For your weekend reading, I present a new offering in the world of investment newsletters -- and this one is free (except maybe you have to subscribe to U.S. News & World Report to get it; I don't know since I've been a lifelong subscriber to U.S. News.) But it's worth a try and seems to offer some very good advice. This sample from July 2nd is a look at "The Common Traits of Billionaire Investors." If it looks good to you, go to the magazine's web site and see if you can get it. (If not, I will add that U.S. News is one of the very best news weeklies out there and would be well worth subscribing to anyway.) Enjoy the rest of this very pleasant weekend, and let's be thankful we're not in Louisiana!
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Invested
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Advice, rankings and stock market news for investors.
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July 2, 2019
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TODAY'S BIG IDEA
The Common Traits of Billionaire Investors
Some of the best-known billionaire investors follow one common approach: They are value investors. People like Warren Buffett, CEO of Berkshire Hathaway (ticker: BRK.A, BRK.B); Seth Klarman, CEO and portfolio manager of Baupost Group; Mason Hawkins, founder of Southeastern Asset Management; and Mario Gabelli, CEO of GAMCO Investors ( GBL), are a billionaires who have made their fortunes with a value investing approach. Here are nine common traits of billionaire value investors that any do-it-yourself investor can embrace: 1. They know markets aren't always efficient. Value investing rejects the idea that securities are properly priced and markets are efficient, says Andrew Whalen, CEO of Whalen Financial in Las Vegas. One area where this inefficiency occurs is when unprofitable companies are highly valued. That's based on hopes of future profitability, rather than securities analysis, he says. Buffett is best known for this theory, but Whalen says he learned it as a student of Benjamin Graham, widely known as the father of value investing. Graham wrote two classic value investing books, "Securities Analysis" and "The Intelligent Investor." Buffett called the latter the best investing book ever written, Whalen adds. 2. They seek intrinsic value. Billionaire investors like Hawkins and Buffett look for companies with strong balance sheets such as those with little debt, which are trading far below their intrinsic value. A company's intrinsic value is calculated through fundamental analysis and not market value. They also look for companies that can grow over time, which can confuse some investors who think value investing precludes growth. – Debbie CarlsonClick here to continue.Recommended reading on this topic:9 of the Best Value Stocks to Buy in 2019Why Value Investing Is Making a Comeback9 Small-Cap Value Stocks to Buy7 Fast-Growing Brands for Long-Term InvestorsGrowth Versus Value Stocks |
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TODAY'S FINANCIAL ROUNDUP
OPEC is confident non-members will extend production cuts. Major oil producing nations are meeting in Vienna for a second day, with OPEC members expressing confidence that non-members of the cartel will sign off on a deal to extend cuts for another nine months. Member nations of the Organization of the Petroleum Exporting Countries on Monday agreed to the extension in a bid to keep oil prices from sagging as the cartel faces a weakening outlook for global demand. Huawei awaits approval to resume using Android. China's Huawei said on Monday it is awaiting guidance from the U.S. Department of Commerce on whether it can resume using Google's ( GOOG, GOOGL) Android mobile operating system on upcoming smartphones. The rich get richer in record U.S. expansion. Welcome to the longest U.S. economic expansion in history, which entered its record-setting 121st month this week. It's perhaps best characterized by the excesses of extreme wealth and an ever-widening chasm between the unfathomably rich and everyone else. The number of billionaires in the United States has more than doubled in the last decade, from 267 in 2008 to 607 last year, according to UBS. But there are also signs of struggle and stagnation at lower-income levels. Why you need an investment philosophy. It's crucial to have a comprehensive financial plan that includes your investing road map, writes Kate Stalter, a financial expert and contributor to the U.S. News Smarter Investor blog. Once you have that guide, you determine your investment philosophy. This will help you remain disciplined throughout bull markets and bear markets. How risky should you be with your retirement portfolio? Retirees today face a challenging conundrum: How to invest in retirement with enough risk to maintain your purchasing power for 30-plus years while not taking so much risk that you leave your underbelly exposed. Faced with these two financial hurdles, some are advocating the need for more aggressive investing in retirement, writes U.S. News investing reporter Coryanne Hicks.
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EXPLORE STOCK AND FUND RANKINGS
Top Large-Cap Value ETFs to Buy
Data as of July 2nd, 2019
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