In many asset classes,
investors were fooled.
On an individual stock basis, this may be the case, if
investors are fooled by the faster earnings growth and they keep multiples at the same level or increase them.
«I began telling ExxonMobil management in 2008 that trying to appease climate - activists - dressed - as -
investors was a fool's errand,» Steve Milloy, publisher of the site JunkScience.com and Exxon shareholder, told The Daily Caller News Foundation.
Some investors are fooled by the low payment and what appears to be positive cash flow.
Not exact matches
That
's how entrepreneurs so often manage to
fool themselves — and their
investors, too — into believing they have some sort of recipe for success when, in fact, they don't.
But
is there an alternative, short of going hat - in - hand to angel
investors or venture capitalists or the proverbial three Fs: family, friends, and
fools?
If you've ever wondered whether building an intranet
is worthwhile, then consider the example of Motley
Fool, an online
investor - education company based in Alexandria, Va..
With a small stock market where institutional
investors have
been in short supply since the nationalisation of pension funds in 2008, and few angel
investors or venture capital funds, the traditional source of seed capital
is what
is known as FFF: friends, family and
fools.
Public market
investors are not the
fools many private
investors like to play them out to
be.
From our founding in 1993, The Motley
Fool has
been fighting on the side of the individual
investor.
Three Motley
Fool investors have identified Latin American lending specialist Bladex (NYSE: BLX), tech stalwart Cisco Systems, Inc. (NASDAQ: CSCO), and canned food giant Hormel Foods Corp. (NYSE: HRL) as dividend stocks that
are great buys right now.
April had the highest volume of any month since 1929 with the exception of October, which
fooled some
investors who thought the worst
was behind them.
Mr. Lewis
is the director of the Shareholder Rights Group http://shareholderrightsgroup.com and
was co-author of «
Fooling Investors and
Fooling Themselves: How Aggressive Corporate Accounting and Asset Management Tactics Can Lead to Environmental Accounting Fraud.»
Mr. Tilson has co-authored two books, The Art of Value Investing: How the World's Best
Investors Beat the Market (2013) and More Mortgage Meltdown: 6 Ways to Profit in These Bad Times (2009),
was one of the authors of Poor Charlie's Almanack (2005), the definitive book on Berkshire Hathaway Vice Chairman Charlie Munger, and has written for Forbes, the Financial Times, Kiplinger's, the Motley
Fool andTheStreet.com.
And the greatest
fools are participants in the pension plans managed by the greater
fool institutional
investors.
I
'm with Carl as I too unashamedly ride on the coat tails of giants (Forager, Intelligent
Investor, Motley
Fool) who have better tools at their disposal than I ever will (capital IQ for example) and then just focus on controlling the one thing I have control over — my emotions as Investing
is overwhelmingly a game of psychology.
Johnson & Johnson
is a Motley
Fool Income
Investor recommendation.
And that
's why fellow
Fool Blake Bos recently insisted ExCast
is «of utmost importance for the company to succeed over the long - term, satisfy
investor's expectations, and drive the stock price higher.»
These aren't just random ideas, either: Three Motley
Fool Investors have identified these particular companies as value stocks perfect for retirement.
It
's fine to argue that perhaps
investors are momentum chasers, and with profit margins now about 70 % above historical norms (making stocks seem both «safe» and misleadingly cheap), with stock prices up, and with low returns on cash,
investors not holding stocks will
be the greater
fools that allow
investors who do hold stocks to get out.
However, if you underestimate how much money you need, you won't
be fooling anyone, least of all your
investors.
It
's hard to feel sorry for
investors who know a stock
is being gamed and buy it anyway, but there
are also plenty of people who simply get
fooled.
«The closest real - world analogy to raising money, whether you
are seeking it from venture capitalists, angel
investors, or the three Fs (friends,
fools, and family),
is speed dating.
Ponzi, or pyramid schemes can
be so brilliantly organized and presented that they can
fool the most savvy business
investors.
Fast forward 170 years, and you still have frenzied feedback loops of riches and hype that leave many
investors vulnerable to
being played the
fool.
For
investors, electronic gold
is nothing but modern day
Fools» gold.
When we asked a handful of
investors the same question here at The Motley
Fool, they
were quick to recommend Ligand Pharmaceuticals (NASDAQ: LGND), Finisar (NASDAQ: FNSR), and First Solar (NASDAQ: FSLR).
Come to think of it,
Fool contributor Mary Dalrymple already owns shares of Johnson & Johnson, which
is an Income
Investor recommendation.
But the
investors aren't
fooling themselves: Of the city funds» $ 92 million worth of shares, less than $ 1 million worth get a vote tomorrow.
The anamorphically enhanced 1.78 X 1 image on the DVD may
be standard (or low) definition (this gives low def a new low) and
is sadly clear enough to see all the junk and garbage he
is producing to
fool people with no tastes or
investors who should spend their money elsewhere.
This kind of filmmaking
is painfully rare in America, and it
's something of a minor miracle that McCarthy
was able to
fool investors into funding this movie; happily it
's good enough and, frankly, winning enough that audiences will likely take to it and return the favor.
Fooled by a slick
investor, the three would -
be entrepreneurs launch a faulty plan to kidnap the
investor's adult son and ransom him to regain control of their company.
Good for consumers, but may not
be a great deal for
investors (except those who manage to sell it to a greater
fool).
Well, now
investors are skittish (
fool me once....)
(Mysteriously, the metatitle, the thing that appears at the top of the browser window, hedged: «Why Some
Investors May
Be Fooling Themselves.»)
It
is a good column, worth reading, but it disappointed me for the simple reason that it failed to discuss, even in passing, why many
investors keep
fooling themselves.
I bring this up because the other week Jason Zweig's Intelligent
Investor column in The Wall Street Journal
was headlined «Why Many
Investors Keep
Fooling Themselves.»
And perhaps more important, since no one
is fooled by this ruse, expect whatever benefits this plan delivers to
be short - lived, How comfortable will
investors be with buying stock and bonds of banks if they know the accounts
are rubbish?
The resulting propensity of the stock market to periodically become and remain overvalued
is all the more reason for fundamental
investors to
be careful, avoiding any overpriced investments that will require selling to another, even greater
fool.
And in case you
're interested in what longtime
investors like Tom and David Gardner have learned, you can always take a free 30 - day trial of their Motley
Fool Stock Advisor service — where you'll get in - depth analysis of every stock they've recommended, including their two top stocks for new money now.
My research
is typically performed through a combination of Bloomberg, Yahoo! Finance, Value
Investors» Club, and The Motley
Fool.
I think that the next step
is to gain a sense of how great the likelihood
is that data - informed
investors will
be fooled by the appearance of new returns patterns (or by the reappearance of old returns patterns that they did not anticipate us seeing again).
I
'm with Carl as I too unashamedly ride on the coat tails of giants (Forager, Intelligent
Investor, Motley
Fool) who have better tools at their disposal than I ever will (capital IQ for example) and then just focus on controlling the one thing I have control over — my emotions as Investing
is overwhelmingly a game of psychology.
What
's powerful for
investors about businesses like these
is that you don't have to depend on a «greater
fool» to come along and pay you more money for your shares than they
're really worth.
Overall, here the
investors are happy to pay too much for an asset just because they believe that a greater
fool will
be willing to pay more in future.
Michele Lerner, author of «HOMEBUYING: Tough Times, First Time, Any Time,» has
been writing about personal finance and real estate for more than two decades for a variety of publications and websites including The Washington Post, The Motley
Fool, Investopedia, Insurance.com, HSH.com, SavingsAccount.com, National Real Estate
Investor magazine, The Washington Times, Urban Land magazine, NAREIT's REIT magazine and numerous Realtor associations.
So
investors should
be prepared for a potentially rough ride, says The Motley
Fool»
s Sean Williams.
That
's why smart
investors are beginning to leave this ship of
fools behind by building retirement assets that the government can't touch.
So if you don't want to speculate, if you know that predicting where the price of a stock will
be next week, month or year
is a
fool's errand then you will want to use the value
investor's toolkit.
He understands that The Motley
Fool is all about
investors writing for
investors.