The notion of a wide moat around your castle has been around for centuries. The early moats were designed to repel rivals and prevent them from invading and conquering. Today’s moats also keep rivals at bay. Companies that have built a solid moat around their business, limiting the threat of competition and price wars to some degree, tend to garner higher valuations from investors. How do we know that? Because the Market Vectors Wide Moat ETF (NYSE: MOAT) exchange-traded fund (ETF), which debuted in April 2012, is handily outperforming its benchmark, the S&P 500 Index. The question for… Read More

The notion of a wide moat around your castle has been around for centuries. The early moats were designed to repel rivals and prevent them from invading and conquering. Today’s moats also keep rivals at bay. Companies that have built a solid moat around their business, limiting the threat of competition and price wars to some degree, tend to garner higher valuations from investors. How do we know that? Because the Market Vectors Wide Moat ETF (NYSE: MOAT) exchange-traded fund (ETF), which debuted in April 2012, is handily outperforming its benchmark, the S&P 500 Index. The question for investors: Is it better to own this fund, or to try to find your own companies with solid moats? To answer this, let’s first look at how this ETF is constructed. Deep Concentration Unlike many ETFs that own a tiny slice of hundreds of companies, this ETF has a roughly 5% weighting in just 20 companies. In the portfolio, you’ll find household names such as Coca-Cola (NYSE: KO), Cisco Systems (Nasdaq: CSCO), eBay (Nasdaq: EBAY) and Bank of New York (NYSE: BNY). It’s immediately clear why companies like Cisco or eBay get the nod as they possess the products… Read More

In many ways, using a tablet or smartphone at work beats a rigid desktop computer.#-ad_banner-#​ The portability of mobile devices makes it easier to perform tasks from anywhere — the lunchroom, a co-worker’s desk, at home, even in the car. Plus, it’s way more convenient to be able to access work and personal emails, files and apps on one device.  A recent study showed that almost 60% of employees bring some type of mobile device into the workplace. The act has become so commonplace that it now has its own acronym: BYOD (bring your own device). By the… Read More

In many ways, using a tablet or smartphone at work beats a rigid desktop computer.#-ad_banner-#​ The portability of mobile devices makes it easier to perform tasks from anywhere — the lunchroom, a co-worker’s desk, at home, even in the car. Plus, it’s way more convenient to be able to access work and personal emails, files and apps on one device.  A recent study showed that almost 60% of employees bring some type of mobile device into the workplace. The act has become so commonplace that it now has its own acronym: BYOD (bring your own device). By the end of this year, the number of mobile devices (mostly mobile phones) in the workplace is expected to reach 350 million globally. A whopping 57% of full-time employees are already using mobile devices for work-related tasks — half of which is unmonitored, unmanaged BYOD activity.  We love our toys, but mixing business with recreation presents huge headaches for the IT workers responsible for keeping company data secure and knowing who has which apps (and why and where). Workers who innocently hook up devices to company networks, download applications, access email and connect to private Wi-Fi networks can cause major disruptions. … Read More

Tracking the moves of insiders can often lead you to small, unknown companies that have a great deal of promise.  On the daily list of buys, you only rarely come across major insider buying involving large companies. But in the past few weeks and months, there’s been impressive clusters of buying among companies in the S&P 500. Three of them caught my eye. 1. Symantec (Nasdaq: SYMC ) President and CEO James Bennett just plunked down more than $2 million to buy 100,000 shares. This wasn’t just the conversion of stock options that you often find on insider… Read More

Tracking the moves of insiders can often lead you to small, unknown companies that have a great deal of promise.  On the daily list of buys, you only rarely come across major insider buying involving large companies. But in the past few weeks and months, there’s been impressive clusters of buying among companies in the S&P 500. Three of them caught my eye. 1. Symantec (Nasdaq: SYMC ) President and CEO James Bennett just plunked down more than $2 million to buy 100,000 shares. This wasn’t just the conversion of stock options that you often find on insider buying lists, but an actual purchase with real money. The move came after Bennett needed to rein in profit expectations amid a companywide restructuring. Make no mistake, software security vendor Symantec was in need of a shake-up. The company had seen robust growth in the past decade, as sales shot up from $2.6 billion in fiscal 2005 to $6.2 billion by 2009. However, sales in the current fiscal year are expected to be only 10% higher, equating to a compound growth rate of less than 2%. In the current quarter (which ends in December), sales are expected to fall 9% from a… Read More

Momentum remains on the side of technology giant Google (Nasdaq: GOOG) despite the large gains the it has made this year.#-ad_banner-#​ Following a big post-earnings rally in mid-October, GOOG consolidated and is forming a tight bullish wedge pattern. This offers traders another juicy long-side breakout trade.  Tight patterns often lead to quick moves. A break to new highs would keep the momentum on the side of the bulls, while any break below the consolidation pattern would be equally bearish and serve as an automatic stop-out area. Google reported third-quarter results after the… Read More

Momentum remains on the side of technology giant Google (Nasdaq: GOOG) despite the large gains the it has made this year.#-ad_banner-#​ Following a big post-earnings rally in mid-October, GOOG consolidated and is forming a tight bullish wedge pattern. This offers traders another juicy long-side breakout trade.  Tight patterns often lead to quick moves. A break to new highs would keep the momentum on the side of the bulls, while any break below the consolidation pattern would be equally bearish and serve as an automatic stop-out area. Google reported third-quarter results after the close Oct. 17, beating analysts’ estimates on all fronts. Earnings per share (EPS) were up 19% to $10.74 from the same quarter a year ago, beating estimates of $10.34. Revenue was up 12% to $14.9 billion, slightly better than the consensus estimate. As a result, GOOG exploded higher on massive volume on Oct. 18, and it hasn’t looked back. Google’s shareholders are no strangers to robust post-earnings moves, but the 13.8% rally was larger than usual, and it took the stock above $1,000 for the first time, setting a new all-time high. GOOG is up 43% this year, and while… Read More

Buying a house is a terrible way to profit from the recovery in the housing market. Houses are illiquid assets. They carry high transaction costs. And they are loaded with expenses such as insurance, maintenance and taxes. When you think about it, a house looks a lot like an “anti-dividend”: Investors pay a lot of money to own them. There’s a better way to cash in on the recovery in housing. This leading homebuilder provides incredible leverage against the ongoing recovery in housing without the burdens of buying a house. And with shares recently dipping 28% while earnings… Read More

Buying a house is a terrible way to profit from the recovery in the housing market. Houses are illiquid assets. They carry high transaction costs. And they are loaded with expenses such as insurance, maintenance and taxes. When you think about it, a house looks a lot like an “anti-dividend”: Investors pay a lot of money to own them. There’s a better way to cash in on the recovery in housing. This leading homebuilder provides incredible leverage against the ongoing recovery in housing without the burdens of buying a house. And with shares recently dipping 28% while earnings estimates continue to surge, this is a rare chance to buy on a pullback. Take a look at the recent pullback in the chart below. With a market cap of $1.5 billion, KB Homes (NYSE: KBH) is one of the largest homebuilders in the United States. Shares had been rallying big on the recovery in housing before this spring’s spike in interest rates triggered a wave of profit-taking that sent KB falling 28% from its recent all-time high.#-ad_banner-# That’s creating an opportunity to buy one of the best housing stocks at a relative discount. And KB has plenty… Read More

I make about 90% of my purchases through the Internet. I have grown weary of pushy, obnoxious salespeople who don’t know the product, fighting traffic in parking lots, and the general schlepping that’s required when shopping the old-fashioned way.#-ad_banner-#​ Online shopping not only eliminates most of the headaches of dealing with the world of retail, but it enables wise price shopping and a mind-boggling array of choices, as well as virtually unlimited product information. Combine these benefits with an often sales-tax-free environment, and online shopping makes for a superior method on multiple levels.  However, a… Read More

I make about 90% of my purchases through the Internet. I have grown weary of pushy, obnoxious salespeople who don’t know the product, fighting traffic in parking lots, and the general schlepping that’s required when shopping the old-fashioned way.#-ad_banner-#​ Online shopping not only eliminates most of the headaches of dealing with the world of retail, but it enables wise price shopping and a mind-boggling array of choices, as well as virtually unlimited product information. Combine these benefits with an often sales-tax-free environment, and online shopping makes for a superior method on multiple levels.  However, a recent very pleasant experience at a big-box retailer has started to change my mind about the superiority of online shopping. I needed to purchase a break-resistant and waterproof case for my son’s tablet computer. He had already left it outside on several occasions and managed to cause a slight crack on the corner of the screen. I knew if I didn’t get him a case soon, the $400 device would soon be damaged beyond repair. I didn’t want to wait to an online order to be delivered, so I went to a local Best Buy (NYSE: BBY) to make the… Read More

Consumer credit is a double-edged sword. Used wisely, it enables smart money management and expense tracking. Misused, it can easily become a crushing financial burden that can only end in lifetime poverty and or bankruptcy.#-ad_banner-#​ While the levels of consumer debt have dropped after hitting a high of $1 trillion in July 2008, this number is still about $855 billion. The standard way consumers access this credit is through the ubiquitous plastic credit card. Although the technological infrastructure has changed greatly, the basic card concept has been in use since the 1950s. Today, there are 1.5 billion credit… Read More

Consumer credit is a double-edged sword. Used wisely, it enables smart money management and expense tracking. Misused, it can easily become a crushing financial burden that can only end in lifetime poverty and or bankruptcy.#-ad_banner-#​ While the levels of consumer debt have dropped after hitting a high of $1 trillion in July 2008, this number is still about $855 billion. The standard way consumers access this credit is through the ubiquitous plastic credit card. Although the technological infrastructure has changed greatly, the basic card concept has been in use since the 1950s. Today, there are 1.5 billion credit cards in the United States; the average credit card user has 3.5 cards. The most popular card is Visa (NYSE: V), with 36% of the market, followed by MasterCard (NYSE: MA), with 27% market penetration, and American Express (NYSE: AXP), with a 6.5% market share.   While consumers’ embrace of debt has declined slightly, it shows no signs of abating. However, the way we access our credit lines is about to undergo a revolutionary change. Let me explain. I stopped into my local Starbucks (NYSE: SBUX) recently to pick up a drink and morning snack. The customer in line in… Read More

Twenty-four billion dollars. That’s how much the political theater in Washington cost the American public according to Standard and Poor’s. The agency expects the loss will shave about 1% off fourth quarter GDP growth. But alas, investors can breathe a sigh of relief as it’s now apparent the U.S. won’t be defaulting on its Treasury payments — at least not yet. According to estimates by the Congressional Budget Office, the bill that raised the debt ceiling and reopened the government should keep the U.S. funded for at least another four months. While the short-term resolution is akin to the proverbial… Read More

Twenty-four billion dollars. That’s how much the political theater in Washington cost the American public according to Standard and Poor’s. The agency expects the loss will shave about 1% off fourth quarter GDP growth. But alas, investors can breathe a sigh of relief as it’s now apparent the U.S. won’t be defaulting on its Treasury payments — at least not yet. According to estimates by the Congressional Budget Office, the bill that raised the debt ceiling and reopened the government should keep the U.S. funded for at least another four months. While the short-term resolution is akin to the proverbial “kicking the can down the road” (setting us up for the same debate come February), the markets have nonetheless rejoiced on the news… #-ad_banner-#In the weeks that followed the debt agreement, the S&P touched a record level of 1,766… gold rallied 7% to $1,350 per ounce and the yield on the 10-year treasury fell to 2.5%. As the euphoria from the announcement wears off, the market is turning its attention to what will likely be the biggest financial event over the next few weeks… earnings season. In case you didn’t know, third quarter earning season is alive and well… And… Read More

Like stars in the sky, the sheer number of differing opinions and interpretations of the same financial data is simply mind-boggling. It is said that if you ask three analysts their opinion on the market, you’ll get five different answers. I can’t think of another field of human endeavor that garners so many different ideas from the same data. Even weather forecasting isn’t as open to interpretation as the financial markets. However, this uncertainty is how the market exists. If everyone had the same opinion, there would be no one to buy the selling or sell into the buying. Read More

Like stars in the sky, the sheer number of differing opinions and interpretations of the same financial data is simply mind-boggling. It is said that if you ask three analysts their opinion on the market, you’ll get five different answers. I can’t think of another field of human endeavor that garners so many different ideas from the same data. Even weather forecasting isn’t as open to interpretation as the financial markets. However, this uncertainty is how the market exists. If everyone had the same opinion, there would be no one to buy the selling or sell into the buying.#-ad_banner-#​ The number and range of differing opinions is why I pay particular attention when two ultra-successful investors agree on the same premise. The famed commodity investor Jim Rogers and Fidelity Investments’ best-known mutual fund manager, Peter Lynch, emphasize investing in what you know. The thinking behind this advice is that if you are familiar with a particular business, service or product, not only are you an expert of sorts, but many others are also likely interested in the same things, which helps create a bullish environment. I took this advice to heart when I realized that a… Read More

Warren Buffett loves to invest in stable businesses with few competitors.  One of his recent favorites is DaVita HealthCare (NYSE: DVA), which operates a network of dialysis treatment centers in the United States catering to patients that have diabetes-induced kidney failure. Buffett’s Berkshire Hathaway (NYSE: BRK-B) has been a steady buyer for several years and now owns nearly 30 million shares, equating to a $1.8 billion stake. But DaVita has a big problem on its hands. Dialysis is expensive, and the two biggest payees for this procedure, Medicare and Medicaid, have been pushing DaVita and its rival Fresenius… Read More

Warren Buffett loves to invest in stable businesses with few competitors.  One of his recent favorites is DaVita HealthCare (NYSE: DVA), which operates a network of dialysis treatment centers in the United States catering to patients that have diabetes-induced kidney failure. Buffett’s Berkshire Hathaway (NYSE: BRK-B) has been a steady buyer for several years and now owns nearly 30 million shares, equating to a $1.8 billion stake. But DaVita has a big problem on its hands. Dialysis is expensive, and the two biggest payees for this procedure, Medicare and Medicaid, have been pushing DaVita and its rival Fresenius Medical Care (NYSE: FMS) to swallow painful reimbursement cuts. It’s not just the administration of dialysis that is costly. Many patients end up with side effects related to iron deficiency and red blood cell production, which costs billions more to remedy. And these costly treatments don’t even yield the desired medical outcomes.#-ad_banner-# Thankfully, one of the biggest providers of the drugs and chemicals used in dialysis has a solution to the problem. Little-known Rockwell Medical (Nasdaq: RMTI) has been testing an iron supplement that goes right into bone marrow. Patients on dialysis stop producing erythropoietin, a key ingredient in the… Read More