Category: Investing

A couple of nights ago I was shooting the breeze with a guy on the 19th hole and he mentioned to me that he owned Intel (INTC).  The memories from 2000 are finally starting to fade, so I don’t twitch as much when people mention technology stocks. He said that he had purchased Intel at $36.  I knew that it was selling around $24, but had no idea that it hadn’t seen $36 since January 2001.  Has buy and hold worked for anyone other than Warren Buffett? I abandoned it after almost being wiped out during the internet implosion. 

On the August 9th show, the CNBC Fast Money traders discussed strategies on how to manage in such volatile markets (video here).  Eric Bolling doesn’t like selling in down markets, but prefers to put hedges in place.  Jeff Macke suggests selling until you can sleep.  No one said not to worry because the market averages 10% annually over time.  Matter of fact, the next time you hear that spiel put your hand on your wallet and run. 

Continue reading “Leave Buy and Hold to the Billionaires”

I have been sold on soft commodities (corn, wheat, soybeans, etc.) since reading Jim Roger’s “Hot Commodities” a few years ago.  However, his preferred implementation is through futures or commodity index funds.  Neither is of interest to me. So, when CNBC Fast Money’s Eric Bolling provided an update of his Ag Play on June 15th – I was all ears. 

I have been leveraging oil as well as precious and base metals through companies that produce and service those industries for years.  So, Bolling’s play of Monsanto Company (MON), a seed producer, Agrium Inc. (AGU), a fertilizer supplier, Bunge Limited (BG), a grain and seed processor and Deere (DE), a farming equipment company was consistent with my existing strategies.

Continue reading “The Best Stock Plays to Capitalize on the Soft Commodity Boom”

As gas prices continue going up, the debates are getting more emotional.  About a month ago I had an interesting discussion or should I say argument about escalating gas prices.  My “friend” adamantly put the blame on the oil companies. My argument about a few billion new entrants into the global economy creating supply/demand imbalances fell on deaf ears. 

Regardless of the cause, there is absolutely nothing you or I can do about the price the oil.  I have stopped worrying over things that are out of my control.  I prefer looking for the opportunity in the crisis.  The formula for investors is simple, increased revenue with relatively fixed expenses generates outsized profits.  Buying stock in such companies offset rising prices at the pump, grocery stores or anywhere else. 

Continue reading “Outraged at Oil Companies, but Not Chicken Farmers?”