Choosing the perfect stock isn’t easy. The trick is finding one that can offer you both safety and growth. Many people would tell you this is impossible — that to see true growth you have to find small, unproven companies… and that to minimize risk, you have to sacrifice gains. But I went on a search to find a powerhouse stock that proves otherwise… and I think I’ve found a prime example. It’s been one of the highest-performing stocks in the market over the past five years. And, it’s also one of the least risky. #-ad_banner-# I’m talking about Starbucks… Read More

Choosing the perfect stock isn’t easy. The trick is finding one that can offer you both safety and growth. Many people would tell you this is impossible — that to see true growth you have to find small, unproven companies… and that to minimize risk, you have to sacrifice gains. But I went on a search to find a powerhouse stock that proves otherwise… and I think I’ve found a prime example. It’s been one of the highest-performing stocks in the market over the past five years. And, it’s also one of the least risky. #-ad_banner-# I’m talking about Starbucks (Nasdaq: SBUX). As you might know, the specialty coffee retailer dominates its market in terms of sheer size — serving up nearly 60 million consumers every week. But that alone doesn’t make it a great investment. What truly makes this company so special is that it carries a unique trait that allows it to lower its market risk… and open the door for big gains. Starbucks possesses what we call an “Irreplaceable Asset.” What is an Irreplaceable Asset? Simply put, it’s something a company owns that no one else can easily buy or create. Whether it’s an airport or railway,… Read More

A decade ago, Apple (Nasdaq: AAPL) was a struggling computer maker on the cusp of reinventing itself, thanks to the imminent launch of iPods, iTunes, and many other hardware and services that would help propel the company to an eventual $585 billion market value. Back then, Google (Nasdaq: GOOG) was also on the cusp of strong growth, thanks to its impressive search engine. Google’s current $400 billion market value is a testament to that company’s greatness. #-ad_banner-#A decade on, Apple and Google have taken aim squarely at each other. Each now offers a mobile phone platform, both companies are using… Read More

A decade ago, Apple (Nasdaq: AAPL) was a struggling computer maker on the cusp of reinventing itself, thanks to the imminent launch of iPods, iTunes, and many other hardware and services that would help propel the company to an eventual $585 billion market value. Back then, Google (Nasdaq: GOOG) was also on the cusp of strong growth, thanks to its impressive search engine. Google’s current $400 billion market value is a testament to that company’s greatness. #-ad_banner-#A decade on, Apple and Google have taken aim squarely at each other. Each now offers a mobile phone platform, both companies are using their operating systems and hardware ecosystems to obliterate the traditional PC industry, each firm is gaining strong traction with their entertainment portals (iTunes and Google Play), and each intends to play a key role in the next generation of car stereos. As these business models converge, it becomes easier to compare these two firms on an apples-to-apples basis. Notably, Apple has become the value play, while in some respects, Google has become the superior growth model. As an example, Apple is settling into a phase of respectable growth while Google is still in the midst of rapid growth. Read More

Despite its pullback Friday, the S&P 500 continues marching to new all-time highs and is just a stone’s throw away from the psychologically significant 2,000 level.  #-ad_banner-#In this positive market environment, it is not difficult to find stocks that have moved higher. Finding the real winners, however, involves spotting stocks that have outperformed the strong market and have clear fundamental reasons for continuing to do so. That leads me to The Walt Disney Co. (NYSE: DIS). This blue-chip stock has significantly outperformed the S&P 500 over the past three years. (Indeed, my colleague Marshall Hargrave thinks the company… Read More

Despite its pullback Friday, the S&P 500 continues marching to new all-time highs and is just a stone’s throw away from the psychologically significant 2,000 level.  #-ad_banner-#In this positive market environment, it is not difficult to find stocks that have moved higher. Finding the real winners, however, involves spotting stocks that have outperformed the strong market and have clear fundamental reasons for continuing to do so. That leads me to The Walt Disney Co. (NYSE: DIS). This blue-chip stock has significantly outperformed the S&P 500 over the past three years. (Indeed, my colleague Marshall Hargrave thinks the company could do the same over the next century .) While the broader market bottomed in early 2009, it wasn’t until October 2011 when the index began its current almost straight-line advance. From its October 2011 lows near 1,075, the S&P 500 is up 85%. DIS has soared more than 200% during that time. As long as the market keeps rising, DIS should at least keep pace. There are several fundamental reasons why I think DIS could continue to outperform the index. The company operates in five segments, with consumer products representing the fastest growing one. This unit makes money by… Read More

It’s not so common anymore for shares of PepsiCo (NYSE: PEP) to make sizable moves, but they did Wednesday when the beverages and snacks giant reported second-quarter performance.  After investors learned PepsiCo had soundly beaten on earnings and slightly exceeded expectations for sales, shares quickly popped more than 3%. They finished the day nearly 2% higher and are now up almost 11% in 2014, versus about an 8% gain for the S&P 500. That’s right — perennial underperformer PepsiCo is beating the market. #-ad_banner-#Thus, investors may be wondering: After many years… Read More

It’s not so common anymore for shares of PepsiCo (NYSE: PEP) to make sizable moves, but they did Wednesday when the beverages and snacks giant reported second-quarter performance.  After investors learned PepsiCo had soundly beaten on earnings and slightly exceeded expectations for sales, shares quickly popped more than 3%. They finished the day nearly 2% higher and are now up almost 11% in 2014, versus about an 8% gain for the S&P 500. That’s right — perennial underperformer PepsiCo is beating the market. #-ad_banner-#Thus, investors may be wondering: After many years of solid but ordinary performance, has PepsiCo managed to shift into a higher gear and become a growth stock once again? Can shareholders now expect it to consistently deliver market-beating returns going forward? I don’t think so.  Despite PepsiCo’s outperformance so far this year, growth investors probably shouldn’t get overly excited about the stock and they’d be prudent to keep its second-quarter performance in perspective. For instance, while earnings per share (EPS) came in at $1.32 after adjusting for charges and topped the consensus estimate of $1.23 by 7%, they were still a mere penny higher than in 2013’s second… Read More

Summer TV is pretty boring, with the exception of the Discovery Channel’s (Nasdaq: DISCA) Shark Week. Choosing between stale reruns or weak summer pilots that didn’t make the cut, it’s no wonder everyone goes on vacation. #-ad_banner-#Recently, hedge fund manager Bill Ackman ‘s seemingly quixotic charge on Herbalife (NYSE: HLF) and the noisy response from the likes of Carl Icahn  and other pundits sounds and feels like a rerun.  So while the hedge fund guys make noise and the market stumbles around trying to digest the events in Israel and Ukraine, investors… Read More

Summer TV is pretty boring, with the exception of the Discovery Channel’s (Nasdaq: DISCA) Shark Week. Choosing between stale reruns or weak summer pilots that didn’t make the cut, it’s no wonder everyone goes on vacation. #-ad_banner-#Recently, hedge fund manager Bill Ackman ‘s seemingly quixotic charge on Herbalife (NYSE: HLF) and the noisy response from the likes of Carl Icahn  and other pundits sounds and feels like a rerun.  So while the hedge fund guys make noise and the market stumbles around trying to digest the events in Israel and Ukraine, investors are probably wise to tune out the noise and focus on finding reasonably priced stocks with strong global franchises and growth strategies.  I’ve found three well-known stocks that fit these criteria perfectly. 1. Vodafone Group (NYSE: VOD ) Flush with cash after selling its giant stake in Verizon (NYSE: VZ), Vodafone continues to be one of my favorite plays in both the telco and frontier market spaces.  Its strongest franchises are in Germany, Italy, Spain, the U.K. and India, where it holds one of the top two positions in each market. The company’s strategy is focused on increasing its share in its… Read More

Do you ever think about which of today’s companies will be around a century from now? #-ad_banner-#You’d be looking for a company that has a strong enough business to survive no matter what. Whether there’s war, depression or natural disasters, you want a company with the resilience to withstand whatever comes its way. To identify this type of investment, you have to be a visionary like Warren Buffett…  Or Steve Jobs.  Jobs is no longer with us, but he had the same foresight when it comes to investing his fortune as he did with Apple (Nasdaq: AAPL) products. Read More

Do you ever think about which of today’s companies will be around a century from now? #-ad_banner-#You’d be looking for a company that has a strong enough business to survive no matter what. Whether there’s war, depression or natural disasters, you want a company with the resilience to withstand whatever comes its way. To identify this type of investment, you have to be a visionary like Warren Buffett…  Or Steve Jobs.  Jobs is no longer with us, but he had the same foresight when it comes to investing his fortune as he did with Apple (Nasdaq: AAPL) products. While Jobs was the visionary behind the iMac, iPod and iPhone, Apple stock represented only a portion of his portfolio. The bulk of Jobs’ fortune was in The Walt Disney Co. (NYSE: DIS). After Jobs’ passing, many had expected his widow, Laurene Powell Jobs, to sell the family’s 7% stake in Disney. However, she has not sold a single share. It appears she’s confident in the company’s long-term future, and rightfully so — Disney is a 100-year stock. DIS is up more than 33% over the past year, compared with the S&P 500’s gain of just over 16%. Powell Jobs’… Read More

Trends are everything in the fashion world. What’s hot one summer will almost certainly look outdated by the next — when it’s been priced to move.  #-ad_banner-#Investors know a little something about trends, too — along with buying the hottest stock versus the one on sale. Value investors pride themselves on finding out-of-favor companies selling at discounted prices and holding them until the market realizes the stock’s intrinsic value. They also know that all trends, no matter which way it’s heading or how strongly it’s moving, eventually reverse direction. One small retailer has had a tumultuous year, dropping… Read More

Trends are everything in the fashion world. What’s hot one summer will almost certainly look outdated by the next — when it’s been priced to move.  #-ad_banner-#Investors know a little something about trends, too — along with buying the hottest stock versus the one on sale. Value investors pride themselves on finding out-of-favor companies selling at discounted prices and holding them until the market realizes the stock’s intrinsic value. They also know that all trends, no matter which way it’s heading or how strongly it’s moving, eventually reverse direction. One small retailer has had a tumultuous year, dropping nearly half its value. Disappointing first-quarter earnings didn’t help investors’ confidence, sending the stock down as much as 10% in a single day.  Yet considering that consumers are spending more as the economy picks up its pace, and industry competitors are making bold acquisitions in anticipation of growth, there’s clearly more to the story here. New York & Co. (NYSE: NWY) is a $219 million woman’s fashion and apparel company with about 500 retail locations and a growing e-commerce base. The company has incorporated many celebrities into its marketing efforts over the years, with its latest a clothing collection in… Read More

The Federal Reserve’s new leader had her “irrational exuberance” moment in her most recent congressional testimony.  #-ad_banner-#Boy, am I glad she got that out of the way. Janet Yellen’s predecessor Alan Greenspan uttered those two words back in 1996, and like him, Yellen seemed to be trying to jawbone stock prices down before they form a bubble and scuttle central bank policy. In 1996 after Greenspan’s remarks, stocks went into a temporary tailspin the next morning — yet an investor who ignored his advance and bought into the S&P 500 a day later has earned a 268% return… Read More

The Federal Reserve’s new leader had her “irrational exuberance” moment in her most recent congressional testimony.  #-ad_banner-#Boy, am I glad she got that out of the way. Janet Yellen’s predecessor Alan Greenspan uttered those two words back in 1996, and like him, Yellen seemed to be trying to jawbone stock prices down before they form a bubble and scuttle central bank policy. In 1996 after Greenspan’s remarks, stocks went into a temporary tailspin the next morning — yet an investor who ignored his advance and bought into the S&P 500 a day later has earned a 268% return since then. Likewise, Yellen probably created a big opportunity this month when she trashed biotech and social media stocks in general, saying they have “overstretched valuations.” Stocks sold off on her remarks.  The problem with a statement that lumps together all the stocks in a sector is that you end up throwing out some gems along with the high-flying duds. I’m not sure about social media stocks, but I do know there are at least three biotech stocks out there with the kind of hyperbolic growth and profit potential that justifies their rising share prices.  Three biotech stocks that should… Read More

Although investing is about making money, I’ve noticed that losses are what really stick out in people’s minds.  #-ad_banner-#If their advisor tells them their portfolio is up say 7% this year, they’ll come back with something like “Yeah, but if such-and-such investment hadn’t tanked, I’d be up 10%.” Because the pain of losses tends to outweigh the thrill of gains, I always try to identify firms that can grow faster than average without excessive risk. One in particular fits this description very nicely, and a big reason I’m bullish on it is it’s in the health care sector. Read More

Although investing is about making money, I’ve noticed that losses are what really stick out in people’s minds.  #-ad_banner-#If their advisor tells them their portfolio is up say 7% this year, they’ll come back with something like “Yeah, but if such-and-such investment hadn’t tanked, I’d be up 10%.” Because the pain of losses tends to outweigh the thrill of gains, I always try to identify firms that can grow faster than average without excessive risk. One in particular fits this description very nicely, and a big reason I’m bullish on it is it’s in the health care sector. Obviously, being in health care doesn’t automatically confer a lower-risk, higher-reward profile. Lots of stocks in the sector could easily lose you buckets of money very fast. But let’s face it, populations in the developed world are aging and increasingly in need of all types of health care. That’ll continue to be great for the profits of well-established health care firms with specific competitive advantages and diverse, evolving product lines — like the firm I just mentioned, Actavis (NYSE: ACT), the world’s third-largest generic drug manufacturer. The company, previously known as Watson Pharmaceuticals, achieved that status… Read More

At the end of World War II, thousands of U.S. soldiers stayed behind in Europe, either as active-duty soldiers or as tourists exploring the continent’s cities and countryside. #-ad_banner-#A key source of appeal: The U.S. dollar was far more powerful than rival European currencies, making all kinds of European goods and services stunningly cheap. Those days are long gone. And if you’ve been abroad in recent years, you haven’t been hearing much about the almighty dollar. In fact, measured against a basket of other top currencies, the U.S. dollar index has slid from 96 in 2004 to 88 in 2009,… Read More

At the end of World War II, thousands of U.S. soldiers stayed behind in Europe, either as active-duty soldiers or as tourists exploring the continent’s cities and countryside. #-ad_banner-#A key source of appeal: The U.S. dollar was far more powerful than rival European currencies, making all kinds of European goods and services stunningly cheap. Those days are long gone. And if you’ve been abroad in recent years, you haven’t been hearing much about the almighty dollar. In fact, measured against a basket of other top currencies, the U.S. dollar index has slid from 96 in 2004 to 88 in 2009, to a recent 80, according to FXStreet.com. That steady slide has had a broad set of effects on the U.S. economy. Tourists have surely felt the pain, but many U.S. companies have been able to find a more receptive market for their exports. Global oil prices, which are also denominated in dollars, have also been boosted by a weaker greenback. Get ready for the math to start going in reverse: In the years ahead, the stage is set for a dollar rally, which may impact your portfolio in unexpected ways. To understand the looming currency reversal, it helps… Read More