The Best Investment Strategy is Simple, Like Analog Music

UPDATE 5.17.22: Since I wrote the post below back in 2018. Since then, investors have watched as millions of people across the globe piled into speculative cryptocurrency trades. For some that has worked out well, but for many, it has turned into a bloodbath. In light of the recent cryptocurrency collapse, it's a good time to reread the post below on the value of simplicity.  Originally posted on November 7, 2018.  Four years ago, I told readers the story of David L. Stone, the manager of Beacon Hill Fund. The point of my story then, as it is now, was to encourage investors like you to avoid speculation, and instead to be patient with your money. Use simple strategies you can stick to in … [Read More...]

PRICES SOAR: Diesel Shortage Could Cripple America’s Economy

Prices for diesel fuel are soaring, and shortages of the critical transportation fuel could leave economies, including America's, in shambles. At MarketWatch, Dan Molinski reports on the fears of a shortage of diesel, writing: One of the U.S.'s largest truck stops, Love's, said Wednesday it is closely watching its diesel fuel supplies in the Northeast amid growing concerns of industry-wide shortages, but said it has no plans to limit purchases. "Love's is monitoring the fluid situation on the East Coast, we have experienced minimal outages during low traffic hours," Oklahoma-based Love's Travel Stops said in an emailed statement. "The company has no plans to restrict purchases of … [Read More...]

A Cashless Society Is A Debacle for Americans

A cashless society will allow the elites of society to "monitor, control and tax every transaction," explains Lewellyn H. Rockwell at LewRockwell.com. The aim, explains Rockwell, is the ability to "cut [Americans] off entirely," if they resist. He writes (abridged): The elites have been aiming to eliminate hand-to-hand cash for decades, as it will allow them to monitor, control and tax every transaction. A story in The New York Times exposes what brain-dead Biden and the gang of neo-cons that controls him have in store for us. According to an item that was published April 26, “When Defense Secretary Lloyd J. Austin III declared Monday at the end of a stealth visit to Ukraine that … [Read More...]

When Bigger Is Better

Originally posted October 22, 2021.  Supply chain disruptions and rising raw materials costs are eating into profitability and resulting in shortages of products for many firms. Procter and Gamble is not immune to rising prices and supply chain disruptions, but strong brand value and impressive scale have enabled the company to navigate the environment better than some. Price hikes are being passed onto consumers and P&G is finding a way to keep its products in stock by leveraging its scale. Sharon Terlep writes in The Wall Street Journal: Procter & Gamble Co. said that it expects solid sales and profit growth over the next nine months, even as costs for everything from warehouse … [Read More...]

The Magic of Compound Interest

Back in 1964, I began a lifelong mission as a disciple of compound interest investing. In those earliest days, home base was Clayton Securities at 147 Milk St. in Boston’s financial district.   By 1971 I had gotten into institutional trading and research with Model, Roland & Co. on Federal Street. My first accounts were Fidelity Investments and Wellington Management.  Today, over 50 years have somehow flown by, and I am still doing business, a whole lot of it, daily with Fidelity (my family investment firm’s custodian) and Wellington (my own account’s largest positions).  Wellington, for its part, manages billions of dollars in client assets for Vanguard. In the late 80s and early … [Read More...]

You Won’t Believe How Much My Favorite Investing Book Costs

An interesting article came across my desk late last year. It was from Abe Books, an online used book retailer that sources books from shops across the country. The article was a list of the most expensive books sold by Abe Books up to that point in 2021. There were many fine old books on the list, but one immediately caught my attention—a 1934 first edition of Graham and Dodd’s Security Analysis. The description of the book from Abe Books read: The Bible for stock market investors and the most important finance book of the 20th century. A 1934 first edition, first printing. Graham taught at Columbia University and suffered in the 1929 crash. He prepared a systematic study of investment … [Read More...]

TOP HEAVY: Focus on Big Indexing Could Cause Market Chaos

"The following post is by E.J. Smith, at YourSurvivalGuy.com. There was a time when I would point investors to low-cost index funds, but as you can see, that ship has sailed." — Dick Young In an excellent review of a festering problem in the market today, Randall Smith of The Wall Street Journal, outlines the $1.3 trillion Vanguard Total Stock Market Index Fund (VTI), and the growing importance of the CRSP U.S. Total Market Index to the future of markets. What’s concerning to Your Survival Guy is that the top 10 companies of the CRSP U.S. Total Market Index comprise a quarter of its value. Does anyone remember the plight of the Nifty 50 in the 70s? When people fell out of love with the … [Read More...]

SOLD OUT: Inflation, Supply Issues Limit Customer Options

Companies faced with limited supplies of raw materials and rising costs of goods are narrowing down the models of products they make to only the most profitable. That usually means that they are building the higher-end, pricier models in their product portfolios, leaving families with lower earnings unable to find cheaper alternatives. The Wall Street Journal reports: Anthony Coughlin’s appliance shop has little trouble filling orders for high-tech washing machines or designer ovens. More difficult: satisfying customers on the hunt for bare-bones, low-budget machines. “There was a day when a customer could walk in the door and buy a secondary piece or a landlord special and have 100 … [Read More...]

A Case Study in Dividend Success

At Young Research, when we look for dividend stocks for the Retirement Compounders, we favor companies with strong balance sheets, stable businesses, a healthy dividend yield, and a history of increasing dividends. What does that look like in practical terms? While the ideal company financial position for the RCs can vary by industry and sector, Procter & Gamble serves as a nice case study in dividend success. A Strong Balance Sheet We look for companies with strong balance sheets because financial strength provides flexibility during tumultuous times in the business cycle. Procter & Gamble (P&G) has one of the strongest balance sheets among large U.S. businesses. Its debt is … [Read More...]