Warren Buffett’s Annual Letter Enthusiastic

Feb 27, 2011
J. Webster
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Buffet's positive view on the American economy could boost market:
"Money will always flow toward opportunity, and there is an abundance of that in America," said Buffett, who has run Omaha, Nebraska-based Berkshire Hathaway since 1965 and is now one of the world's richest men. "The prophets of doom have overlooked the all-important factor that is certain: Human potential is far from exhausted, and the American system for unleashing that potential ... remains alive and effective." He also forecast a recovery in the housing market "within a year or so" and that "America's best days lie ahead." Given that Buffett owns the entirety

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50 Cent Pimping H&H Imports

Feb 27, 2011
J. Webster
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I'm sure everyone has heard by now about rapper 50 cent and his Tweeting about a stock he owns. The company is H&H Imports and sells 50 Cents' Sleek By 50 headphones. The stock symbol is TVG, 50 cent owns 30 million shares of the penny stock. This is what he tweeted:
TVG's stock went from 5 cents to 10 in one day. You can double your money right now. Just get what you can afford.
The trouble is, that the company is in debt and could go under: The company lost $1.3 million last quarter and

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Jim Cramer Talks Into Erin Burnett’s Chest

Feb 27, 2011
J. Webster
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Everyone knows Jim Cramer has a tendency to get a bit excited from time to time, don't know whether it's too much caffeine or what, but in the video below Cramer runs over to talk to Erin Burnett and talks right into her chest. Take a look.

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Greed is Good?

Feb 26, 2011
J. Webster
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However inspiring this mantra is from the movie Wall Street, don't let greed over take you when you're trading stocks. It usually comes back to haunt you if you trade in a greedy manner. But I understand what Michael Douglas or Gordan Gekko is saying in a way. He's saying the passion and drive to make money, the desire to succeed, is a powerful force. And you have to have that drive if you want to make money trading stocks. If you to do your research and study, and then place your bets. Nobody makes

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Borrowing Money to Buy Stocks: Good or Bad?

Feb 26, 2011
J. Webster
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Is it bad to borrow money to invest in the stock market? Everyone knows the answer to this: you should not. Should not do it, as in never EVER do this. It’s the worst thing you can do, at least that’s what people say, people like Warren Buffett and Jim Cramer. People that know what they're talking about. So they say. The Risks Why can’t you though? Why is it so bad? If I can borrow $20,000 at 0% interest through a few credit cards, balance transfer the money directly into my bank account, and

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Rick Santelli’s “Rant of the Year”

Feb 26, 2011
J. Webster
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Remember this rant, CNBC stock market maven Rick Santelli reacts to the Obama administration bailout of mortgage failures Fannie Mae and Freddie Mac --at taxpayer expense--and kicks off the new Tea Party movement. Was there any other option though? What is Obama supposed to do? I just don't think there are many options. I think people forget how bad the stock market crash was and if they government didn't bailout all the banks then we would have looked at another Great Depression instead of a great recession.

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Michael Lewis: The Big Short

Feb 26, 2011
J. Webster
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Michael Lewis, who wrote the book “The Big Short: Inside the Doomsday Machine” looks at the financial meltdown on 60 minutes. This book is just an incredible read. What's amazing to me is how the people who didn't believe that the real estate prices were going to continue to go up, and saw the danger of all the sub-prime mortgages, had to wait, and wait and wait, until the collapse actually happened. Many people thought they were crazy, and even pulled money out of their funds, thinking they were going to be wrong. But they

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Margin Call: Aubrey McClendon of Chesapeake Energy

Feb 26, 2011
J. Webster
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Don't forget this. Even CEO's of big companies make this mistake, if you are going to buy on margin then you better have a back up plan in case a world war breaks out or the market just collapses do to some other unforeseen cause. This was a classic margin call during the melt down of the market a few years ago. McClendon was forced to sell 94% of his Chesapeake Energy Corporation (CHK) holdings, the largest producer of natural gas in the United States, which were worth more than $2 billion at their peak:
In July of 2008, with

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The Squeeze of the Week: Priceline (PCLN)

Feb 25, 2011
J. Webster
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Priceline (PCLN) went from $427 to $464, a $37 move over night. Ouch for those who were short and joy for those who were long. It's always a gamble to short in and around earnings with high flyer stocks that can jump or drop in big ways when they report. Nobody wants to gets squeezed if they're short. And just so we have this clear, here's the good old definition of a short squeeze: A short squeeze results when the price of the stock rises and investors who short-sold the stock rush to buy it to cover their

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Accidental High-Yielders

Feb 25, 2011
J. Webster
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In times of worry and panic, and in just an awful market, I think this is a good thing to remember, yes from Jimmy Cramer again: Cramer says in a real bear market, you want to buy the accidental high-yielders, because even if they don't go up, they'll still pay out a decent enough return, and that dividend makes a great cushion that keeps the stock from falling too low.

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