Archive

There Is No Such Thing As One Bad Quarter

Early in my career, a very successful investor shared this bit of advice with me.  His logic follows: Companies do not like to report poor results or results that fall short of Wall Street estimates. Financial statements, both income and balance sheets, include a significant number of estimates.  For example, balance sheets show accounts receivable […]

Read More

Perception Becomes Reality?

Everyone is probably familiar with the motivational efforts of sports teams’ managers and coaches and legendary half time speeches.  Experience suggests that a team that expects to win, is more likely to be successful, and a team that expects to lose, probably will. Investors might want to consider if the same may apply to business, […]

Read More

The Importance of Expectations

Market observers are well aware of the immediate price reaction when a company’s quarterly earnings beat expectations, or fall short. Perhaps not quite as widely understood, is the significance of broader economic estimates.  Over the last several years, economists have consistently underestimated economic strength, both in the U.S. and internationally.  As a result, we have […]

Read More

New to You

We now live in age when news items are promulgated universally with amazing speed.  This can create an interesting dilemma for investors.  Any time you become aware of new information that could influence an investment decision, it is important to understand how new is new.  New to you, that is, you just became aware of […]

Read More

Hey! Amazon! How About Michigan?

It is well known that Amazon is seeking a location for a new major investment.  Not so well known is the progress that Michigan has made since the Great Recession ended in 2009.  The recently released 2017 Michigan Economic Competiveness Study confirms that Michigan is making great progress at the state level. Consider: Michigan’s economy […]

Read More

Cash is King?

The concept of “cash is king” has often been associated with investment strategies.  It now appears that the importance of cash as an incentive is becoming a larger factor in attracting business investment. For example, at first glance, it would seem that Wisconsin’s successful bid for Foxconn’s first major U.S. manufacturing facility was smaller than […]

Read More