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 … Continued

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, … Continued

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 … Continued

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 … Continued