Archive for January 12th, 2011

The problem with growth stocks …

January 12, 2011

No idea whether the body of research supports the conclusion, but the article caught my attention …

* * * * *

The history of the stock market is not kind to investors who chase growth stocks.

Over the long haul, study after study has shown that so-called growth stocks tend, on average, to fare poorly. For each winning stock, there are many costly losers.

Indeed, some analyses argue that investors have typically done better investing in the beaten-down stocks that everyone hates than they have in the glamorous ones everyone loves.

That’s because unloved stocks tend to be so cheap, and expectations so low, that positive surprises can come quite easily.

With go-go glamour stocks, the reverse is true. Even a single disappointment can get punished severely.

WSJ, Is This the Peak for Netflix?, Dec. 24, 2010
http://online.wsj.com/article/SB10001424052748703548604576037920087686958.html?mod=WSJ_hp_mostpop_read

Want to protest big government? … Then give to charities.

January 12, 2011

Punch line: Charitable gifts are a cheerful protest vote against the growing state.

Translation: since charitable donations are tax deductible, folks can divert money from the Fed coffers to causes of their choosing.

It’s a win-win-win.  Charities get money to operate, the Feds get less money to waste, and the contributors can feel that they did  good in two ways – by supporting worthwhile causes and constraining our free-spending Congress.

Explains why Buffett pledges his dough to Gates’ Foundation and why, generally, conservatives give way more to charity than liberals.

From the WSJ …

Your intuition might tell you that people who favor government redistribution of wealth care most about the less fortunate and would give more to charity.

But the data tell a different story.

A large, nonpartisan survey asked people about both redistributive beliefs and charitable giving. It found that those who were against higher levels of government redistribution of wealth privately gave four times as much money, on average, as people who were in favor of redistribution. This is not all church-related giving; they also gave about 3.5 times as much to nonreligious causes. Anti-redistributionists gave more even after correcting for differences in income, age, religion and education.

Obviously, not all charity has ideological connotations — nor should it.

But for many, especially at this time of year, giving is a cheerful, productive protest vote against the growing state.

WSJ, Tea Partiers and the Spirit of Giving, Dec. 24, 2010
 
http://online.wsj.com/article/SB10001424052748704774604576036010174911064.html?mod=WSJ_newsreel_opinion

First, it was the artist formerly known as Prince. Now, it’s …

January 12, 2011

STARBUCKS !

Remember when Prince decided to chuck his name and start going by a symbol ? Many folks thought it a bizarre move.

Apparently Starbucks thought it was a stroke of brilliance.

The Seattle-based coffee giant unveiled a simpler logo (below) that no longer includes the green circle that says “Starbucks coffee.” The iconic mermaid inside the circle is now larger

The company says the move is preparatory to it becoming more of a consumer packaged-goods company.

“Even though we have been and always will be a coffee company and retailer, it’s possible we’ll have other products with our name on it and no coffee in it.”

Already, the move has generated some backlash.

Some folks have accused the company of arrogance for losing their name … others think the mermaid is sexist or sexy – a blade that cuts 2 ways.

[0105starbucks]

http://online.wsj.com/article/SB10001424052748704405704576063940765196656.html?mod=WSJ_hp_MIDDLENexttoWhatsNewsThird