Avoid Companies that Announce These Things

There’s more to actionable trading ideas than just earnings season. Companies often report extraordinary projects well outside their mandated reporting period. And by doing so, they can give investors some timely tips on when to buy—or when to avoid, or even sell, their company’s shares. For instance, a company reporting a new, lavish headquarters building may look like a great investment. They’re clearly growing and need the space, justifying the multi-million (or even multi-billion) dollar investment. But that’s also a sign that a share price is going to lag—or drop entirely. Even great companies like Apple (AAPL) saw a lackluster trading period ...
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Apple Could Be the Next GE

Many investors seem to be on the lookout for the next big thing. They want to find the next Warren Buffett or perhaps the next Warren Buffett Stock.  They might be on the lookout for the next Microsoft, or the next Google, or the next Apple. While these are all worthy pursuits, investors should also consider looking out for the next disaster. For example, they could be on the lookout for the next General Electric (NYSE: GE). The stock suffered an extended sell off over more than two years. It’s important to consider what could have happened to avoid making the mistake ...
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Two Ways Companies Set Themselves Up For Future Success

Investing is a never-ending marathon, not a sprint. Yet Wall Street traders tend to rely heavily on trading opportunities centering on earnings season. Four times a year, a company reports earnings, as well as their guidance for future quarters. These days can see big swings in a company stock price—making it one of the best times to trade. But there are other developments the other 89 days of the quarter. And with so much focus on bottom-line earnings, more mundane announcements often don’t cause a rapid price move in shares. That’s good news—or bad news—for investors, depending on what’s reported. In the ...
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Here’s How to Trade 5G

The next big thing in tech could be 5G. A leading proponent of this technology is President Trump. According to TheHill.com, President Trump recently said in a pair of tweets that he wants the U.S. to beat other nations to rolling out next-generation wireless technology, known as 5G. Source: TheHill.com The political site noted, “Full 5G deployment is still years away, though wireless companies are already making big promises about what the technology will deliver. The new wireless networks, the industry says, will pave the way for advanced technologies like virtual reality and driverless cars while giving users increased mobile ...
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The Buffett Strategy to Create a Virtuous Cycle of Wealth

A good investment policy is one that allows you to profit, reinvest those profits, and follow from a virtuous cycle of increasing returns over time. That’s the policy essentially used—in various forms—by Warren Buffett over the decades to become one of the world’s wealthiest individuals. Whether buying individual shares of stock or entire companies, the principle is the same. You want to find companies that can continue to grow over time at a somewhat steady and predictable rate. Growth companies won’t do. They may end up hitting the skids, and growth companies that fall out of favor tend to get hammered by the markets. But companies in mature, ...
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Trading the Uber and Lyft IPOs

Normally, individual investors have difficulty getting to hot IPOs. An IPO is an initial public offering. It’s when a company sells stock to the public. Sometimes, demand for the stock exceeds supply and that creates a hot IPO which is one that many investors wish they could buy into. Among the hot IPOs expected this year are offerings from the ride share companies Uber and Lyft. Uber could be worth more than $120 billion, according to experts, while Lyft could trade with a value of about $25 billon. But many of the gains will go to company insiders and early ...
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How Young Warren Buffett Routinely Beat the Markets

There are plenty of ways to beat the market. Warren Buffett knows them all. For the most part, he’s also tried them all. Investors with small sums of money can fare well following the modern equivalent of the strategies a young Buffett used to outperform the go-go market of the 1960’s. For example, Buffett often made trades based on arbitrage opportunities. That’s where a stock has one price in one exchange, but a different price in another. Buy in the lower priced and immediately sell in the higher price, and you get an instant profit. Today’s fast-trading, information-efficient markets have made such opportunities ...
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Here’s Why Amazon Paid No Income Taxes for 2018

Amazon, according to the Institute on Taxation and Economic Policy, “nearly doubled its profits to $11.2 billion in 2018 from $5.6 billion the previous year and, once again, didn’t pay a single cent of federal income taxes. The company’s newest corporate filing reveals that, far from paying the statutory 21 percent income tax rate on its U.S. income in 2018, Amazon reported a federal income tax rebate of $129 million. For those who don’t have a pocket calculator handy, that works out to a tax rate of negative 1 percent. The fine print of Amazon’s income tax disclosure shows that this ...
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