An Interesting Sector for Value Investors in 2015

January 7, 2015

2014 is over and the stock market did well for the third year in a row. The market was up 16% in 2012, 32.39% in 2013, and 13.69% in 2014 (including dividends). In other words the S&P 500 is up 62% since 2012. This is an impressive comeback after the -37% drop of 2008. Unfortunately, […]

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Oil prices, the challenge for many economies in 2015

December 4, 2014

2014 is coming to an end, and if anything is becoming crystal clear at the end of this year it is that economies around the world are deeply and intrinsically linked. Since June a roller coaster of events has pushed up the price of the Dollar in Russia by 38%. This is the biggest increase […]

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Why I increased my investment in Energy?

November 7, 2014

While there has been a lot of talk these days about the energy prices, specifically about oil and gas prices, two of my largest holdings are in this sector (Ecopetrol EC and Lukoil LUKOY). In October, I increased my position in Ecopetrol, so the question is why? In order to explain why, first we need […]

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The legacy of Larry Ellison at Oracle

October 9, 2014

Larry Ellison will be remembered for founding one of the most successful companies of our times. Only time will tell if he will also be remembered as king of the acquisition. Ellison, of course, was a specialist in product engineering, but he was also an excellent salesperson to corporate clients and extremely good in analyzing […]

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The future of Intel is not computers, it is wearables, servers and the Internet of things.

September 4, 2014

In 2013, Intel underperformed the Nasdaq index by 12.7%, and investors became concerned about the end of the era of Wintel domination. The Wintel alliance was virtually unstoppable from the 1980s to 2000. In April 2013, the research firm IDC issued an alarming report saying that world-wide shipments of laptops and desktops fell 14% in […]

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The apparel sector is suffering, but not everybody is skinny dipping

August 7, 2014

As Warren Buffett used to say, “Only when the tide goes out do you discover who’s been swimming naked.” That adage applies perfectly to the apparel sector right now. Although the industry has had a terrible year, one of its major players is still financially strong with incredible competitive advantages, and a solid global presence. […]

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Picking up a bargain in June

July 3, 2014

In June, shares of Bed Bath & Beyond (BBBY), one of the most efficiently run companies around, dropped by 5.7%. Year to Date, its shares have dropped 28.53%. This is one of those very rare opportunities to invest in a great company selling at a very good price. Price to sales is just 1.049 and […]

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Apple is back but questions remain

June 4, 2014

On September 21, 2012, Apple reached $700 per share for the first time, only to go back down to $390 six months later. The company has had a fantastic run since 2010, but its current price of $628 is still under the $700 of those glory days in 2012. Apple invests huge amounts of money […]

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JC Penny (JCP) still volatile, but on track to beat the S&P 500 in 2014

May 12, 2014

In my February letter to investors, I explained why I was increasing my position in JC Penny (JCP). Since that post, the stock has continued to be very volatile in 2014 with double-digit gains and drops depending on the day. This is always the case when companies are having trouble, and in the short term, […]

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My JC Penny (JCP) and Ecopetrol (EC) holdings are paying off

April 1, 2014

In my February letter to investors, I explained why I was a believer in the JC Penny (JCP) rebound. I cited some cases throughout history where struggling companies have rebounded, making millions for smart value investors. Warren Buffett did this in the seventies with Geico. By 1974, the company was not fairing well. The government […]

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