Investment Information
Are some companies just naturally more profitable than others?
Posted by admin on January 31, 2012 in Investment Information
There are 6 large railways in North America (7 if you count Kansas City Southern as well). Canadian Pacific (CP) is the smallest by market cap and most inefficient among them (see my 2008 post on CP’s ranking among the Class 1 Railroads). Last year, hedge fund Pershing Square Capital Management bought enough shares to [...]
Three keys to saving more
Posted by admin on November 3, 2011 in Investment Information
Is the simple act of willpower, in and of itself, all that is required to become a better saver? In a recent book entitled Willpower, Roy F. Baumeister and John Tierney look at the concept of willpower in a world of indulgence and wonder if someone can indeed increase their willpower. A full review of [...]
Consumer protection and group buying
Posted by admin on June 14, 2011 in Investment Information
Group buying describes the practice of purchasing a good or service at significantly discounted prices if a minimum number of buyers make the purchase within a set period of time. Group buying sites typically send to subscribers a “deal of the day.” Subscribers have the opportunity to purchase the deal by submitting payment information. If [...]
Why do entrepreneurs do so well?
Posted by admin on June 9, 2011 in Investment Information
The book The Millionaire Next Door found that being a business owner increases the probability of financial independence. Since the release of the book, the lazy analysis from that finding is “if you want to be rich, quit your job and be a business owner!” However, I have met as many broke and bankrupt business [...]
“It’s deja vu all over again”- the tech boom (and bust?) part 2
Posted by admin on June 7, 2011 in Investment Information
The group buying site Groupon filed paperwork with the SEC to launch as a publicly traded company under an initial public offering (IPO). Hot on the heels of LinkedIn IPO’s and the much anticipated Facebook IPO, one merely has to substitute “information highway” (I feel so 1994) with “social media” and, to quote Yogi Berra, [...]
Is it time to passively invest in Canadian banks?
Posted by admin on May 31, 2011 in Investment Information
In the last few years, there has been a multitude of references to the “Big Five” Canadian banks as model of a stable banking industry (by market cap, the Big Five are: RBC, TD, BNS, BMO and CIBC). There has also been multiple recommendations to invest in Canadian banks. While in years past, it may [...]
The problem with too much cash
Posted by admin on May 18, 2011 in Investment Information
Investors are caught in a bind. They fear the volatility of the equities market. But money market funds and high-interest bearing accounts are returning very low yields. Caught between the fears of trading losses and the meager return of sitting still, we are all the proverbial deer in the headlights. But has the truck already [...]
If you hate mutual fund managers, why act like one?
Posted by admin on May 17, 2011 in Investment Information
In the 2011 world, you are seen as being late to the game if you report on a story one hour late. Our social media world is about who gets there first- regardless of its accuracy, truth or reliability. This may work fine if you work for a tabloid website but are average investors, bombarded [...]
Does economic growth equal stock market growth?
Posted by admin on April 21, 2011 in Investment Information
According to the CIA World Fact Book, China’s real GDP growth last year was 10.3%. Yet, The Shanghai Composite Index, which tracks the largest stocks trading in China, was down 14% in 2010. How can the economy do so well and the stock market so poorly at the same time? The “experts” believe stock market [...]
Is your accountant doing a good job?
Posted by admin on March 31, 2011 in Investment Information
Among all the major advisors (financial people, lawyers, bankers), accountants get the easiest ride. The answer is pretty simple: they are the only advisors who consistently can give you cash which you are not borrowing in the form of a tax return. But are all accountants created equal? How do you differentiate between a good [...]
