Berkshire Hathaway Quietly Moves Up

If you wish to own a stock that you can buy without any issue, I would recommend Berkshire Hathaway (BRK-B and BRK-A).  This is one stock that has continued to outperform its peers year after year.  Even at times where it had its dips, it continued to move up and increase value to its shareholders.  Warren Buffett and his team has continued to add value to the company.  A couple big moves that they had in the recent years were the purchase of Burlington Railroad and Hertz.  During the recession, he partnered with Goldman Sachs (GS) and Bank of America (BAC) to get some nice loan terms and options to purchase their stocks.  Overall, he has done an excellent job and I only see that trend continuing in the future.

Warren Buffett recently purchased more IBM.  He continues to be bullish in this technology stock which is interesting since before IBM he considered technology to be a taboo in his investment portfolio.  It will be interesting to see how it turns out but if you look at IBM’s stock trend it just moves up like Berkshire Hathaway.

Ford is Ready to Rumble

That’s right.  Cheap oil, low valuation, and nice dividend means Ford (F) is a great stock to own.  They have already released their F-150 aluminum and are getting great reviews.  Ford also has a bunch of other models coming out.  The best part is oil is cheap so its a great time for consumers to get new cars especially trucks.  With a 3.70% dividend, even the patient investor has time to just hold out until the stock moves up.

Technically, the stock has already broken resistance and it is in bullish territory.  If you haven’t look at Ford already, I recommend doing some due diligence and adding it to your portfolio.  I see much more growth in it versus its rival General Motors.

Oil Stocks and Plan B

There has been a lot of discussion over the investing of oil stocks.  I, for one, believe there is great potential in oil stocks but there is a ongoing concern that oil prices will be low for a long time and this means that most investors don’t want to touch oil stocks.  Of course, most of these comments are coming from stock traders.  They want to get in and out when the market news comes out.  Personally, I don’t have the time nor the discipline to keep up with all the market hoopla (trends), up and down action of the day, and look at these stocks minute after minute.

As an investor, there is great potential in oil stocks.  First, you get a nice dividend.  BP is giving a dividend at 5.80% and COP is giving a dividend of 4.30%.  This means while you wait for the stock to appreciate you collect a nice premium.  I don’t know about you but oil is necessary and it will be necessary for a long time.  These two companies also follow a strategy called Plan B.  This means that they are strategizing their portfolio in the belief that oil prices will not rise soon.  Of course, this is a more conservative strategy than the other oil companies but its safer, less risky, and you are still collecting a nice dividend.

I recommend taking a look at both BP and COP as I own them and I will hold them for the long term!

Reaping the Benefits of Stock Investing

With the christmas holiday coming and the holiday season, I thought I would write a lighter side from the normal stock investing that we do. I would like to write about the benefits we get as stock investors. We can use the money for experiences that would usually be a premium to that we can enjoy. Today I am enjoying a very nice first class flight form Japan Airlines. I have had an excellent experience so far and I’d like to write about it in more detail.

From the moment I went to check-in the flight, the experience has been impeccable. The check-in had no line at all for any of the classes (first, business, or coach) and they do have a separate line for each. LAX was very light during the weekday and I was able to pass through security quick. I had an okay experience at the oneWorld lounge. The breakfast was missing bacon and another protein but I was able to enjoy some eggs. They also had a nice barista complimentary to the lounge and I was able to enjoy a nice cappucino while waiting for my flight.

At the time of my flight, I was able to breeze through check-in as the Boeing 777-300 only has 8 first class seats. There was no line and there was even a lady waiting at the terminal for first class passengers to make their experience better. Once I got on board, I was treated to the first class experience and I even enjoyed a nice champagne as they waited for the other passengers to board.

The first class suite seats are a first for me. It is great to have your own private suite complete with outlets, bigger TVs for digital entertainment, noise cancelling headphones, and full reclining flat bed seats. The only thing lacking is a separate door to make the experience fully private but I cannot really say a negative as this would be my first ‘first-class’ experience on the plane.

Once the flight was in the air, they started the meal. I got the japanese style meal and it was delicious.It was an eight-course meal where each course was served with a custom and detailed plating and high quality ingredients. I don’t want to go into very detailed meals of each course but I can say that the seafood was delicious. If you want a western style experience, they also have rib eye steak but it is corn-fed so I wouldn’t say you get as much value.

The stewardesses were very generous and allowed me to sample many different red wines, white wines, green tea, and coffee. I particularly enjoyed their premium sake that the stewardess said I would enjoy and she was correct! It had a nice subtle dryness and a nice light sweetness that made it very delicious and enjoyable with the meal.

Their lobster course was excellent. They made it really easy to take the lobster off the shell and surprisngly really delicious and still fresh while being served on the plane.

They also had a very delicious “Sashimi” style shrimp and flounder plate that was the best part of the course. Very fresh still and very delicious.

I wasn’t too fond of the rice with crabmeat but most people would enjoy it still.

The miso soup was different than the normal powder miso you get at the restaurant. It had a radish and tofu and it tasted really homemade. It wasn’t too salty either.

If you enjoy tea, you will particularly like Japan Airlines for their green tea and black tea. Both are very high quality and you can still see the powder from the teas as you drink. I had a couple of each and they even gave me more when I finished the tea. Their coffee was a bit bitter and they probably could use a higher quality blend with a better creamer.

The coffee was better used with their delicious ice cream. The ice cream was very cold and still frozen so it made perfect sense to make it a abogada by smothering the ice cream in warm coffee.

Once the meal is completed, they get everyone ready to sleep even though it is considered 3PM in Pacific time. It is late in the evening in Japan and it is a good start to getting rid of Jet Lag. They have a nice bedding setup for you. They will put on a nice mattress padding with either soft or hard depending on your preference. They also provide you a comforter and a sleeping pillow to sleep. This is a different pillow than the back pillow that you get when you board.

You are also given comfy pajamas to enjoy your flight. They will take your clothes and store it in a locker (I presume). Their bathroom is complete with toothbrushes, mouthwash, and some lotions for you to use. They also give you a nice travel bag complete with sleepy goods, dental goods, and lotion.

For those that don’t want to sleep, you can enjoy the in-flight entertainment with the latest movies. They also have music and games. All entertainment is scripted in japanese and I needed the help of the flight attendant to choose my movies but they do have some recent english movies that make it easy to watch.

Overall, you will have a great time boarding with Japan Airlines. I would like to continue venturing other first class services but I’ll have to do well with investments before venturing in too many. In the meantime, you must continue to invest for the long-term in strong companies. As for the companies that I mentioned before, you will continue to do well with holding AIG for long-term. I recommend it and I believe it will be a nice winner for many years. For a more riskier play, I suggest Ford (F) as the stock is still low and there is a lot of potential for it to move bullishly for 2015 and 2016. They have a great line-up of new cars and a new Ford F-150 that is all aluminum that should do well going forward.

Invest in Strong Companies and Do Will

As investors, we always want to find something that is under the radar.  We want something that hasn’t been priced high yet.  We want to be able to get the stock before it takes off.  Remember when you are doing this you are competing with investment firms and professional stock traders that have a limitless amount of tools at their exposure and they do this full time.  If you wish to make consistent returns, it is best to stick with strong names that will do well for the long-term.

One high-flyer that has continued to go up is Micron (MU).  This stock has continued to run up well and even with the past dip it has already started moving up again.  It is worth taking a look at.  I couple other good names to look at include IBM and Home Depot (HD).

AIG is a Great Long-Term Investment

As you noticed in my blog, I often do buy and sell out of the same stock within the same year.  I often try to sell a year ahead to reduce the tax capital gains.  If you are looking at a great stock to do play long-term and that means you wish to invest, I recommend looking at AIG.  It did do poorly in the recession and they went to the brink of bankruptcy before being rescued by the US Government.

However, they are now poised in a path to grow and profit.  The stock chart shows this growth and it will continue to do great in many years to come.  Another great way to play is to use the AIG Warrants.  It’s a leveraged bet that will also do well.

I own both AIG Warrants and AIG.

Sprint Update

It has been a while since I posted in my blog.  FYI, I sold Sprint in June while it was in the mid-9s.  I don’t want anyone to take an investment and continue to hold thinking that I still own it.  I still think it is a great stock but there is a lot of competition.  The Softbank Mr. Son will do everything in his power to make Sprint a strong player in the US Market.  I think he will succeed but it will take too much time and there are so many great investments out there.


Ocwen is a Deep Value Play

On Friday, Ocwen Financial (OCN) took a nose-dive of 8.93% as they lost the loan deal with Wells Fargo.  They have dropped from a high of $60 to reaching $20 in one years time.  I would not have expected this company to continue to drop so much but with a price of $20 there is much pessimism priced into the stock.  They are going to do buybacks and they also have Seth Klarman who has bought large purchases in the third quarter.  Leon Cooperman sold out of his position though.

What are the risk?

They had a huge miss on earnings the past quarter and they also have substantial misses on the past 3 earning releases.  The company has fallen dramatically since the second quarter earnings.  The management repurchased 5.3 million shares at an average price of $29.92.  This is 50% higher than the current price of the stock. They also purchased 2 million additional stock at $23.63.  Management thinks their stock is too cheap and I wouldn’t doubt that they repurchase more in the future.

Why should I buy?

William Erbey is a really good CEO.  There is a lot of negative news priced into the stock right now.  If the company settles with regulations, there is a good chance that the price will rise significantly.  Also, if they continue to go the course, their stock should just go up because its priced as if its going to go to worse climate.

This is actually pretty risky but if there is a bottoming it might be a good play to make!  I would recommend watching for now!

Investing in Drug Companies

Investing in pharmaceutical companies are always risky.   Most of these companies are not making money but if they have one drug that works well, they can easily be bought out or make all the royalties back from their research and development.  It’s better if these companies already have a partnership with one of the behemoth drug companies that can help give them money and sponsor their drugs.

The company I’m talking about is Theravance (THRX).  Seth Klarman owns a majority of this company in his portfolio.  His basis is much higher than the current price of the stock.  It has hit weakness the past couple of quarters but there has been really good guidance going forward and growth should happen in 2015 and 2016.  GlaxoSmithKline recently purchased 832,456 shares of Theravance costing them a total of $12,786,524.16.  With such a large purchase, they are really betting on their drugs and I assume they eventually would like to buy them out.

This is a risky place but if THRX does well, it could be a great benefit to the stockholders.

Ford F-150 means Big Stock Move Up!

Ford has started production on their new F-150 aluminum truck.  This is their best seller vehicle and this is poised to bring their stock back up.  There has been a lot of bearish pricing in the stock this year since they have not hit their numbers and their guidance has been down.  The reason is they are investing in the future.  They have spend lots of money on their new models and they are willing to sacrifice short-term gains for future growth.  This actually worked to their advantage.  Not only has gas price decreased significantly since the start of the year but customers still have aging cars that need to be salvaged.

They are in great position for 2015 and their stock is in a great position to be purchased!  Even if the stock doesn’t move at all, you still get a nice 3.5% dividend to be patient.  Try doing that in a money market account or CD.  You are paid to be patient.

Remember they still have a great line of vehicles coming out for 2015 including the Ford Mustang, C-MAX, Escort, and more.  I recommend getting in while its low.

Disclosure: I own F for the long-term potential gain.