In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. Friedrich Nietzsche
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.
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The bottom line is that widows and orphans stocks still exist. You just have to know where to look for them.
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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.
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One reason why housing is not on the U.S. national agenda is that for most Americans, there is no housing shortage. A quick look at Zillow indicates that prices are actually falling in many markets, including regions in Colorado that are a little over a hundred miles from the red-hot Denver market.
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The numbers show us that the recent stock split has made Kroger one of the most under-appreciated and undervalued stocks around. It is also one of the best bargains in the market today.
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Despite the risks, the U.S. credit industry is capable of generating a lot of cash, which can lead to high levels of float. Float is Warren Buffett’s term for a constant stream of revenue or stockpile of cash that a company can tap or borrow against at any time. Classic examples of float include credit card fees and insurance policy premiums.
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One strong possibility is that Uber will never get more than a 5% market share because it offers a rather specialized service that only appeals to certain individuals. Another is that Uber has a much harder time competing with traditional cab companies than we have been told.
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As you can see, many of the biggest names in American retail are still missing from the list, including the nation’s largest supermarket operator, Kroger, which owns such chains as Ralphs, Fred Meyer, Smiths, Harris Teeter, and King Sooper’s. All of the dollar store operators; Walmart, the largest retailer in the universe; Amazon.com; most department stores; and all of the hardware and home improvement stores are also missing.
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The reality is you are getting a 2005-style jumbo mortgage lender (with other odd high risk loans) funded primarily by high cost brokered deposit.”
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It looks as if there is no tech bubble; instead, there seems to be individual bubbles surrounding specific stocks. That situation does not look as dangerous as an across the board bubble, but it does indicate a far higher level of market volatility than is being reported.
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