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Become an indomitable investor — with Steven Sears
To build and protect wealth, Investors don’t need another get-rich-quick scheme.
Instead, look at history’s best investors to understand the basics of investing, the players in the market and their different priorities, what works and what doesn’t, and how to manage volatility.
Steven Sears, editor and columnist at Barron’s, has written just such a book. His writing has a lifetime of experience and advice witnessing what works for the best investors…and what doesn’t.
He joins us on Tradestreaming Radio to discuss his new book, The Indomitable Investor.
Listen to the FULL episode
Continue reading “Become an indomitable investor — with Steven Sears”
Barron’s gets Tradestreaming’s evolution of the investing app store (but doesn’t admit to knowing me)
I’m a pretty easy going guy. I never wanted to use this platform to vent or say anything hurtful about anyone or anything. It’s just not my style — Tradestreaming is a resource to help investors, journalists, and industry professionals make better informed decisions.
So, it’s got me a little ticked off that the venerable Barron’s has been taking some of my ideas and repurposing them — without referencing this site. I’m all for using my ideas and expanding on them. I don’t have a monopoly on ideas. Just tell your readers the source of your thoughts. I do it. C’mon.
This week’s Electronic Investor article entitled “Here Come the Third-Party Apps” is a direct reference to my July 6th piece, “Inching towards an investing app store“.
For most of us, this “open” collection of obscure programming utensils and standards—including, for example, a programmers’ tool kit with the memorable name SDK, or files tagged with the extension .XML—will be close to meaningless. But you may already be using some kind of trading app or plug-in that customizes your connection to E*Trade, and there’s no question that, with the proliferation of gadgets and third-party Websites, more such customizing and control programs are on the way. Like other online investment outfits, E*Trade doesn’t want to restrict its customers’ interface and functionality options to its in-house offerings.
The theme of brokerage platforms morphing into exchanges where 3rd party application developers can reach investors has been a common there here and on my other blog, New Rules of Investing.
Starting in July 2008 (on New Rules of Investing) and continuing a year later (with E*Trade further blurs the line between full-service and DIY investing), I’ve been writing about this trend– no one else really has. I’ve even included a section on it in the last chapter, Future of Finance, in my new book, Tradestream your Way to Profits.
Again, I have no problem riffing off my ideas. That’s why I write: to engender some thinking and discussion. Just link back. Listening, Barron’s?
Resources about stock buybacks
Stock buybacks, whether you like them or loathe them, are a reality and when companies are sitting on so much cash (like they are now – almost $1 trillion!), buybacks are certainly one option for companies looking to deploy their cash hordes.
Barron’s recently reviewed a few online resources to help investors stay on top of macro and company-specific trends. You should read the whole article (sub. required).
Here are a couple of their ideas and some of my own thrown in to boot…
Stock buyback resources
- S&P Indices Market Attributes Series — I’m not exactly sure of what that means but this page posts proprietary S&P reports into buybacks. Good overview on their reports (like this one (.pdf))
- The Online Investor: OLI does a good job of reporting all the buybacks in the market on a per-company basis.
- StreetInsider: Ongoing free feed of stock repurchases at numerous U.S. traded companies.
- Seeking Alpha transcript search: Seeking Alpha publishes thousands of free conference call transcripts. Search for terms like “stock buybacks” or “share repurchases” and get a list of which companies are talking about them and what they’re saying.
Academic studies of share buybacks
- The Evolving Relation between Earnings, Dividends, and Stock Repurchases: Interesting look into how earnings are paid out in both dividends and repurchases. Posits that stock repurchases have taken over dividends as way to pay out investors in a more conservative environment.
- Stock Repurchases as an Earnings Management Device: This study finds evidence that a disproportionately large number of firms have EPS increasing repurchases when they would have marginally missed analyst forecasts without the repurchase, and a disproportionately small number of firms have EPS decreasing repurchases when they are close to analyst forecasts before the repurchase.
- The Timing of Stock Repurchases: Contrary to mainstream thinking that repurchases are essentially timed by management to reveal insiders’ views on valuation, this study sees timing of stock buybacks as related to business cycles.
- Stock market anomalies: What can we learn from repurchases and insider trading?: This paper finds a connection between insider information (expectations about future performance) and timing of stock repurchases.
Premium Newsletters using Share Repurchase Strategies
Funds using buyback strategies
- PowerShares Buyback Achievers Portfolio ETF (PKW)
Read the whole Barron’s article here (sub req’d).
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