Analyst Articles

A few weeks ago, I talked about how my Top 10 Stocks readers and I were able to book a 60% gain from one of the most innovative companies in America. I told you about how Alcoa (NYSE: AA) recently underwent an impressive transformation from being a boring aluminum giant to becoming a high-tech materials powerhouse. But I also mentioned that Alcoa wasn’t alone among American companies when it comes to ground-breaking innovation. That’s why today, I want to tell you about a company that I think is the single most innovative company in… Read More

A few weeks ago, I talked about how my Top 10 Stocks readers and I were able to book a 60% gain from one of the most innovative companies in America. I told you about how Alcoa (NYSE: AA) recently underwent an impressive transformation from being a boring aluminum giant to becoming a high-tech materials powerhouse. But I also mentioned that Alcoa wasn’t alone among American companies when it comes to ground-breaking innovation. That’s why today, I want to tell you about a company that I think is the single most innovative company in America. If you buy it today, there’s a strong chance it could lead to the same kinds of returns as we made on Alcoa. #-ad_banner-#But before I tell you about this company, let me first back up and explain what’s happening. In short, I believe a subtle but powerful shift is underway in American industry. While places like China and Latin America have huge advantages over U.S. firms when it comes to lower production costs and cheap labor, savvy U.S. firms are using ingenuity and expertise as their primary competitive advantage in the global… Read More

Let me start with a simple confession — I love luxury hotels. There’s simply nothing like a great living space to make you feel like a million dollars when on vacation or business. I can still remember vividly the thrill I had when I last got a luxury room a few years ago at the Ritz-Carlton hotel. That time when the bellboy led me down the hall and swiped the special card for the doors that led into the coveted presidential suite. The room didn’t disappoint. The wall-to-wall marble and gold trim were immediately… Read More

Let me start with a simple confession — I love luxury hotels. There’s simply nothing like a great living space to make you feel like a million dollars when on vacation or business. I can still remember vividly the thrill I had when I last got a luxury room a few years ago at the Ritz-Carlton hotel. That time when the bellboy led me down the hall and swiped the special card for the doors that led into the coveted presidential suite. The room didn’t disappoint. The wall-to-wall marble and gold trim were immediately eye-catching. The furniture was immaculate and perfectly laid out. The kitchen and bar were fully stocked. It was paradise with a card key. #-ad_banner-#I enjoyed those days immensely. In fact, I didn’t leave the room much — instead having people come up for meetings in the lavish sitting area. I remember one incident where a guest asked if he could smoke in the room — and upon phoning the front desk, I was told, “Sir, you can do whatever you like.” This feeling is the power of the luxury brand. It’s not hard to… Read More

Thomas Edison went through thousands of trials while he was inventing the light bulb. He struck out again and again, until finally… there was light. Later, he was asked if it was daunting, failing like that so many times. #-ad_banner-#His pithy reply has become famous: “If I find 10,000 ways something won’t work, I haven’t failed. I am not discouraged, because every wrong attempt discarded is another step forward.” It’s exactly that spirit of innovation and invention that’ drives many of the stocks I choose for my premium newsletter advisory, Top 10 Stocks. In… Read More

Thomas Edison went through thousands of trials while he was inventing the light bulb. He struck out again and again, until finally… there was light. Later, he was asked if it was daunting, failing like that so many times. #-ad_banner-#His pithy reply has become famous: “If I find 10,000 ways something won’t work, I haven’t failed. I am not discouraged, because every wrong attempt discarded is another step forward.” It’s exactly that spirit of innovation and invention that’ drives many of the stocks I choose for my premium newsletter advisory, Top 10 Stocks. In fact, I even have a name for these stocks… I call them “American Innovators.” And today, I want to share with you one recent example of the kind of success we’ve had investing in American Innovators. I firmly believe the recent success we’ve had from this pick is a signal of further big changes coming for American industry — and that it will create substantial opportunities most investors have no idea are coming. On June 26 this year, I sold my holdings in Alcoa (NYSE: AA), locking in a strong gain of more than 60% over… Read More

December 2, 2004 was a pretty good day for Steve Ballmer. On that day, the 49-year-old CEO of Microsoft received a dividend check worth $1.2 billion. Bill Gates, co-founder and Chairman of Microsoft at the time also got a big check. He collected more money in dividends than most people could earn in a thousand lifetimes — nearly $3.4 billion. If you think these two men received these checks because they were Microsoft executives who owned a lot of company stock, you’re right… but only partially. #-ad_banner-#There’s another reason they got this massive payday… a reason that could bring you… Read More

December 2, 2004 was a pretty good day for Steve Ballmer. On that day, the 49-year-old CEO of Microsoft received a dividend check worth $1.2 billion. Bill Gates, co-founder and Chairman of Microsoft at the time also got a big check. He collected more money in dividends than most people could earn in a thousand lifetimes — nearly $3.4 billion. If you think these two men received these checks because they were Microsoft executives who owned a lot of company stock, you’re right… but only partially. #-ad_banner-#There’s another reason they got this massive payday… a reason that could bring you thousands of dollars in 2014. As you know, most dividend-paying stocks pay quarterly. Occasionally, you’ll find a stock that pays monthly. To most investors, that’s as good as income investing gets. But what the majority of investors don’t realize is this: The stocks that give you the most potential for low-risk, high yields of 10% or more are from companies that have boatloads of cash and a history of paying special dividends. In fact, it’s entirely possible to collect 9 years of quarterly dividend payments (or more) in just one day by investing in dividend payers like this, which I’ll… Read More

The year was 1975. Gerald Ford was president, and Wheel of Fortune had just premiered on NBC. It was also a time when four letters had come to dominate world energy headlines: OPEC.  The Organization of the Petroleum Exporting Countries (OPEC) was originally formed in 1960 by Iraq, Kuwait, Iran, Saudi Arabia and Venezuela (nine other countries would later join). Its mission: to coordinate the policies of the oil-producing countries — essentially making it the world’s largest oil cartel. The emergence of OPEC had thrown markets and energy users into a panic — particularly in the United States, where growing… Read More

The year was 1975. Gerald Ford was president, and Wheel of Fortune had just premiered on NBC. It was also a time when four letters had come to dominate world energy headlines: OPEC.  The Organization of the Petroleum Exporting Countries (OPEC) was originally formed in 1960 by Iraq, Kuwait, Iran, Saudi Arabia and Venezuela (nine other countries would later join). Its mission: to coordinate the policies of the oil-producing countries — essentially making it the world’s largest oil cartel. The emergence of OPEC had thrown markets and energy users into a panic — particularly in the United States, where growing reliance on foreign oil made OPEC-related restrictions an especially frightening prospect. Regulators moved quickly to do everything they could to secure oil supplies, starting with the crude that was being produced in the U.S. One of the big results of these events was the U.S. crude export ban: a moratorium on shipping unprocessed oil overseas… we wanted to keep the precious commodity within our own borders. This became especially apparent in the 1986, when overall American crude output began to plummet. Over the next 20 years oil production sank by over 43% — a loss of about 1.4 billion barrels… Read More

When he buys a stock, Warren Buffett places more emphasis on one factor above almost any other. Since 1986 he has mentioned this single trait more than 20 times in his annual shareholder letters. He calls it “essential for sustained success.” #-ad_banner-#However, you won’t find it listed on a company’s balance sheet. Its value doesn’t rise and fall with the market. And even if a company reports great earnings, the worth of this one advantage still can’t be calculated. But that doesn’t keep it from being a company’s most valuable possession. Take the nasty bear market of 2008 and 2009. Read More

When he buys a stock, Warren Buffett places more emphasis on one factor above almost any other. Since 1986 he has mentioned this single trait more than 20 times in his annual shareholder letters. He calls it “essential for sustained success.” #-ad_banner-#However, you won’t find it listed on a company’s balance sheet. Its value doesn’t rise and fall with the market. And even if a company reports great earnings, the worth of this one advantage still can’t be calculated. But that doesn’t keep it from being a company’s most valuable possession. Take the nasty bear market of 2008 and 2009. From its peak to trough, the S&P lost more than 55%. No investment completely avoided the downfall. Well, almost no investment. Of the 500 stocks in the S&P, only nine made money during that period. Of those nine stocks, six of them (two-thirds) had this advantage. But this advantage also helps these stocks beat the market in uptrends, too. After all, Buffett has made billions thanks to companies with this trait. So what single advantage can capture the attention of Warren Buffett… help a stock beat the market in an uptrend… and help it fall less in a downtrend? That… Read More

On December 20, 1922, a surveyor — J.G. Tierney — made his way along the Colorado River by barge. Tierney, who worked for the U.S. government, was surveying a remote spot in the Mojave Desert called Boulder Canyon. Boulder Canyon sits in the middle of some of the most unforgiving land in America. #-ad_banner-#During the summer, temperatures frequently top out near 120 degrees. Less than five inches of rain fall each year. Rattlesnakes and scorpions hide under rocks. And the sharp cliffs are near-impossible to scale. And yet, this canyon in the heart of the desert holds one of the… Read More

On December 20, 1922, a surveyor — J.G. Tierney — made his way along the Colorado River by barge. Tierney, who worked for the U.S. government, was surveying a remote spot in the Mojave Desert called Boulder Canyon. Boulder Canyon sits in the middle of some of the most unforgiving land in America. #-ad_banner-#During the summer, temperatures frequently top out near 120 degrees. Less than five inches of rain fall each year. Rattlesnakes and scorpions hide under rocks. And the sharp cliffs are near-impossible to scale. And yet, this canyon in the heart of the desert holds one of the greatest investments in U.S. history… one that has generated billions of dollars in wealth and is practically guaranteed to keep doing so for decades. But it wasn’t without its costs. In total, 112 men — beginning with J.G. Tierney, who on that December day drowned after falling off the barge that carried him and his equipment — died to create this investment. I’m talking about Hoover Dam. Before I get too far… no, I am not recommending that you invest in the Hoover Dam. Even if you wanted to, it’s fully owned by the U.S. government. There’s not a stock… Read More

Barring some sort of apocalypse, these companies aren’t going anywhere. #-ad_banner-#Many have been around long before any of us were born — surviving and prospering through wars, recessions, flash crashes and financial panics. It’s not just the companies themselves that have stood the test of time… Investors who bought stock in these companies and held on for the long-term have done well, too. Even with the market roaring back from the depths of the Great Recession, this group of stocks has outperformed. See for yourself… Around the office we have a nickname for these stellar investments. We call… Read More

Barring some sort of apocalypse, these companies aren’t going anywhere. #-ad_banner-#Many have been around long before any of us were born — surviving and prospering through wars, recessions, flash crashes and financial panics. It’s not just the companies themselves that have stood the test of time… Investors who bought stock in these companies and held on for the long-term have done well, too. Even with the market roaring back from the depths of the Great Recession, this group of stocks has outperformed. See for yourself… Around the office we have a nickname for these stellar investments. We call them “Forever Stocks.” That’s because we think they’re such solid companies, they’re worth buying and holding onto for decades. These are world-dominating businesses in their respective industries. But the reason these outstanding companies succeed is because they all have one thing in common… They all own something that no one else can buy or create… or what I like to call “irreplaceable assets.” Whether it’s a hydroelectric dam, a massive land position, railways, airports — these are all irreplaceable assets that can’t be easily replicated. But the irreplaceable assets idea extends beyond just big, physical facilities. Some invaluable, irreplaceable assets… Read More

He is the richest person in history. Warren Buffett? At his peak, Buffett’s wealth is less than one-fifth this man’s fortune. Bill Gates doesn’t even come close. Neither does Wal-Mart founder Sam Walton or telecom magnate — and one of the richest men in the world — Carlos Slim. None of these men can hold a candle to the $336 billion fortune (adjusted for inflation) amassed by a name synonymous with wealth… John D. Rockefeller. #-ad_banner-#But when I tell you I’ve found what I call my “Rockefeller” investment, I’m not saying it because I think it will make us billionaires… Read More

He is the richest person in history. Warren Buffett? At his peak, Buffett’s wealth is less than one-fifth this man’s fortune. Bill Gates doesn’t even come close. Neither does Wal-Mart founder Sam Walton or telecom magnate — and one of the richest men in the world — Carlos Slim. None of these men can hold a candle to the $336 billion fortune (adjusted for inflation) amassed by a name synonymous with wealth… John D. Rockefeller. #-ad_banner-#But when I tell you I’ve found what I call my “Rockefeller” investment, I’m not saying it because I think it will make us billionaires — even though I’d love to be able to say that. No, I call it my “Rockefeller” investment because of what this company invests in. This stock owns a rare breed of assets that are nearly impossible for small investors like you and me to purchase directly. Typically, only major companies or industrial titans like Rockefeller can buy them. Most people know Rockefeller became rich via his company, Standard Oil. And while I want to invest in the same sort of business that he did, my “Rockefeller” pick has nothing to do with oil. But that’s fine by me, because… Read More

A few weeks ago, I told you about a simple strategy that’s never lost money. Put simply, the longer you hold an investment, the better your chances of making a profit. The S&P 500 has never had a losing 20-year span, going all the way back to the 1950s. The key is finding a handful of companies that enjoy huge (and lasting) advantages over the competition… companies that pay their investors each and every year by dishing out fat dividends… and companies buying back massive amounts of their own stock. Once you find them, the strategy is simple — just… Read More

A few weeks ago, I told you about a simple strategy that’s never lost money. Put simply, the longer you hold an investment, the better your chances of making a profit. The S&P 500 has never had a losing 20-year span, going all the way back to the 1950s. The key is finding a handful of companies that enjoy huge (and lasting) advantages over the competition… companies that pay their investors each and every year by dishing out fat dividends… and companies buying back massive amounts of their own stock. Once you find them, the strategy is simple — just buy their shares and hold “Forever.” #-ad_banner-#But if you want to see the best reason why investing “Forever” is the smartest way to let the market make you wealthy, pay attention to the table below… I ran a simple stock screen on my research team’s Bloomberg terminal. I wanted to find all the stocks in the United States that have returned more than 500% in the past year. To make sure we were dealing with solid companies, I only included companies with positive earnings. And to weed out the fly-by-night penny stocks, I had to kick out anything with a… Read More