Buffett and the Financial Crisis: A Mixed Bag of Results

In a recent update made to her best selling book The Snowball: Warren Buffett and the Business of Life, Alice Schroeder has added a new 31 page section that outlines both the positives and negatives of Warren Buffett’s handling of the recent financial crisis. Although Buffett became a public symbol of prudence during the crisis, Schroeder also details some of his moves that potentially made Berkshire a weaker company financially. In an excerpt from the… Read More

Recovery Still in Early Phases, Paulsen Says

James Paulsen, chief investment officer of Wells Capital Management, says the market has a ways to run, and that there are signs the economic recovery is self-sustaining — not simply driven by stimulus funding. Paulsen tells Yahoo! TechTicker that he doesn’t think the market’s rise will be a straight line upward, but he does say that he thinks we’re “very early” in the stock market and economic recoveries, and that we’ll see new highs in… Read More

Has the Housing Market Turned? Nope, Say Tilson & Heins

In their latest column for Kiplinger’s, Whitney Tilson and John Heins — who were way ahead of the curve in predicting the housing crisis — say they don’t think the housing collapse is behind us. “As much as we’d like to believe otherwise, we expect housing prices to resume their decline well into 2010,” the duo writes. “As a result, financial companies exposed to the housing sector will endure substantially higher-than-normal losses for several more… Read More

O’Shaughnessy Sees S&P 1200 by mid-2010

In Barron’s latest Big Money Poll, about 60% of money managers say they are bullish or very bullish on the stock market through the middle of 2010, though nearly half say they think there’s a 50% or greater chance of a sharp correction in coming months. The bullish respondents, on average, expect the Dow to climb 5% or so to 10,187 by year-end, and expect it will reach 10,771 by mid-2010, Barron’s reports. They expect… Read More

Doll Says Market Hasn’t Hit Cyclical High

Bob Doll, chief investment officer for global equities as Blackrock, tells Bloomberg that he’s recently cut back a bit on some healthcare stocks and added to cyclical areas like energy. Doll also says that the economic recovery will be atypical, with slower growth and periods of doubt, but he thinks we still haven’t seen the market’s cyclical high yet. [youtube=http://www.youtube.com/watch?v=MvrHyXU2Z_o]

Buckingham Says There’s Value in Those Left Behind

While the market is up well over 50% since its March low, money manager John Buckingham says you can still find values — particularly in areas left behind in the recent rally. “This a rally that has been led by the risky stuff,” Buckingham tells BusinessWeek. “Investors should be gravitating toward the names that really haven’t had a great performance in the [market] recovery.” Buckingham says to start with large, dividend-paying companies with safe reputations.… Read More

Top Manager Says Market Has More Room to Run

Dan Chung, CEO and chief investment officer of Fred Alger Management (whose Alger Funds as a whole have significantly outperformed the broader market for the past three and five years) says upside earning surprises, poor yields on cash, and the international nature of many companies will spur the stock market higher. “We’ll see more fundamental upside [earnings] surprises in the third and fourth quarters, and the wall of cash on the sidelines” that’s fetching “terrible”… Read More

The Stealth Bull Market

MarketWatch’s Mark Hulbert says that, while the market has continued its upward trend in the past few months, sentiment remains quite low among market-timers — and that’s good news for stocks. As of Thursday, the shortest-term market-timers tracked by Hulbert’s Hulbert Financial Digest, on average, recommended that investors be 19.4% in stocks. “Though that may strike you as surprising, it is precisely what contrarian theory would suggest: The bull market is climbing a wall of… Read More

Gabelli Says “Plain Ol’ Stock Picking” Still Works

In an interview with CNBC, GAMCO’s Mario Gabelli says the way to make money in a fairly flat market is by going back to “plain ol’ stock picking” — and says that the “new normal” will look a lot like the old normal. “It’s not the new normal — it’s the way it used to be” until the financial sector blew up, Gabelli says. He adds that he expects “the strong will get stronger,” citing… Read More

“High-Quality” Picks from the Gurus

In the past two days, two of the most successful gurus I follow — GMO’s Jeremy Grantham and Gotham Capital’s Joel Greenblatt — have said that they are seeing a lot of value in “high-quality” stocks, as opposed to the junk-type stocks that have led the recent market surge. In his third-quarter letter, Grantham says that U.S. “quality stocks (high, stable return and low debt)”, are now trading at “genuine outlier levels” compared to the… Read More