There is one ball player out there who has cracked the nut of
investing -- a guy who grasps the underlying complexities of the
financial world with astonishing ease. Even though I've never heard him
utter even one market catch phrase or a single financial buzzword, it's
clear that this guy just gets it.
After a financial meltdown that left the global financial system
reeling, executives in the banking sector should have taken a page out
of the Talking Heads' playbook, and asked themselves questions like
"How did I get here?" If they had, perhaps I wouldn't have that darn
"same as it ever was" refrain running constantly through my head today.
As fundamentals-focused long-term investors, Fools never base an
investment decision on the daily gyrations of the market. But the
market's daily price movements can be useful when looking for new stock
ideas for further research, or to keep tabs on watch-list stocks.
Three weeks ago, it was reported that Goldman Sachs (NYSE: GS) was on track to pay
its employees the biggest bonuses ever, corresponding with what was
shaping up to be the best quarter in the investment bank's history.
Untruths come in several flavors (in order of heinousness): lies, damned lies, and statistics.
And then there are survey results from a source with a self-serving axe
to grind. You can put any spin you want on such reports, as long as
it's done with a straight face.
Based on the aggregated intelligence of 135,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, oil and natural gas provider Delta Petroleum (Nasdaq: DPTR) has earned a respected four-star ranking.
We all want to find solid companies, and we want to buy them at
attractive prices. But that's easier said than done -- some of the best
methods of estimating a company's true value are rather complicated.
That's why many people love the simplicity of the price-to-earnings
(P/E) ratio, or its cousin, the price-to-sales (P/S) ratio. The latter
is especially handy when a company has no earnings.
Based on the aggregated intelligence of 135,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, swimming-pool-equipment supplier Pool Corporation (Nasdaq: POOL) has received a distressing two-star ranking.
Amaflix? Netazon? The Microhoo-esque amalgamations don't quite fit, and neither do yesterday's rumors that Amazon.com (Nasdaq: AMZN) might want to acquire Netflix (Nasdaq: NFLX).
Actions speak louder than words, as the old saying goes. So why does
the media focus so much attention on what Wall Street says about
companies, instead of what it does with them?