All the good will and genius investing has taken a turn for the worst. I've read a lot of business news over the past couple of years and the overall theme has been a negative sentiment on the overall market. In spite of this, the stock market has shot up as have the positions in the IWC Stock Portfolio. Well, there seems to have been a bit of a pull back over the past month. The IWC Stock Portfolio was not immune to this downturn and has pulled back a bit from the impressive gains of the first half of 2014. Due to the downward trend there was not as much trading during the 3rd quarter.Read More
It has been a wild ride but all good things come to an end. The final report looking at dividend paying companies ends with consumer industry. Consumer companies typically sell goods to people and deal directly with customers. The largest company in the consumer segment is Proctor & Gamble. Other companies the general public are aware of include Coca Cola ,Pepsi, Nike, Ford, General Motors and Tesla. There are many dividend paying companies but a lot of stocks are richly valued in this segment so finding value and dividend yield was hard to come by. A total of three companies made the initial screening process. For the last time, here are the screening metrics used to narrow down the hundreds of companies into the top three choices.Read More
The services sector has some big names to sift through. Wal-Mart is the largest corporation in this study with a current market cap of $247 Billion. Other large corporations that most people know include Disney, Amazon, Comcast and McDonald's. There are also some companies that are incredibly important and valuable that you don't think about until you use them. Trains and railways are incredible valuable for not just transportation of people but goods all around the world. Airlines were another investing strategy that if jumped in 1-2 years ago would have almost doubled your money. So besides the obvious 3-4 companies, there is more to this sector than initially thought.Read More
The sector that may get the most action in the next couple of decades may be healthcare. Baby boomers are growing older and retiring in waves. The cost of healthcare seems to be constantly increasing and people are living longer lives which could mean healthcare companies have some opportunities coming up. Out of all the sectors though, the performance of healthcare companies was the hardest to compare between the different sectors. Honestly, the healthcare sector and biotechnology companies in general are out of the realm of my expertise. This gives me a disadvantage with respect to investing in healthcare companies but the IWC Stock Portfolio will give it a shot. The screening and evaluation process is focusing only of dividend performance and business growth. At this stage of the process, the operations are not looked at until part two when we analyze the company performance on a case by case basis.Read More
Qihoo 360 Technology Ltd. (NYSE:QIHU) is a Chinese internet company that specializes in the internet security market, gaming and search. The claim to fame is internet security but have made the shift to gaming and internet search. If you have read anything I have written over the past few months or follow the IWC Stock Portfolio, you will know that two companies I'm extremely bullish on are Qihoo 360 and Baidu (NASDAQ:BIDU). The reason being the developed nations have an internet usage rate of between 75-80% of the population. China has an internet adoption percentage in the 40% range. With a huge population and low but rapidly growing internet adoption rate, this market should double and therefore large internet companies in China (i.e. Baidu, Tencent, Alibaba, etc.) stand to benefit. In the IWC Stock Portfolio, the two biggest positions are Baidu followed by Qihoo 360.
For information, check out the link below for the full article on SeekingAlpha.Read More
Fossil fuels, carbon dioxide in the atmosphere, and the environment as a whole have all been a concern to the general public. The poster child for poor environmental performance are energy companies and especially oil refinery corporations. Just recently BP was found guilty of "gross negligence" for the oil rig explosion in the Gulf of Mexico in 2010. With renewable energy still a while away from global adoption, oil will still have a place in the general public and therefore companies in these fields will have demand moving forward.
Energy companies are typically cash driving behemoths. Exxon Mobil had been the most valued corporation before Apple took its place. Still some of the biggest companies in the world are in the energy sector and the reasons are pretty obvious. Barriers of entry are quite large and you need a lot of capital invested to succeed. Also, having some exposure to energy seems like a good idea for a well diversified portfolio. The IWC Stock Portfolio has National Oilwell Varco shares. Owning Berkshire Hathaway also exposes the portfolio to some Exxon Mobil shares.Read More
"The market is a very sensitive beast that can turn in an instant on the slightest bad news. Sometimes this creates buying opportunities for the ones who pay attention." - Anonymous
Qualcomm reported third quarter earnings with some really strong results. Due to the strength in the chipset technology segment, Qualcomm saw good increases in revenue and earnings year-over-year. These results resulted in an 11% drop in share price over the next few days. The culprit was the two words every investor dreads: lower guidance. Whenever a company forecasts lowered guidance, people rush to dump the stock without taking into account where the weakness is coming from and if it's a fundamental development or short-term event that will run its course.
So what caused this downward forecast? The lowered guidance came mainly from one source: China. Specifically the under-reporting from licensees in China.Read More
Technology companies are some of the most followed companies in the world. Apple is currently the most valued corporation in the world. Think about that for a second. A company that sells smartphones, tablets and laptops among other things is valued more than Big Oil. Not only that, if you look at companies with the largest market caps in the world, they include companies like Cisco, Microsoft, Google, etc. Before technology companies were synonymous with growth companies and didn't pay dividends. Google still doesn't pay a dividend but now they are more the except to the norm. Microsoft has been paying a dividend for years, Apple recently started paying dividends again, and the list goes on. Therefore, it was not surprise that there would be many companies to chose from when looking for a dividend paying company to invest in.Read More