According to official data the US economy slowed to a three year low amid lower auto sales, heating bills and slower consumer spending, which grew at a seasonally adjusted annual rate of 0.3 percent. This comes on the back of 2.1 percent fourth quarter GDP. Weak US growth at 0.7% - will @realDonaldTrump tax cuts be enough? pic.twitter.com/L18RdKVjvk — David Thomas … [Read more...] about US Economy Slows To Three Year Low – Auto Sales Hit
The Stock Market
The Ford Motor Company (NYSE: F) is a large cap US stock that appears on my stock market investing watch list and has for some time. The 113 year old Detroit automaker's recent woes have been well documented and can be traced to their bail out by the US government in 2009 to the tune of $5.9 billion which was to be paid off by June 15 2022. Except it was not a … [Read more...] about The Ford Motor Company, Donald Trump And Large-Cap Stock Market Investing
Warren Buffett seldom gives advice and he never tries to predict the stock market. So today's post shares a rare moment where Warren Buffett simply tells it like it is: how to make money from the stock market in a simple, straightforward fashion and especially if you are new to investing or short of time: https://youtu.be/yk94tI_2QOY Here's a transcript: The average … [Read more...] about Warren Buffett’s Stock Market Investment Advice
In a series of posts that sprang from Warren Buffett's latest 13F filing I have responded to two questions on social media regarding the improved fortunes of Southwest Airlines (NYSE: LUV): @djthomas would be interesting to post your GM% improvement for LUV against oil prices to see how much correlation there is. Bet it's a lot. — Peter Harris (@2peterharris) March 20, … [Read more...] about Southwest Airlines (NYSE: LUV) Gross Margin % v Oil Price: Is There A Correlation?
In a post called As Warren Buffett Dumps Retailers And Loads Up On Airlines I took a fleeting look at the improving economics leading to much improved ROIC of listed airlines as a possible reason why Buffett would have bought stock in an industry that he has traditionally shunned throughout his investing career. It has been well documented that low oil prices have … [Read more...] about Has New Tech Been Responsible For The Improved Profitability Of Airlines?
Walmart went. American, Delta, United and Southwest are in. The consensus among those who analyse Buffett's every move reckon it's the drop in oil prices and industry changes that have allowed airlines to generate higher returns than they have previously. In my humble opinion out of the four airlines, Southwest Airlines has shown the steadiest and most progressive … [Read more...] about As Warren Buffett Dumps Retailers And Loads Up On Airlines
So towards the end of last year whilst digging through some old paperwork I came across an old private pension. On closer inspection I found that it was well over 10 years old and had returned 5% annualised which includes ad-hoc contributions I'd made years earlier. 5% annualised is less than some index trackers I've seen which have exceptionally low management fees and … [Read more...] about How I’m Growing My Retirement Fund With Low-Cost Value Investing
According to the retirement consultancy Mercer, at the end of 2015 the combined final salary pension deficit for the FTSE 350 was £39 billion. The FTSE 350 represents approximately 50% of all UK final salary pensions. At the end of 2016 the deficit increased to £137 billion. This massive deficit increase occurred even though firms were making huge contributions and … [Read more...] about Private Sector Pension Deficit Widens By 251% In 2016
We have suggested as a fundamental guiding rule that the investor should never have less than 25% or more than 75% of his funds in common stocks, with consequent inverse range of between 75% and 25% in bonds This sensible advice from Benjamin Graham is aimed at what he called 'defensive investors': The defensive (or passive) investor will place his chief emphasis on the … [Read more...] about How To Allocate Capital Between Stocks and Bonds
News flashed across my screen at the beginning of the year that Anglo American (LSE: AAL) was the best performing FTSE 100 stock in 2016 returning 289%. Not bad for a large cap. Here's what that looks like on a price chart: A pretty impressive run. What's even more impressive is that AAL today is worth £16.28 billion. Not bad considering that AAL was the one of … [Read more...] about Anglo American Returned 289% In 2016 – That Is A LOT
I like unadulterated, virgin raw data. It is much easier for me to get a the truest picture of a firm's past performance when the data I'm staring at has not been 'smoothed' in any way. For me smoothing out exceptional items is like trying to deny history. It happened, get over it. After the 'smoothing process' there is usually an averaging process to try and get an … [Read more...] about Here’s the Value of the S&P 500