How to Beat the Market with Graham, Buffett, Lynch, and the Gurus

In a wide-ranging interview with The Kirk Report, Validea founder and CEO John Reese explains how he developed his guru-based investment strategy, why it has been so successful, and what individual investors can do to beat the market. Among the many topics the interview covers: How Reese was able to take the published strategies of investment greats like Peter Lynch, Benjamin Graham, Warren Buffett, and several others and turn them into computerized stock-screening tools that… Read More

Gross Says to Buy Utilities

Bond guru Bill Gross of PIMCO is finding value in at least one area of the stock market: utilities. In his monthly investment commentary on PIMCO’s web site, Gross talks extensively about the sub-1% money market yields that investors are faced with amid the Federal Reserve’s low-interest-rate push. While that might have been acceptable during the financial crisis last year, the stabilizing economy and resurgent asset prices have meant many investors “are suddenly waking up… Read More

Dreman: Correction, Major Inflation Coming

Noted contrarian investor and author David Dreman says a correction is coming for the stock market — but he says investors are best off just holding their ground and riding through it. In an interview with Fox Business, Dreman says it’s too hard to tell exactly when the correction will occur. And, given his belief that stocks are headed higher over the longer haul, he says investors shouldn’t try to time the correction. Dreman also… Read More

Paulson Bets Big on Gold …

Hedge fund guru John Paulson is making a big move into gold, launching a new fund that focuses on shares of gold miners and other gold-related shares and gold derivatives, The Wall Street Journal reports. Paulson’s hedge fund is already a “major holder” of gold shares, including AngloGold Ashanti Ltd. and Kinross Gold, according to the Journal, which, citing the fund’s investors, says that Paulson has more than 10% of his $30 billion or so… Read More

… but Buffett Steering Clear of Bullion

While one of the world’s best investors, John Paulson, is making a big bet on gold, another — Warren Buffett — is looking elsewhere. David Pett of Canada’s Financial Post notes that Berkshire Hathaway’s latest holdings disclosure “indicates that the world’s greatest investor isn’t loading up on gold or precious metals. Indeed, he lists no mining companies among his holdings.” The lack of gold in Berkshire’s portfolio is notable, Pett says, because Buffett has said… Read More

Sonders vs. Whitney on Market’s Current Valuation

Banking analyst Meredith Whitney rattled the markets yesterday when she told CNBC that the U.S. is likely to fall back into recession next year, and said stocks are overvalued. “I haven’t been this bearish in a year,” said Whitney. “I look at the board and every single stock from Tiffany to Bank of America to Caterpillar is up. But there is no fundamental rooting as to why these names are up — particularly in the… Read More

Siegel Says Rally Has Plenty of Room to Run

While stocks are up some 60% from their March lows, author and Wharton Professor Jeremy Siegel says the rally is “far from exhausted”. In his column on Yahoo! Finance, Siegel says that stocks may appear to be overvalued using 2009 projected earnings per share. According to those projected EPS, the S&P 500 has a P/E ratio of about 19, above the historical average of about 15. “But basing stock values on 2009 earnings is inappropriate,”… Read More

Faber: Still Opportunities in Stocks

Marc Faber of the Gloom, Boom & Doom Report still sees opportunities in stocks after the big rally, and says stocks can help protect against the high inflation he’s expecting down the line. Faber, who counts the 1987 crash and the recent March low among his prescient market calls, tells Bloomberg that stocks aren’t very expensive considering current interest rates, and says he’s high on several emerging market nations in Asia. He also gives his… Read More

Avoid “Confirmation Bias”

In his latest Wall Street Journal column, Jason Zweig discusses one of the behavioral pitfalls that can drag down many investors’ portfolios: confirmation bias. What is confirmation bias? “In short,” Zweig explains, “your own mind acts like a compulsive yes-man who echoes whatever you want to believe. … A recent analysis of psychological studies with nearly 8,000 participants concluded that people are twice as likely to seek information that confirms what they already believe as… Read More