Category: Stock

Oracle of Omaha

Right Answer ~ Wrong Question

If you’re wondering what ultra-low or even negative interest rates will do to the financial markets, you are not alone. Warren Buffett is wondering too.

When I asked Warren Buffett specifically what are the actual implications of negative rates, he went positively Yoda on me. “I would say that’s the most important question in the world,” said the Oracle of Omaha. “And I don’t know the answer. Now, if we knew the answer, it wouldn’t be the most important question.”

National Emergency Coronavirus

Exploiting the Virus

Google (GOOG +5.9%) is helping to develop a website where people can find drive-through testing sites if they have symptoms, according to Dr. Deborah Birx, White House Coronavirus Response Coordinator. The website will be online starting Sunday evening, Trump said.

Walmart (WMT +6.7%), CVS (CVS +8.6%), Walgreens (WBA +9.2%), Target (TGT +9.7%), Roche Diagnostics (OTCQX:RHHBY), LabCorp (LH +8.6%), Quest Diagnostics (DGX) and Becton Dickinson (BDX +6.2%) are among companies working with the government.

Late-Cycle Behavior

Virgin Galactic founder Richard Branson.

Investors’ new mantra: Apple AAPL, +1.71%  and Amazon AMZN, +1.25% are for boomers — we buy Tesla TSLA, +7.29% and Virgin Galactic SPCE, +11.58%. Apple and Amazon are pedestrian stocks of yesterday; they do nothing interesting. Vacationing in space on a Virgin Galactic flight is around the corner. Soon we will be mining on Mars. When we return from Mars to the lowly planet Earth to visit our aging parents, we will be getting around in flying autonomous electric taxis from Tesla and staying in homes powered by Tesla solar roofs and batteries.

Public service announcement: If you’re an investing novice, you are setting yourself up for a painful lesson

Both Virgin Galactic and Tesla provide short-term trading opportunities for sophisticated investors both from the long side and the short side. Our system gave a signal to short-sell Virgin Galactic for a very short-term trade near the highs.

However, there was no point in publishing that signal because the shares were not readily available to short. The plan is to trade only those setups where there is reasonable risk control. It is also important to pay attention to Arora’s 14th Law: “To be successful at investing and trading, become a master of position sizing.”

Nigam Arora  Nigam@TheAroraReport.com

PE Ratio

The price to earnings ratio (PE Ratio) is the measure of the share price relative to the annual net income earned by the firm per share. PE ratio shows current investor demand for a company share. A high PE ratio generally indicates increased demand because investors anticipate earnings growth in the future. The PE ratio has units of years, which can be interpreted as the number of years of earnings to pay back purchase price.

BIAWX – Brown Advisory Sustainable Growth Fund Investor Shares ~ Qty 105.55

Top 10 Holdings As of 08/31/2019

CompanyYTD Return
(as of 09/25/2019)
% of Assets
Microsoft Corp+37.21%5.06%
American Tower Corp+40.36%4.96%
Danaher Corp+39.59%4.70%
Visa Inc Class A+32.85%4.50%
Intuit Inc+35.35%4.46%
Amazon.com Inc+17.73%4.03%
Thermo Fisher Scientific Inc+26.16%3.84%
Verisk Analytics Inc+44.72%3.81%
Alphabet Inc A+19.23%3.67%
UnitedHealth Group Inc-10.82%3.52%

BIAGX – Brown Advisory Growth Equity Fund ~ Qty 67.99

Top 10 Holdings As of 08/31/2019

CompanyYTD Return
(as of 09/25/2019)
% of Assets
Microsoft Corp+37.21%4.52%
Visa Inc Class A+32.85%4.49%
Zoetis Inc Class A+45.87%4.46%
SBA Communications Corp+51.96%4.45%
Amazon.com Inc+17.73%4.03%
Roper Technologies Inc+33.65%3.76%
PayPal Holdings Inc+23.84%3.75%
Intuit Inc+35.35%3.68%
Thermo Fisher Scientific Inc+26.16%3.66%
Sherwin-Williams Co+38.40%3.45%