John Reese, editor of Validea, analyzes the investment strategies of a "legendary" investor. For his latest Guru Spotlight, he turns to the father of value investing, Benjamin Graham.
Today, many investors look to Warren Buffett for advice about the stock market and economy. But before he became one of the world's richest men and greatest investors, there was someone whose investment advice Buffett himself cherished: Ben Graham.
And Buffett was far from alone. Known as "The Father of Value Investing," Graham inspired a number of famous "sons"��ario Gabelli, John Neff, and John Templeton��re Graham disciples who went on to their own stock market greatness.
Graham built his reputation��nd fortune��y using an extremely conservative, low-risk approach to investing. To him, preserving one's original capital was every bit as important as netting big gains.
In terms of specifics, Graham's "Defensive Investor" approach limited risk in a number of ways, and my Graham-based model lays out several of those methods.
10 Best Clean Energy Stocks For 2015: United States Brent Oil Fund LP (BNO)
United States Brent Oil Fund, LP (USBO) is a commodity pool. USBO is focused on issuing units that may be purchased and sold on the NYSE Arca, Inc. The investment objective of USBO is for the daily changes in percentage terms of its units��per unit net asset value (NAV) to reflect the daily changes in percentage terms of the spot price of Brent crude oil, as measured by the daily changes in the price of the futures contract for Brent crude oil traded on the ICE Futures Exchange (the ICE Futures).
The investment portfolio of USBO will consist primarily of investments in futures contracts for crude oil, heating oil, gasoline, natural gas and other petroleum-based fuels that are traded on the ICE Futures, New York Mercantile Exchange (the NYMEX) or other United States and foreign exchanges (collectively, Futures Contracts). USBO may also take positions in other crude oil-related investments, such as cash-settled options on Futures Contracts, forward contracts for oil, cleared swap contracts and non-exchange traded (over-the-counter) transactions that are based on the price of crude oil, other petroleum-based fuels, Futures Contracts and indices based on the foregoing (collectively, Other Crude Oil-Related Investments).
Advisors' Opinion:- [By Dan Caplinger]
How to invest
If those trends persist, then it could eventually solve the problem that United States Oil Fund has had in underperforming the spot price of crude. Given Brent's stronger backwardation trend, United States Brent Oil Fund (NYSEMKT: BNO ) might be the better oil ETF to choose. - [By Dr. Kent Moors]
As I have noted before, investors can play this spread by using two exchange-traded funds (ETFs) that are already part of the Energy AdvantagePortfolio: PowerShares DB Energy Fund (NYSE Arca: DBE) and the United States Brent Oil Fund (NYSE Arca: BNO).
- [By Paul Ausick]
The United States Brent Oil ETF (NYSEMKT: BNO) is up less than 0.1%, at $44.38 in a 52-week range of $36.88 to $45.05. The annual high was also set today.
5 Best Defensive Stocks For 2014: Central Securities Corp (CET)
Central Securities Corporation is a non-diversified, closed-end management investment company. The Company�� primary investment objective is growth of capital. Central Securities Corporation invests primarily in common stocks, but it may invest in bonds, convertible bonds, preferred stocks, convertible preferred stocks, warrants, options real estate, or short-term obligations of governments, banks and corporations.
The Company, from time to time, invests in securities, the resale of which is restricted. Central Securities Corporation invests in various sectors, including insurance, Semiconductor, Technology Hardware and Equipment, Diversified Industrial, Energy, Software and Services, Banking and Finance and other.
Advisors' Opinion:- [By Joe Eqcome]
Actionable Items:
Highest Positive Spread: ING Emerging Markets High Dividend Equity Fund (IHD)Focus Stock: Central Securities Corporation (CET)Last Week's Focus Stock: Central Securities CorporationJunk Bonds Debacle: The $85 billion monthly bond-purchase program has produced a selloff for "junk" bonds. The U.S. Treasurys jumped 0.18% to 4.39% on Wednesday. The benchmark 10-Year Treasury note has risen 0.5% in the past month.
5 Best Defensive Stocks For 2014: Tahoe Resources Inc (TAHO)
Tahoe Resources Inc. operates Escobal mine. The Company owns 100 % interest in Escobal project located in southeastern Guatemalan, approximately 70 kilometer from Guatemala City, near the municipality of San Rafael las Flores. Escobal mine contains silver, gold, lead, and zinc mineralization. In addition, the Company is engaged in the exploration and a review of prospective mineral acquisitions for mining of precious metal. Advisors' Opinion:- [By Luke Jacobi]
Tahoe Resources’ (NYSE: TAHO) Escobal mine is a silver deposit in southeast Guatemala, from which all of the company’s production occurs. Fortunately for Tahoe, the mine is in the southeast of the country, while the quake was most felt on the other side of Guatemala. The company told Benzinga its operations were not at all affected by the earthquake and that just a few tremors were felt.
5 Best Defensive Stocks For 2014: Cliffs Natural Resources Inc (CLV)
Cliffs Natural Resources Inc. is an international mining and natural resources company. The Company is an iron ore producer and a producer of metallurgical coal. The Company�� operations are organized according to product category and geographic location: U.S. Iron Ore, Eastern Canadian Iron Ore, North American Coal, Asia Pacific Iron Ore, Asia Pacific Coal, Latin American Iron Ore, Ferroalloys, and its Global Exploration Group. The Company operates in four segments: U.S. Iron Ore, Eastern Canadian Iron Ore, North American Coal and Asia Pacific Iron Ore. In the United States, it operates five iron ore mines in Michigan and Minnesota, five metallurgical coal mines located in West Virginia and Alabama and one thermal coal mine located in West Virginia. It also operates two iron ore mines in Eastern Canada that primarily provide iron ore to the seaborne market for Asian steel producers. Its Asia Pacific operations include two iron ore mining complexes in Western Australia, serving the Asian iron ore markets with direct-shipping fines and lump ore, and a 45% interest in a coking and thermal coal mine located in Queensland, Australia. In Latin America, it has a 30% interest in Amapa, a Brazilian iron ore project, and in Ontario, Canada, it has a chromite project in the pre-feasibility stage of exploration. On May 12, 2011, the Company completed the acquisition of Consolidated Thompson Iron Mining Limited.
U.S. Iron Ore and Eastern Canadian Iron Ore
The Company is a global iron ore producer, primarily selling production from U.S. Iron Ore to integrated steel companies in the United States and Canada, and production from Eastern Canadian Iron Ore to the seaborne market for Asian steel producers. The Company manages and operates five iron ore mines located in Michigan and Minnesota and two iron ore mines in Eastern Canada. As of December 31, 2011, the United States-based mines and one of the mines in Eastern Canada had an annual rated capacity of 38.5 million gross tons of iron or! e pellet production. The second iron ore mine that the Company manages and operates in Eastern Canada had an annual rated capacity of 8.0 million gross tons of iron ore concentrate as of December 31, 2011. During the year ended December 31, 2011, the Company produced a total of 31.0 million tons of iron ore pellets at U.S. Iron Ore, including 23.7 million tons for its account and 7.3 million tons on behalf of steel company partners of the mines.
At Eastern Canadian Iron Ore, it produced a total of 6.9 million metric tons of iron ore pellets and concentrate during 2011, with concentrate production measured from the date of its acquisition of Consolidated Thompson in 2011. The Company produces various grades of iron ore pellets, including standard, fluxed and high manganese, for use in its customers��blast furnaces as part of the steelmaking process. As of December 31, 2011, it had approximately 1.2 million tons of pellets, respectively, in inventory at lower lakes or customers��facilities. During 2011, the Company sold 24.2 million tons of iron ore pellets, respectively, from its share of the production from the Company�� U.S. Iron Ore mines. Its Eastern Canadian Iron Ore revenues are derived from sales of iron ore pellets and concentrate to the seaborne market for Asian steel producers. The iron ore pellets produced by Eastern Canadian Iron Ore are sold to various customers. During 2011, the Company sold 7.4 million metric tons of iron ore pellets and concentrate, respectively, from its Eastern Canadian Iron Ore mines.
North American Coal
The Company owns and operates five metallurgical coal mines located in West Virginia and Alabama and one thermal coal mine located in West Virginia that had a rated capacity of 9.4 million tons of production annually in 2011. In 2011, the Company sold a total of 4.2 million tons. North American Coal�� metallurgical coal production is sold to global integrated steel and coke producers in Europe, Latin America and North Am! erica, an! d its thermal coal production is sold to energy companies and distributors in North America and Europe.
Asia Pacific Iron Ore
The Company�� Asia Pacific Iron Ore operations are located in Western Australia and include its wholly owned Koolyanobbing complex and its 50% interest in Cockatoo Island. Production in 2011, was 8.9 million metric tons. These two operations supply a total of three direct-shipping export products to Asia via the global seaborne trade market. Koolyanobbing produces a standard lump and fines product. Cockatoo Island produces a single premium fines product. The lump products are directly fed to blast furnaces, while the fines products are used as sinter feed. Koolyanobbing is a collective term for the operating deposits at Koolyanobbing, Mount Jackson and Windarling. There are approximately 60 miles separating the three mining areas. Cockatoo Island is located off the Kimberley coast of Western Australia, approximately 1,200 miles north of Perth Cockatoo Island produces a single high-grade iron ore product known as Cockatoo Island Premium Fines. During 2011, it sold 8.6 million metric tons of iron ore from its Western Australia mines.
The Company competes with ArcelorMittal Mines Canada, U.S. Steel Canada Inc., Alpha Natural Resources, Inc., Patriot Coal Corporation, CONSOL Energy Inc., Arch Coal, Inc., Walter Energy, Inc., Peabody Energy Corp. Anglo, BHP and Fortescue Metals Group Ltd., Rio Tinto plc, Vale, BHP, Teck Resources Limited and Xstrata plc.
Advisors' Opinion:- [By Henry Nyce]
Cliffs Natural Resources (CLV) closed at $18.55 yesterday. At that price CLV offers 10.5% per share. Originally offered at $25.00 per share, CLV can now be purchased well below the offering price. It is designed to pay distributions of 7.00% per annum ($1.75 per annum or $0.4375 per quarter) to be paid quarterly on 2/1, 5/1, 8/1 & 11/1 to holders of record on the immediately preceding 1/15, 4/15, 7/15 & 10/15 respectively.
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