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Value investor Bob Olstein: Quarterly earnings estimates by companies should be 'illegal'

Value investor Bob Olstein: Quarterly earnings estimates by companies should be 'illegal'

Finance
Noted value investor Bob Olstein is 100 percent behind the call by Warren Buffett and Jamie Dimon to end quarterly earnings guidance by companies. "They should make it illegal to make specific quarterly earnings estimates. It leads to nothing that is good. They manipulate earnings to reach it. They take their eye off the football," the chairman and chief investment officer at The Olstein Funds said Thursday on "Closing Bell." Buffett, chairman and CEO of Berkshire Hathaway, and Dimon, chairman and CEO of J.P. Morgan Chase, teamed up in a rare joint interview that aired on CNBC earlier in the day to explain their stance. ...
Legendary investor Bill Miller: Market could be headed for a 'melt-up' of 30%

Legendary investor Bill Miller: Market could be headed for a 'melt-up' of 30%

Finance
Worried about higher interest rates putting a dent on the stock market's rip-roaring rally? Fear not, a rise in rates will actually help stocks, according to legendary investor Bill Miller."Those 10-year yields go through 2.6 percent and head towards 3 percent, I think we could have the kind of melt-up we had in 2013, where we had the market go up 30 percent," Miller, the founder of Miller Value Partners, told CNBC's "Closing Bell" on Tuesday. "If we can get the 10-year towards that 3 percent level, you'll see the same thing.""In 2013, people finally began to lose money in bonds. They took money out of bond funds and put it into equity funds," Miller said.Miller is considered one of the best investors ever, after beating the market for 15 years in a row while working at Legg Mason. Stocks...
ICO stands for Investor Caution Obligatory

ICO stands for Investor Caution Obligatory

Finance
HERE is the deal. You can buy an entry in a computer ledger issued by a startup company on the basis of an unregulated prospectus. It is called an “initial coin offering” or ICO. But though the ledger entry is called a coin, you cannot spend it in any shop. And whereas the use of the term ICO makes it sound like an IPO (initial public offering), the process whereby a firm lists on a stockmarket, coin ownership does not necessarily get you equity in the company concerned.This sounds like the kind of bargain that would appeal only to people who reply to e-mails from Nigerian princes offering to transfer millions to their accounts. But ICOs may well be the most popular investment craze since the dotcom boom of 1999-2000; even Paris Hilton, a celebrity heiress, has jumped on the bandwagon. The
Goldman is going to explain its trading strategy after investor pressure

Goldman is going to explain its trading strategy after investor pressure

Finance
Goldman Sachs Group will detail plans to turn around performance at its core bond-trading unit next month after unusual pressure from large investors frustrated by vague explanations of its troubles, people familiar with the matter told Reuters.The move is a break from tradition at Wall Street's pre-eminent bank, which usually gives its investors little information about how it makes money.That was the case last month, when Goldman reported a stunning 40-percent decline in bond-trading revenue, much worse than rivals like Morgan Stanley and JPMorgan Chase & Co.Goldman Chief Financial Officer Marty Chavez said Goldman had trouble "navigating" the markets during a conference call to discuss second-quarter results on July 18, but did not offer specifics.That, and his vagueness over the ca...
Why I’m a lazy, passive-aggressive, cheap investor

Why I’m a lazy, passive-aggressive, cheap investor

Finance
I normally never use the term "lazy" to describe myself, but in this instance I'll make an exception.You may think, to get anywhere with your money, you have to roll up your sleeves, consult with the experts and take on a mountain of work. Indeed, much of the financial industry may try to convince you that with complexity come better returns.But in my experience, complexity is not only expensive, it can be inefficient and comes with no guarantees. Putting together a perfect set-it-and-forget-it portfolio has served me well over the last two decades, and here's why.My sharpest tool as a long-term investor is what is commonly known as a lazy portfolio, and it's a great way for regular people to efficiently grow their assets, easily diversify away unsystematic risk and pay the lowest fees to ...