Coca-Cola Company

Trading Strategies

Why I Think One of America's Greatest Investors May Be Digging Through My Mail

Howard Marks, one of the wealthiest investors in the United States, just released his newest investor letter, and in it, I find a few ideas that are eerily similar to what you and I have been talking about for months: Index investing is a dangerous, expensive Wall Street con. 

If you're not familiar with this battle-scarred (and unreasonably wealthy) veteran of the markets, Marks fought his way through both the equity and bond markets for over 40 years.

He also happens to be an extremely incisive writer, with his book, "The Most Important Thing," considered a must-read for anyone looking to achieve success as an independent investor.

In his latest letter, he takes on index investing, an approach that I frequently call a silly waste of time if you're beyond middle age and don't have four or five decades to build your wealth.

Ironically, it was Marks' University of Chicago professors who birthed the idea of index investing in the late 1960s. They saw it as a way to ensure you never underperform the Dow Jones Industrials or S&P 500, as well as never pay ridiculous management fees. (So much for that idea…)

But what most investors don't understand about indexes – and what I want to show you today – is that indexes didn't become popular because the returns are phenomenally good…

… rather, it's because the active managers have phenomenally good salesmen working for them night and day to sell the pipe dream of low-risk, high-return indexing to regular, unsuspecting investors…

In other words, the active managers are phenomenally bad...

Dow Jones

Dow Jones Today Jumps 160 Points as Caterpillar and United Technologies Beat Earnings

This morning, Caterpillar Inc. and United Technologies Corp. pushed the Dow Jones today up 160 points after reporting stronger than expected earnings.

Both reports issued a strong vote of confidence for the global economy, significantly increasing annual production and profit forecasts.

Investors are likely to break the Dow's four-day losing streak today in anticipation of additional earnings reports.

Trading Strategies

Warren Buffett Can't Buy These Unreasonably Profitable Companies; You Can

"What will Warren buy?"

That's the question at the forefront of many people's minds today after Berkshire Hathaway revealed a gigantic $116 billion cash hoard in its annual shareholder letter over the weekend.

It's not just an academic exercise, either. $116 billion is serious money, even in 2018, and when that kind of cash goes into play, it'll have very real implications for every investor.

Naturally, every financial writer on Earth rushed to write "Buffett Will Buy XXX, So You Should Too."

It's a tempting idea. It even tempted me for two seconds or so, until this occurred to me…

With a cash pile of over $116 billion, it makes no sense whatsoever for Buffett and No. 2 man Charlie Munger to buy anything for a penny less than $10 billion.

It just would not move the needle much at all. The not-inconsiderable hassle of filing the regulatory documents for such a deal would make it not worthwhile.

I think it will be much more interesting (and profitable) for us to think about Warren might do if Berkshire was not quite as large and he had a little more flexibility.

Looking at his published acquisition criteria, he likes… the same kinds of companies I do.

Businesses that are consistently profitable, simple to understand and manage, with excellent management willing to stay in place.

I sat down and spent some time thinking about what the Oracle of Omaha would – not should – buy if the size made sense.

What I came up with could make us all (well, except for Buffett) an unreasonably large pile of money...


How to Buy Penny Stocks Online [Step-by-Step]

If you're a newer investor hoping to learn how to place your first stock trade online, by the end of this article, you'll know how to buy penny stocks online.

Whether you want to buy shares of a reliable blue-chip company like Coca-Cola Co….

…or take a chance at 207% returns in just 49 days with penny stocks like Neptune Technologies & Bioressources Inc….

...by the end of this step-by-step guide, you'll know exactly how to do either on Ally's discount online brokerage platform.

Penny stocks

Best Online Brokers for Buying Penny Stocks in 2018

Not all online stock brokers offer access to penny stocks – and especially not at affordable rates.

But today, we'll reveal the best online brokers for buying penny stocks in 2018.

Whether you want to buy shares of reliable blue-chip companies like The Coca-Cola Co….

…or take a chance at 207% returns in just 49 days with penny stocks like Neptune Technologies & Bioressources Inc….

…these online discount brokers will allow you to do both.

We'll show you the easiest online broker to use, and perhaps most importantly, the cheapest online broker available.