Risk and Reward Biotech Style

Potentially large rewards come with significant risks. There is no better example than developing new drugs. Medivation, a biotech company. set an all time high on it’s stock price on Tuesday of $40.49 due to it’s new hopeful Alzheimer’s treatment. But when results were announced today that it failed to be effective in a large […]

Basically, It’s Over…Or Is It?

Warren Buffett, the Oracle of Omaha and the second richest person in the world, released his annual shareholder letter recently. This is required reading for any investment professional. They already know that. You should read it too. But assuming you won’t, I will try to summarize the salient points from which you can learn and […]

Greenspan’s Right

On Meet the Press yesterday, former Federal Reserve Chairman Alan Greenspan said a U.S. economic recovery is “going to be a slow, trudging thing,” and that he “would get very concerned” if stock prices continue to fall. He went on to say that a drop in stock prices is “…more than a warning sign. It’s […]

Superbowl Prediction Folly

Parade, the insert in many Sunday papers has a section called the “Intelligence Report” Intelligent? Well, let’s see about that. The article, The Truth Behind Super Bowl Myths caught my attention today as they knew it would. But the pull quote saying, “Does the big game predict the stock market? Strangely, yes,” made me stop […]

Would you lend money to Portugal?

Portugal’s ability to borrow money stopped yesterday. They tried to sell bonds to raise money to pay its bills. There weren’t enough buyers and they canceled the sale. (I wonder if they actually cut up the national credit card in front of the heads of state or if they just take it away and give […]

When Will We See More Jobs

The recent statistics show unemployment went into double digits rising to 10.2% nationally, more in some local areas. What’s more concerning is that this is a continuation of a steady trend upward with what looks to be no end in sight. Inquiring minds want to know, if we are out of the recession, why aren’t […]

Natural Born Trader

Researchers at the University of Cambridge in England report that men with longer ring fingers, compared to their index finger, tended to be more successful in the frantic high-frequency trading in the London financial district. The same ring-to-index finger ratio has previously been associated with success in competitive sports such as soccer and basketball, the […]

Buffett’s Beloved Brands

Today’s FT reports that Mars along with Warren Buffett’s Berkshire Hathaway has bought Wrigley, the chewing gum giant for $23,000,000,000.00. Mars has put in the majority of the money – going to all equity, but Buffett and Goldman put in a chunk of dough too – all debt. This is the quintessential Buffett deal. A […]

Gold Near 28 Year High – Can that be Good?

Four years ago I was having a beer after a round of golf and the guy next to me said he was 100% in gold. I was stunned. He said that gold is up and going higher, it’s safe, and it will alway have value. (Apparantly the dot com bust got to him.) Cut to […]

What a deal for GM!

They shifted the risk of health care to employees and just made their shareholders a bundle. What a deal! In the recently settled contract negotiations, GM and the UAW agreed to set up a Union managed healthcare fund and GM would put in a one time payment of upwards of $30b. Analysts say that this […]

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