Buffett’s Berkshire Makes Big Moves in Q3

Warren Buffett’s Berkshire Hathaway made several changes to its portfolio in the third quarter, cutting back or eliminating several positions while adding one new financial firm to its holdings. Berkshire eliminated its positions in Home Depot, Republic Services, Carmax, Iron Mountain, and NRG Energy, according to CNBC’s Alex Crippen. Meanwhile, it opened a new position in Bank of New York Mellon, buying up almost 2 million shares of the firm. Berkshire also sharply reduced its… Read More

Sonders Optimistic, but Cautions on Emerging Markets

Charles Schwab’s Liz Ann Sonders remains optimistic on the economy and stock market, though she expects a near-term pull back — and says investors should be cautious about emerging market stocks. “We’ve been optimistic about the prospects for the market for some time and continue to believe the general trend of the equity market will be higher,” Sonders, Schwab’s Chief Investment Strategist, writes in her latest market commentary (along with Schwab’s Brad Sorensen and Michelle… Read More

Grantham Says There’s Value in Cash

GMO’s Jeremy Grantham says that both bonds and stocks are overpriced, and that investors should have a substantial portion of their portfolios in cash, allowing them to take advantage when good opportunities do present themselves. “The Fed is driving the S&P [500], which is overpriced … driving it from already substantially overpriced into what I would call dangerously overpriced,” Grantham told CNBC in a lengthy interview. “It wants us to go out there and buy… Read More

Romick Looks to Inflation-Fighters

Top fund manager Steven Romick says that in the current environment, he’s focusing on companies that will be able to handle inflation well. “I’m investing in companies we feel can be protected against inflation, with pricing power that could rise as fast as their costs,” Romick says in an interview with BusinessWeek. He also talks about his overall investing approach, and some broader stock market topics, including volatility. “Volatility is more a measure of opportunity… Read More

The Zweig Strategy: Growth With a Conservative Streak

Every other issue of The Validea Hot List newsletter examines in detail one of John Reese’s computerized Guru Strategies. This latest issue looks at the Martin Zweig-inspired strategy and portfolio, which has averaged returns of more than 7% per year since its inception while the broader market has returned less than 3% per year. Below is an excerpt from today’s newsletter, along with several top-scoring stock ideas based on the Zweig investment strategy. Taken from… Read More

Ritholtz: Investors Should Welcome Uncertainty

Barry Ritholtz of FusionIQ and The Big Picture blog says  that, contrary to popular belief, uncertainty in the market is good for investors. “When the crowd is nervous, it creates opportunities” if you know where to find value, he tells Bloomberg. [youtube=http://www.youtube.com/watch?v=NrmbDuHsa7A]

Gurus Look North with New “Validea Canada” Site

Warren Buffett may have talked up Chinese companies during his recent visit to the Asian power, but Validea CEO John Reese says you don’t have to go that far to find some nice Buffett-style buys. “China certainly offers many good investment options, but Mr. Buffett shouldn’t overlook opportunities closer to home,” Reese writes in his latest article for Canada’s Globe and Mail. “While the Guru Strategy computer model I base on his approach has been… Read More

Tilson Stresses Stock-Picking in “Muddle-Along” Period

Value investor Whitney Tilson says he’s playing defense on the long side of his portfolio while finding plenty of opportunities on the short side. Tilson tells Forbes.com that he sees neither a V-shaped economic recovery nor a double-dip recession as likely. Instead, like Jeremy Grantham, he sees a period of “seven lean years” in which growth is subpar as individuals and governments deleverage. That has him “looking first and foremost for safety: companies with strong… Read More

Top Small-Cap Manager Talks Strategy

Jeff Cardon, whose Wasatch Small-Cap Growth fund has beaten almost 90% of its peers over the past decade, recently discussed his strategy and market outlook with Morningstar. Cardon says he’s keying on high-quality small-caps, which he thinks will fare better in a lower-growth environment than lower-quality peers. “Many companies that recently found success when capital and demand were strong will suffer in the low-growth economy that we are likely to face for at least the… Read More