Can Margins Expand Forever?

In today’s Financial Times, Tony Jackson examines what he calls the “unsustainable paradox.”, bonds yielding less than equities. He also asks, with corporate profits as a percentage of GDP at near-all-time levels across much of the Western world, can earnings continue to rise? Apparently, Jackson is doubtful. He attributes the recent swelling of corporate coffers [...]

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Horizon Lines report posted and Festival of Stocks

A few weeks ago, I posted about some strange action in Horizon Lines (HRZ) and a few weeks later, Seth Klarman’s Baupost Group disclosed an 11% stake in the company, which may explain the upward price movement. In any event, if the share price holds up at this level, I will be a proud shareholder [...]

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The Fed’s Conundrum

The European Central Bank (ECB) and Bank of England (BOE) both decided to keep rates unchanged last night. This only puts more pressure on the Fed. Several commentators have noted (and I agree) that the Fed needs the cooperation of other central banks if Bernanke and co. wish to continue this cycle of rate-cutting without [...]

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Investment Returns and the Theory of Relativity

What were your returns last year? Well, the answer is, it’s all relative. Many of the mis-categorized perma-bears (Peter Schiff, Jim Rogers, etc.) have repeatedly asserted that diversifying away from the US dollar is essential and that any nominal gains are illusory. Not surprisingly, the mainstream pundits have a very difficult time comprehending this very [...]

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Investing Mistakes in 2007

I’ve always been a nitpicker and it drove my former bandmates nuts and led to a few arguments with fellow campaign workers. In that spirit, I’ve posted my reflection on my biggest investing mistakes of 2007. They’re more general than specific stocks and calls, though there’s some examples in it. I think the interesting lesson [...]

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Now They Really Don’t Know What They’re Talking About!

Bloomberg’s Open Exchange is interviewing Jonathan Lewis, head of some firm which I’m sure manages billions of dollars for someone or other. Most readers of the blog know my pet peeve regarding talking heads who espouse boneheaded strategies and/or outlooks. But this guy Lewis seems to have his data wrong as well. He just mentioned [...]

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