Law of Diminishing Returns: Warren Buffett Experiment
Warren Buffet had given the following example as a law of diminishing returns and future revenue growth and I decided to take him up on it. “A growth rate of that magnitude can only be maintained by a very small percentage of large businesses. Here’s a test: Examine the record of, say, the 200 highest earning companies from 1970....More>>>
Shares of Rackspace Hosting (NYSE: RAX ) fell more than 24% Thursday, leaving essentially no investors who believe this is one of the best stocks to invest in now.
Yet the skeptics may be overreaching. Sure, Rackspace’s revenue growth is slowing, but with gross margin rising, concerns over collateral damage caused by an ongoing cloud storage price war between Amazon.com....More>>>
It seems that once you’ve grown large enough to disrupt business as usual for MasterCard (NYSE: MA ) and Visa (NYSE: V ) , you run the risk of getting muscled. MasterCard recently announced plans to raise prices on intermediated payment processors (read: digital wallets) that chose to withhold valuable transaction details from MasterCard. In other words, this measure....More>>>
Japan financial markets will be open for trading Tuesday after a holiday on Monday. Last in, the USD/JPY pair was at 118.31. Some data due to be released are Japanese December bank lending and the November current account balance. Some economic chatter will likely follow the release of some surveys of economists on Japanese growth, inflation and BOJ policy.
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On Monday, small cap Taiwanese advanced display maker Himax Technologies, Inc (NASDAQ: HIMX) announced an agreement with Google (NASDAQ: GOOG) where the later agreed to invest in the company’s subsidiary, Himax Display Inc, fueling ever more speculation about Google Glass – a pair of glasses that will act like a wearable smartphone. But what do we know about this Taiwanese small cap....More>>>
NEW YORK (TheStreet) — Does anyone really know why the markets continue to keep rising? I have heard many reasons and opinions but the fact of the matter is nobody has any clue.
The DJIA once again finished on the upside in Tuesday trading, gaining 2.82 points to close at 16945.92, while the S&P 500 was down fractionally at 1950.79. The Nasdaq closed up 1.75 at 4338 and the Russell....More>>>
U.S. stocks’ amazing run in 2013 raises the stakes for next year. Will markets keep rising, powered by steady economic growth and low interest rates, or will they take a breather after the Federal Reserve begins paring back economic stimulus?
That is the question on the minds of bullish and bearish investors alike as the year winds down. Friday’s 1.3% gain in the Dow Jones Industrial....More>>>
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NEW YORK (CNNMoney) Stocks drifted higher in early trading Monday as U.S. investors got back into action after the long holiday weekend. It will be a week full corporate earnings reports, including well known brands like Netflix (NFLX) and McDonald’s (MCD, Fortune 500) and Facebook (FB, Fortune 500).
The Dow Jones industrial average, the S&P....More>>>
Let’s take a ride on Washington’s energy reform merry-go-round. It’s a popular pastime with lobbyists and their clients, who never tire of filling politicians’ re-election coffers in appreciation of their efforts to restore tax fairness.
And sure, sometimes expediency simply demands that a certain sector or company get a little extra help, just for a year or two.....More>>>
The Dow Jones Industrial Average blithely continues its inexorable climb, rising 63 points, and hitting a new high yet again, even as the PC industry let out a shuddering gasp with its last dying breath.
What held the index back from notching an even better gain was the flop of Hewlett-Packard’s (NYSE: HPQ ) stock, falling 6.5% after market researchers at IDC said that....More>>>
Bloomberg, Getty Images, iStock, Gerardo Tabones
When the White House starts dishing out advice about investing in the global equity markets, apparently short-sellers don’t listen. And why should they?
On March 18, press secretary Jay Carney said that the only investments worth making in Russian equities are wagers that the market will decline.
Anyone paying attention....More>>>
It’s less than two years since Standard Chartered paid a fine for breaking U.S. sanctions on Iran. LONDON (CNNMoney) Remember Standard Chartered, the British bank fined twice in 2012 for sanctions busting and money laundering? Well, it seems the bad behavior continues.
In the small print of its earnings statement Wednesday, the bank said it was expecting another U.S. fine related....More>>>
NEW YORK (CNNMoney) For the fifth consecutive year, the U.S. annual deficit is projected to fall as a share of the economy, and to do so more than previously forecast.
The Congressional Budget Office projected Monday that the 2014 shortfall will decline to 2.8% of GDP — or $492 billion. That’s about $23 billion below what the CBO forecast just a few months ago. And it’s....More>>>
Chicago is a great city, a peculiarly American city. Carl Sandburg’s City of Broad Shoulders, it is the old and the new Mayor Daley, Studs Terkel and Mike Royko. It is an architect’s city, big, friendly and Midwestern.
But even long after Al Capone was taken down over taxes, Chicago seems to grow tax scams. At least that’s one conclusion to draw from several recent court battles....More>>>
After reporting a record quarterly profit of $5.2 billion, Well Fargo’s (NYSE: WFC ) CEO John Stumpf and CFO Tim Sloan walked investors through the bank’s various segments and answered several questions.
While Wells Fargo’s management team doesn’t receive the same level of press as the executives at Bank of America and JPMorgan Chase, Stumpf and Sloan....More>>>