You know it's a crazy market when a company posts 16% quarterly sales growth and a 14% jump in earnings to beat analyst expectations, only to have its stock punished 10% on concerns about growth in its home market. That's exactly what happened yesterday to Oregon-based Nike (NYSE: NKE) when it reported fourth-quarter results.
A diversified portfolio of stocks keeps you from losing everything when a particular company has troubles. If you invest in mutual funds, however, putting more funds in your portfolio doesn't necessarily reduce your overall market risk -- and it can actually increase your exposure to badly performing stocks.
With all the new technologies and discoveries, some drugmakers are undoubtedly going to be left in the dust. SciClone Pharmaceuticals (Nasdaq: SCLN), with its lead drug Zadaxin, might be one such drugmaker.
I don't know about you, but I haven't been able to read a piece of economic news lately without the lyrics of Van Morrison's "Days Like This" getting stuck in my head. It's been a memorable week of economic news, so let's not waste any time. Here's the latest from the economic front.
It's been well documented that Warren Buffett spends most of his time reading, and he attributes the secret of his success to spending most of his day hunkered down in the details of company annual reports, business periodicals, and numerous other books. The same can be said for Charlie Munger, best known as Buffett's right-hand man and co-chairman of Berkshire Hathaway (NYSE: BRK-A)(NYSE: BRK-B).
Barr Pharmaceuticals ' (NYSE: BRL) lawyers are earning their paychecks these days. Earlier in the year, they got a patent on Bayer 's birth control drug, Yasmin, thrown out. Then yesterday, they won a patent challenge covering Boehringer Ingelheim Pharmaceuticals ' Mirapex.
With the market all too often resembling a kamikaze dive these days, it's vital that capital preservation move into the lead spot in investors' hearts. Appreciation is nice -- after all, isn't that why we're in the world of equities? -- but in defensive times like these, keeping one's wad intact becomes of even greater importance.
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