Buffett’s Best Advice

Fortune is running its annual “Best Advice I Ever Got” issue, with respondents ranging from golfer Tiger Woods to Google CEO Eric Schmidt to former Secretary of State and Ret. Gen. Colin Powell. It’s an interesting feature that often offers timeless, valuable wisdom. In the video below, Warren Buffett shares the best piece of advice he’s ever received, something he picked up 60 years ago from the late, great Benjamin Graham.

Faber: Gold & Equities the Places to Be

Marc Faber, the money manager and Gloom Boom & Doom Report editor who has an excellent track record of market calls, sees severe inflation coming, and says investors should be putting their money in gold and equities — not bonds and cash. Faber says he thinks we most likely saw the market bottom on March 9, in part because any major drops in the market will be met with more government stimulus. But he also… Read More

The Graham Approach: Still Making Hay after 60 Years

Every other issue of The Validea Hot List newsletter examines in detail one of John Reese’s computerized Guru Strategies. This week’s issue looks at the Benjamin Graham-inspired Value Investor strategy, which is up more than 26% this year and has averaged annual returns of more than 16% since its July 2003 inception (vs. an average annual loss of 1.4% for the S&P 500). Below is an excerpt from the newsletter along with several top-scoring stock… Read More

New Normal? For Stocks, More Like Old Normal, O’Neil Says

A lot of investors and strategists are spending a lot of time these days trying to envision what the investment landscape will look like when the economy and market settle down. But growth stock guru William O’Neil, the founder of Investor’s Business Daily, says talk of a new era of investing is off the mark. “Actually, I think the market has reinforced almost every single thing we had in the book [his How to Make… Read More

O’Shaughnessy on Why Stocks Are Still Attractive, and the Value Resurgence

In his latest market commentary, Jim O’Shaughnessy writes that the market is seeing a major flip-flop in leadership similar to what often occurs at the end of recessions, and says that, despite the recent run-up, it’s still a good time to buy stocks. “While many of the once-in-a-lifetime bargains are gone, stocks still look attractively valued,” O’Shaughnessy writes on his asset management Web site. He cites the normalized price/earnings ratio of the S&P 500 (a… Read More

What Will “Normal” Earnings Look Like?

A lot of strategists and investors have been talking about what the “new normal” will look like as the economy recovers from the recent financial crisis and unwinds the excess leverage that many companies and individuals had been using. Mike Thompson, managing director of Standard & Poor’s, offers some interesting thoughts on that new normal in this interview with CNBC. According to Thompson, companies had spent two decades building more leverage into their business models,… Read More

Buffett Isn’t Seeing Green Shoots — But Says They’ll Come

Despite all the talk of “green shoots”, Warren Buffett says that he’s seen no bounce in the economy. He tells CNBC that, while the government has done a good job getting us through the financial crisis, it will take time for the economy to get rolling again. Buffett also gives his take on the need for and challenges involved in new financial regulation, and whether Ben Bernanke deserves to be reappointed as Federal Reserve chairman.… Read More

Dreman “Terrified” of Bonds

Famed contrarian investor David Dreman says inflation concerns have him “terrified” of bonds and seeing good times for stocks and real estate. “I think we’re going to have some of the worst inflation, with all the printing presses around the world running 24/7,” Dreman told Reuters. “Probably the two worst investments over the past two, three years have been stocks and real estate. They could be the best investments two or three years out.”

“Green Shoots” Talk Overdone — Stimulus Underdone, Says Shiller

In an interview with CNBC’s India affiliate, Yale economist Robert Shiller says that governments across the world should be focused on greater economic stimulus — and put concerns about rising national debts and potential inflation on the back-burner — in order to capitalize on the recent jump in confidence. Shiller says that the recent rise in confidence has not been accompanied by true improvement in the economy, and that there’s a chance that confidence could… Read More

Mauldin: This Time It Really Is Different (Sort Of)

In his latest “Thoughts from The Frontline” newsletter, John Mauldin makes a pretty bold proclamation that goes against a long-held principle of investing — this time, he says, things really are different. “If memory serves me, I have written several e-letters disparaging various personages who have uttered those very words, and gone one to confirm later that it wasn’t different,” Mauldin writes. “It almost never is. … But my premise for uttering the heresy ‘This… Read More