Mr. Market Archives - Market Mad House

Market Mad House

In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. Friedrich Nietzsche

Workers need a Basic Income because work no longer pays

May 19, 2019May 19, 2019 daniel Andrew Yang, Basic Income, Can Basic Income Fix the Labor Market?, Can Basic Income Fix Unions and Communities, Freedom Dividend, How to Keep Capitalism and share its benefits with everybody, Mr. Market, Our Economy no Longer Values Work, our society no longer values work or workers, The Most Important Work no Longer Pays in America, work no longer pays, Workers need a Basic Income, Workers need a Basic Income because work no longer pays

Therefore, our society no longer values work or workers. In fact, there is now a long list of jobs that our market economy assigns no value to.

Market Insanity

Should Value Investors Pounce on Wells Fargo?

September 20, 2016 daniel a good business is one your idiot nephew could run, Bank of America (NYSE: BAC), Buffett’s thinking, Ethics for Value Investors, Is Wells Fargo a Bargain or a Time Bomb Waiting to Explode?, Mr. Market, Mylan (NYSE: MYL), Should Value Investors Pounce on Wells Fargo?, US Bancop (NYSE: USB), Warren Buffett, Wells Fargo (NYSE: WFC), Wells Fargo management, Wells Fargo scandal, Why Buffett Believes in Wells Fargo

Buffett’s thinking is that Wells Fargo has so much money; it can simply pay whatever fines and lawsuit settlements that stem from the phantom accounts scandal, and still have cash to spare. This seems like an obvious extension of Warren’s famed belief that a good business is one your idiot nephew could run and still make money. Here’s how he described in a 2010 discussion with the FDIC:

Market Wisdom

What I Have Learned from the Market

July 31, 2016 daniel A good stock can be a bad investment, An idea is not an investment., but not in themselves., Free is not necessarily good, Gold is a commodity, hype drives out the truth, If you are not making mistakes, If you’re not prepared to lose money, Keynes was right, Mr. Market, not money., Successful people learn from their mistakes; failures hide their mistakes., Successful people tolerate failure in others, There is a chart to prove every theory, Unsuccessful people are intolerant of failure in others, you are not making money., you’re not prepared to learn.

When you do not pay attention to Mr. Market; he whacks you in the head with a club, to remind you he is still there.

Long Ideas Stocks Thrift

TJX Profiting from Income Inequality

April 18, 2016April 18, 2016 daniel 43.01% return on equity, 53% return on equity, Amazon (NASDAQ: AMZN), dividend of 13.55¢, dividend of 26¢ a share, How Income Inequality Helps TJX, JC Penney (NYSE: JCP), Mr. Market, Mr. Market Has Noticed, Ross stock, Ross Stores (NASDAQ: ROST), TJX Companies (NYSE: TJX)

That indicates we could be moving towards a serious disconnect in American retail; with upper-income Americans shopping at Amazon (NASDAQ: AMZN), while the increasingly cash-strapped working class turns to brick and mortar discounters. This could be a huge opportunity for investors that can identify which retailers are best-positioned to take advantage of this trend.

Good Stocks Stocks

Some Modern-Day Widows and Orphans Stocks

November 5, 2015March 15, 2016 daniel A lot of cash, Alphabet (NASDAQ: GOOGL), Apple Inc. (NASDAQ: AAPL), Benjamin Graham, Berkshire Hathaway, Berkshire Hathaway (NYSE: BRK.B), Charley Munger, Costco, Disruptive Technology, GOOG, GOOGL, Google, Modern-Day Widows and Orphans Stocks, Mr. Market, Mr. Money Mustache, Some Modern-Day Widows and Orphans Stocks, Tech is where the money is these days, The best way to describe this company is as a money machine, The company formerly known as Google, Value Investing, Warren Buffett, What a Modern-Day Widows and Orphans Stock Would Look Like

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

Market Insanity

Is Lending Tree Making Money?

September 16, 2015March 9, 2016 daniel Amazon, Apple Pay, Credibly, does Lending Tree make money?, Is Lending Tree Making Money?, Is LendingTree is overpriced, LC, lending club, Lending Tree, Lending Tree did post a healthy profit margin of 8.56%., LendingTree is overpriced, Mr. Market, Mr. Money Mustache, PayPal, Progressive, Prosper, PYPL, TREE, Value Investing, Venmo, Warren Buffett, What the Numbers tell us about LendingTree

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.

Good Stocks

American Credit Card Companies Are flush with Cash

September 15, 2015April 20, 2016 daniel AMEX, An Industry with a Lot of Cash, Are Credit Cards a Good Investment?, AXP, Capital One, Charley Munger, COF, Costco, DFS, Discover Financial Services, Disruptive Technology, MA, Mr. Market, Mr. Money Mustache, PayPal, The Danger from Defaults, V, Venmo, Visa, Wal-Mart, Warren Buffett, Why Many Investors are Scared of U.S. Credit Card Companies

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.

Crazy Stocks Stocks

Is Amazon Really Worth $524 a Share?

September 10, 2015March 6, 2016 daniel $3.452 billion in cash from financing, 14 billion in cash and short-term investments, Amazon, Amazon also lost -$6.634 billion in cash from financing., Amazon also reported a net income of -$188, Amazon does not pay a dividend, Amazon Is Flush with Cash, Amazon is generating a staggering amount of cash., AMZN, Berkshire Hathaway, GOOG, In June 2014 Amazon had $7.986 billion in the bank, Is Amazon Really Worth $524 a Share?, Mr. Market, so its cash and short-term investments nearly doubled in a year., Warren Buffett, Why Amazon Might Never Become the New Walmart, Why Jeff Bezos Wants Amazon to Become Walmart

The only way that this situation could be avoided would be if Amazon’s revenue were to grow as large as Walmart’s. The problem with that is that Walmart reported a TTM revenue of $485.62 billion on July 31, 2015, or nearly five times that of Amazon’s, making it the world’s largest retailer by far.

Long Ideas

Does Lending Club Actually Make Money?

September 9, 2015March 9, 2016 daniel AAPL, Amazon, AMZN, Apple Pay, Apple Stock, Bank of America, Benjamin Graham, Berkshire Hathaway, Does Lending Club Actually Make Money?, GOOG, Kroger, LC, lending club, Lending Club CEO, Lending Club vs. PayPal vs. Google vs. Apple, Mr. Market, Mr. Money Mustache, On Deck, PayPal, Prosper, Renaud Laplanche, Value Investing, Venmo, Warren Buffett, Why Lending Club Is an Acquisition Target

Therefore Lending Club looks like a successful company but not a value investment. Its platform is achieving a lot of growth, but it is not making money the way PayPal is. This indicates that its business model could be flawed or at least seriously limited, so you should stay away from it for now

Good Stocks

Ten Really Great Underpriced Stocks to Consider Buying Right Now

September 2, 2015April 21, 2016 daniel AAPL, American Express Stock, AMEX, Apple Pay, Apple Stock, AXP, BIG, Big Lots Stock, Capital One Financial Stock, COF, DIS, GOOG, Google, Kansas City Southern, KR, Kroger, KSU, Mr. Market, Mr. Money Mustache, PayPal Holdings, PG, Procter & Gamble Stock, PYPL, Value Investing, Walmart Stores Inc., Walt Disney Stock, Warren Buffett, WMT

If you want to take a gamble on a tech company that could be the next Google, PayPal could be it. PayPal’s revenue was growing at a rate of 14% in the first quarter of 2015. PayPal’s international revenue grew at a rate of 52% in 2014, the volume of mobile payments it processed grew by 58% and its total payment volume grew by 26%.

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