In early March, the Dow Jones Industrial Average eclipsed its previous peak reached in October of 2007. The S&P 500 also achieved an all-time high at the end of the first quarter of this year. The business media have been … Continue reading →

Our investment philosophy focuses on buying high quality companies at reasonable prices. Since the market rebound which began four years ago, the valuations for many stocks have increased dramatically. In general, higher stock prices relative to their earnings and cash … Continue reading →

On February 14th, Centurylink Inc (CTL) cut its dividend by 26% and the stock fell 23%. At the time, the stock was yielding 7%. After cutting its dividend, it will yield 6% going forward (lower dividend, lower stock price). The … Continue reading →

Cyprus’s decision to appropriate a percentage of the deposits in its banking system appears to be another example of the dangers of “reaching for yield.” When high-quality money market funds and savings vehicles provide very little return, there is a … Continue reading →

For the time being, the fall off of the “fiscal cliff” has been averted. The Senate negotiated a compromise on New Year’s Eve that was ratified by the House the following day. Marginal income tax rates will rise to 39.6% … Continue reading →