Investing Blog

How To Avoid The Herd

Since March 2009, the market has rebounded well, even breaking new records in recent weeks. Whether you think it’s better to sit on the sidelines or you see greater and greater highs in 2013, it’s time to take a step back and remember how investors beat the market in the long run. Read more

How To Find The Right Financial Advisor

Before Seattle based financial advisor Mark Spangler allegedly defrauded investors, those investors probably felt they had found the right advisor. Spangler has been accused of diverting more than $56 million of his clients’ money into poor private technology companies of which he was either the one-time CEO or chairman. Spangler made these risky investments despite the fact that he told his clients that he was investing in publicly traded companies. Read more

Investors Often Lack Knowledge

This was an excellent quarter for the stock market. Demonstrating its unpredictable short-term nature, the market shrugged off any and all bad news and applauded the good news. Read more

Benjamin Graham’s Checklist

Benjamin Graham was a master of simplicity. His entire investing philosophy centered on a simple, disciplined, approach: buy a bucket of stocks at a steep discount to fair value and then sell when it reaches fair value. Read more

Why Mutual Funds May Damage Your Long-term Portfolio Performance

If you’re not careful, mutual funds can damage your long-term portfolio return. Buy the wrong funds, or actively switch your funds too often, and your retirement can become much smaller than you anticipate. Paying too much for mutual funds is an issue that can plague any investor, but investors that use brokers or financial advisors need to be especially careful. In a recent article, I highlighted some problematic incentives that arise from brokers and advisors that make money from commissions. Read more

Hedge Against The Federal Sequester

Clients are now holding a moderate 20% cash hedge position ahead of the federal sequester next week. I believe it is very possible that Congress will not take action next week to avoid the sequester Read more

Atmel Corporation

This post is part of a continuing series on this blog that gives you a sneak peak into stocks Liberty Hill Investing has recently bought for clients. In the Recent Buys series, you’ll find companies I’m adding to client portfolios and why I like the current valuation. My screens are generally focused on value stocks with manageable debt to equity ratios, good price to free cash flow ratios, cash on hand, and return on equity. Today’s stock, Atmel Corporation (ATML), offers good long term free cash flow growth and deep value. Read more

How To Use Price/Earnings When Assessing a Stock

Recently, I was asked about what role the price/earnings ratio (P/E) plays in my stock selection. It’s an excellent question, because many investors, both professional and amateur, rely heavily on P/E when determining value. I, however, use P/E only as a starting point Read more

Broker-Dealers vs. Fee-Only Investment Advisors

The highly regarded investment firm Edward Jones suffered a hit to its reputation back in 2004, when it was challenged by the SEC for a failure to disclose important conflicts of interest. Issues surrounding conflicts of interest still trouble the company, and other broker-dealers in the industry. This post will explore why Edward Jones and other brokers continue to fail to act in the best interest of their clients, and why fee-only advisors are a superior choice for anyone looking for a financial advisor. Read more

Ignore the Fiscal Cliff, Focus on the Debt Ceiling

In 2012, the economy picked up, despite a rancorous election season and anxiety over the looming fiscal cliff. Housing numbers are as strong as they’ve been since the fiscal crisis started, and consumers and businesses are both showing signs that the economic foundation is solid going into 2013 (more on that later in this letter). The market itself is up, although it spent much of 2012 on a roller coaster ride. Small-caps trailed the S&P 500 by about 5% this year, and I attribute that to continued investor anxiety. I expect that small-caps are poised to rebound past the S&P 500, once investor confidence rises. Read more

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