Archive for the ‘Investment Intelligence’ Category

In the short run, the market is a voting machine but in the long run, it is a weighing machine.

— Benjamin Graham (1950, Creative Commons)

In some ways, it is beginning to feel like 1999 once again. Companies with sky-high valuations are being purchased because of their cool stories instead of their earnings or underlying fundamentals. When evaluating a stock, always look at what the numbers are telling you, and always ask yourself, “What unique product and/or service is this company offering that others need or want, and what is keeping the competition at bay?” (If it is your own company/idea, ask yourself the same thing!) These simple questions should allow you to make money from the mistakes of others—those who didn’t bother to do their own homework.

—Mike Hazell, Penn Wealth

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People are always asking me, where is the outlook good? But that’s the wrong question. The right question is: Where is the outlook most miserable?

—Sir John Templeton (Photo courtesy of the John Templeton Foundation)

John Templeton was one of the greatest value and international investors of the 20th century. He made a fortune by sifting through forlorn or forgotten sectors or industries in search of hidden gems. Fittingly, one of his first investment moves came as America was reeling from a decade of depression and economic turmoil, and as Hitler was invading Poland to begin a world war. He called his broker and requested to buy 100 shares of every company trading for under $1 per share. There were 104 such companies. Over the course of World War II, that investment went up 400%. While everyone else was battening down the hatches, Sir John was looking for opportunities.

—MSH, Penn Wealth

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