The Enduring Investment Principles Of Warren Buffett
I have recently been reading the 5th edition of The Essays of Warren Buffett edited by Lawrence Cunningham. Reading these excerpts from Buffett’s Berkshire Annual Letters over the years has been an extremely calming experience for me, almost a form…
STZ Earnings Selloff Prices In Mexico Tariff Concerns
Shares of Constellation Brands (STZ) are getting hit hard today (-17%) after reporting 3QFY25 earnings. The stock has been dealing with concerns about Trump placing 25% tariffs on imports of Mexican goods since Mexican beers like Modelo, Corona and Pacifico…
With Rates Rising Rapidly, Extreme Valuation May Now Be A Problem
Probably the most important development in financial markets over the last few months is the steep rise in interest rates. Since the Fed started cutting rates with a 50 basis point cut on September 18, the 10 year yield has…
Why Is The Fed Cutting Rates? Value In The Dating App Stocks, Homebuilders Breaking Down
The Fed is going to cut rates a quarter point on Wednesday – but it shouldn’t and it doesn’t seem like it wants to. The stock market is at all time highs, Bitcoin is over $100,000 and inflation remains stubbornly…
Why The S&P Will Drop 25% in 2025
It’s been a great time in the market with the S&P +31.46% over the last year. But – for a number of reasons – I suspect 2025 will surprise many in being a bad year with the S&P dropping 25%….
No Value In Stocks
When I used to play poker at Casino M8TRIX in San Jose before I moved to Davis, there was a dealer named Errol who liked to trade stocks using technical analysis. One of the stocks that he was bullish on…
BBY & DKS: A Tale Of Two Retailers
Two well known national chain retailers – Best Buy (BBY) and Dick’s Sporting Goods (DKS) – both reported earnings Tuesday morning. BBY shares are off 7% in reaction to their report while DKS is up 8% in reaction to its…
No Value In The Mega Caps
Mega caps – especially the Mag 7 – have driven the market indexes of late but it’s hard to justify further price increases because the stocks are more than fully valued at this stage. That’s not to say the market…
WMT Is Overvalued and Overextended Heading Into Earnings; How I’m Protecting My Profits
Walmart (WMT) is on a tear heading into its 3QFY25 earnings report next Tuesday morning with shares up 60% YTD. Unfortunately, a consequence of that price appreciation is that the stock has become overvalued and overextended. WMT now trades for…
CAVA: Exhaustion Candle
I first wrote about up and coming Mediterranean fast-casual chain CAVA six months ago in “Legendary Days: Adventures In San Diego” (May 16, 2024). I had read about it a Barron’s article about the “next Chipotle”. But since there weren’t…