Featured
- Coke Stock Already Reflects Worst Case Scenario for Tax DisputeJanuary 19, 2021
Coke has taken a hit due to a long-battled tax dispute with the IRS. A recent court decision is saying Coca-cola needs to pay $3.4BN in additional taxes. The tax dispute stems from the way Coke charges royalty-rates internally. Under the IRS’ method, Coke should have earned $9BN more in …
- How is Dollar General Only in the “Fourth Inning”? $DGJanuary 5, 2021
“We have turned the clock back. We’re actually now only in the fourth inning. We see a tremendous runway ahead of us there” CEO Todd Vasos didn’t mince his words. I’ve never invested in Dollar General stock before (to my detriment) because I thought the growth and reinvestment story had …
- IFF Receives Approval for Dupont’s N&B Business: Waiting for the Right Entry Point $IFFJanuary 1, 2021
When I first heard that IFF was buying Dupont’s Nutrition and Biosciences business, I gagged. I had known IFF from my time covering chemicals and knew it as a “secret SAAS business”, if you will. For example, IFF provides scents and fragrances to perfume manufacturers. I like luxury brands, given …
Columns
- $NXEOW Warrant Recap (& Maybe Post-mortem) $UNVRJanuary 15, 2021
It’s been awhile since I’ve discussed the Nexeo warrants, which are now tied to Univar’s stock performance following the acquisition. At one point, I’m pretty confident this blog was the go-to place for information on the merger and its impact on the warrants. Unfortunately, none of that matters now. We …
- What World Changing Things Will Come From This Episode of Irrational Exuberance?January 14, 2021
I think pockets of this market are clearly showing signs of irrational exuberance. The valuations of companies with no revenue, or even products yet, is alarming. I don’t know much about Nikola, but despite a credible short report and the CEO stepping down, they have no product but a $7.6BN …
- Moving to the Suburbs has been a Phenomenon… for DecadesJanuary 8, 2021
I’ve finally had enough of the headlines, anecdotes, “anec-data.” Everyone thinks COVID is driving people crazy and ditching their city for the outskirts. I hear over and over that this is a new trend we need to watch. “New York City is dead”… “I heard my buddy is moving to …
Personal Finance
- Tax loss Harvesting: How to Reap the Most Rewards
Tax loss harvesting is something I tend to think about after a strong year of equity returns. I find myself asking if I should reduce risk in some names or at least re-balance the portfolio. The problem is that this can create significant capital gains. That said, if you are …
October 14, 2019 - What asset allocation performed best over time?
“Past performance is not indicative of future results” you say as you read this post. But it can be a tool for analyzing what asset allocation performed the best. The markets are particularly tough to apply history to, though, because of the wide amount of factors involved. Interest rates, valuations, …
February 18, 2019 - Diversification: What worked in 2018 and comparing that to what worked in 2008
No surprises here, when volatility reared its head throughout 2018, the “safety” classes outperformed risk. That should make intuitive sense, especially when considering the S&P500s 18.7% return in 2017 (and 21.4% when including dividends). But as we all should know, it pays in the longer term to have some diversification. …
January 5, 2019
Real Estate Investing
One benefit of real estate investing is being able to take your initial capital out of the deal and still own the property. My wife and I just did this through a cash out refinance on investment property we’ve owned. It is fairly straightforward, but let me try to explain …
April 26, 2020COVID-19 has already produced some interesting investment opportunities in the stock market. Fortunately or unfortunately, part of investing is being prepared to buy an asset that others NEED to sell. Perhaps the cash on cash return of real estate will improve… This happens in the stock market all the time, …
April 10, 2020The mortgage market is in turmoil right now. While congress passed the “CARES Act” to provide relief to families impacted by COVID-19, there were clearly some unintended consequences. First Mortgage Market Issue: Possible Bankruptcies in the Servicer Space The CARES Act allows homeowners and renters can stay in their homes …
April 5, 2020