Five Questions: The Man Who Solved the Market with Gregory Zuckerman

If I asked you to name the greatest investor of all time, you would likely immediately think of Warren Buffett. And there is good reason for that. Buffett has put up 20% annual returns since 1965, which is about double what the market returned over the same period. If you didn’t name Buffett, you might think of Peter Lynch, which would be another good choice. Lynch steered the Magellan Fund to a 29% return from… Read More

Charts that Scare Wall Street

A recent article in Bloomberg offers a compilation of what it calls “Wall Street’s chilling charts” that highlight ongoing concerns about high levels of corporate debt, volatile markets and the “ills in industrial sectors of the economy.” The charts are captioned by comments from industry professionals. Here is a sampling of the data and comments featured in the article: Quality: Jill Carey Hall of Bank of America Merrill Lynch says that quality has grown scarce… Read More

Netflix’s 23,000% Gain Isn’t the Century’s Top Performance

A $100 investment in Netflix at the beginning of the century would have landed you $23,000 today, but a recent article in MarketWatch reports that it’s the second-best performer. “Cost-estimating website HowMuch.net took a look at some of the hottest stocks of the 21st century and found that, while the streaming giant has, indeed, enriched its shareholders, Monster Beverage dominates the competition in terms of returns over the past two decades.” As of October 22nd,… Read More

Nobel Laureate on Solving the ‘Nastiest, Hardest’ Problem in Retirement

A few decades ago, Nobel Prize-winning economist William Sharpe—creator of the Capital Asset Pricing Model (CAPM) and the return metric called the Sharpe ratio—turned his attention to the risk Americans face of potentially running out of money in retirement. This according to a recent article in Barron’s. Sharpe created a computer program that covered 100,000 retirement-income scenarios based on different combinations of life spans and investment returns for a retired couple—which is available in a… Read More

Stock Market Needs ‘Knights of Faith’

In a recent Wall Street Journal article, columnist Jason Zweig argues that it’s now easier for investors to recover losses after a market dip due to lower trading costs and advances in technology. Even though investors are facing a situation in which future stock returns “may well be lower than the past decade’s lavish annual average of nearly 14%,” Zweig writes, “we should thank our lucky stars for living at a time when we can… Read More

Tudor Jones Sees Growth Environment

At the Greenwich Economic Forum held earlier this month, billionaire hedge fund manager Paul Tudor Jones said equities are being bolstered in a big way by efforts to stimulate global economies. This according to a recent article in Bloomberg. Jones argued that low interest rates and budget deficit spending will be a “boon” for the markets: “I just look at the fiscal monetary mix, it’s the most stimulative that I think I’ve ever seen. It’s… Read More

Gundlach Expects Trouble for U.S. Equities

In an interview with Finanz und Wirtschaft, DoubleLine CEO Jeffrey Gundlach expressed concern for U.S. equities as a result of the levels of government and corporate debt, arguing that investors must “brace for significant disruptions.’ Here are highlights from Gundlach’s comments: Investors should begin preparing for the next downturn now, even though we can’t know when it will come: “If you don’t start preparing now, you will maybe do better while the economy continues to… Read More

Most Stocks Lifted by Earnings Tides

Investors’ willingness to overlook earnings misses– and bid up shares of businesses that exceed earning expectations—is lifting the overall market. This according to a recent article in The Wall Street Journal. The article cites FactSet data showing that “shares of companies that topped analysts’ forecasts rose an average of 2% in the two days after reporting results, beating the five-year average of 1%.” It adds, “those that fell short have averaged a 2.1% pullback, below… Read More

Buffett’s Berkshire Hathaway See Record Profits and Cash

Berkshire Hathaway’s operating profit peaked in the third quarter, pushing the conglomerate’s 2019 net income to “a staggering $52 billion, making Berkshire the most profitable public company in the world.” This according to an article in Bloomberg. The article notes that Buffett also “has more cash than ever to play with: $128 billion. That’s the record which has Berkshire’s stock languishing as investors grapple with a question amid all the superlatives: what comes next?” CFRA… Read More

Jim Simons and the Best Hedge Fund Ever

In a recent Bloomberg article, columnist Barry Ritholtz reviews the new book by Wall Street Journal reporter Greg Zuckerman, “The Man Who Solved the Market: How Jim Simons Launched the Quant Revolution.” Ritholtz describes the book about Simons, a former math professor and code breaker for the Institute of Defense Analyses, as “compelling, filled with so many fascinating characters and new information, that it demands a review.” Author Zuckerman reportedly spent over two years researching… Read More