Tag Archives: KO

International Investing in Uncertain Times

Political turmoil in the Middle East and Africa, a natural and nuclear disaster in Japan, rekindling European debt crises: It’s easy to understand why investors may shy away from investing in foreign stocks these days.

They may be making a mistake.

Reluctant Global Investors

“There’s so much fear out there,” says Darleen Gilmore, founder of Austin Wealth Specialists, an investment advisor who likes clients to put a certain percent of their holdings into global markets. “I have to ease them into it.” Continue reading

Jeremy Grantham Talks Asset Allocation, the Fed and Where He’s Advising Clients to Invest

Famous investor and predictor of bubbles, Jeremy Grantham finds a lot to worry about these days. For starters he’s no fan of the Federal Reserve’s ongoing behavior. Also, he’s pretty sure “we’re running out of everything” when it comes to commodities. And Grantham thinks the S&P 500, currently trading at 1178 is more properly valued at 900. His advice to the clients of his firm, Grantham Mayo Van Otterloo (GMO), is predictably circumspect: pile up cash so you can buy when the current, growing US equities bubble bursts, overweight great franchise companies like Coca-Cola (KO) and Johnson & Johnson (JNJ), modestly overweight emerging markets and “underweight everything else.” Oh, and one more thing: “patience.”

If he wasn’t so charming to listen to, Grantham would really be depressing. Though he thinks the economy will “muddle through” that’s about as positive as he got in the course of a very good video interview (video below) with CNBC’s Maria Bartiromo. Continue reading

Arguing for Cash Flow, Stock Picking

Warren Buffett has traditionally been a fan of high free cash flow. So is Eduard Hamamjian.

After a recent post about the debated idea of trying to time the market, I had a conversation with Hamamjian, who runs an investment advisory firm called GeaSphere.

Hamamjian argued for market timing — but not in isolation. When combined with portfolio diversification and smart stock picking,  he says it is the best way to get market-beating numbers.

Smart stock picking is no easy order, but his criteria are not that complicated. Continue reading