some Modern-Day Widows and Orphans Stocks

The bottom line is that widows and orphans stocks still exist. You just have to know where to look for them.

Read more

Is American Express Really a Dying Brand?

That means American Express could be a nice bargain stock at some point next year. It also means that Amex is still a really good long-term investment, even if it is no longer America’s favorite credit card.

Read more

Could Google Start Underwriting Insurance Policies?

What this means is that Alphabet could quickly become a major player in the insurance business, much as it is a major power in advertising and directories. It also means that your insurance agency could go the way of the telephone directory, and your insurance agent could end up delivering pizza for a living.

Read more

You Won’t Believe How Much Cash Oracle Has

Larry Ellison’s company had $55.93 billion in cash and short-term investments—the bank, in layperson’s terms—on August 31, 2015. Yet Oracle shares were trading at $38.10 at the close of business on October 9, 2015. That means Oracle now has more money in the bank than Apple (NASDAQ: AAPL) does. For the record, Apple had $34.7 billion in cash and short-term investments on June 30, 2015.

Read more

Do Canadian Railroads Make Money?

Are railroads actually a value investment, or is it just certain companies such as the Union Pacific (NYSE: UNP), or UP? The Canadian transcontinental lines do have some interesting characteristics; after all, they do provide a direct transportation link between the West Coast and the Midwest that bypasses the U.S. West Coast ports and their labor troubles. Unlike some U.S. transcontinental lines, the Canadian railways also provide direct connections to the East Coast. These railroads are also well positioned to take advantage of the oil boom in the central continent, particularly Alberta’s oil sands.

Read more

Cisco Systems a Company with a Lot of Cash

Cisco Systems is a value investment for a very simple reason. It is an infrastructure company: one of those great businesses that you do not see but is all around you, much like the pipeline and supply chain companies that Warren Buffett owns.

Read more

Sysco: A Value Investment You Have Never Heard Of

If you are looking for a classic Warren Buffett-style value play, Sysco is certainly worth a look. It has many of the attributes Uncle Warren loves: It is not sexy, but it has a steady, widespread business that generates a lot of cash, and that business is growing.

Read more

Do Auto Insurance Companies Make Money?

Buffett’s classic theory is that insurance companies can generate a lot of float from the premiums. The idea is that large numbers of people send in premiums every month, so as long as the amount of payments taken in exceeds the claims paid out, the insurer has a big pile of extra cash it can tap.

Read more

Is Lending Tree Making Money?

If the U.S. economy does tank because of the situation in China, expect LendingTree to be one of the first stocks to go down and go down hard. This stock is sitting on very shaky ground that will soon collapse.

Read more