Archive

A Win for Investors

Several months ago Facebook announced a plan to create a new, third class of nonvoting shares, designed to further strengthen Mark Zuckerberg’s voting control.  According to the latest proxy information, he already holds approximately 60% of the voting power in a two class stock structure. A trial for a class action law suit, seeking to […]

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Dow One Million?

Warren Buffett, speaking at an event to mark the 100th anniversary of Forbes magazine, suggested that the Dow Jones Industrial Average (DJIA) would be “over 1 million” in 100 years. One million may look like a big number, and it is, but it only assumes a compound average annual return of approximately 4%.  Considering that […]

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Tulips and Bitcoins

Paul Vigna, in a recent Wall Street Journal article, pointed out that “digital currency fans are partying like its 1999.” Perhaps Mr. Vigna may want to look further back than 1999, to 1637.  That is when, according to Wikipedia, during a period in the Dutch Golden Age, the contract prices for a single tulip bulb […]

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Dual Classes of Stock May Not Be in the Best Interest of Shareholders

Ford Motor Company recently fired its CEO, Mark Fields.  Its decision to do so was based on the stock’s poor price performance and belief that the company was not agile enough in addressing structural changes occurring in the auto industry.  Personally, I have no opinion as to whether Mark Fields was the source of the […]

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Understanding Quarterly Progress

Investors typically look at quarterly and annual reported operating results on a year-over-year basis.  In other words, what was the percentage change compared to the prior year period. It is important to also consider sequential change.  That is, what was the change compared to the previous quarter.  Obviously this is not particularly helpful in looking […]

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Penny Wise Pound Foolish

On Sunday evening, April 9, United Continental caused a passenger to be forcibly removed from a flight between Chicago O’Hare and Louisville, KY. By acting in what appears to have been in full adherence to the appropriate rules, United Continental may have saved some money and transported a flight crew to Louisville in order to […]

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