The Lookout Investor

“To  move from the old to what is about to come  is the only tradition worth keeping”.  Marcus   Wallenberg  wrote to his brother  Jacob  in 1946 to convince him to sell the family's interests in the railroad industry and focus instead on founding the airline SAS. The economy runs in cycles. As challenges arise, old business models are replaced by new ones that are more attuned to current consumer demands. Although most are pessimistic about the current economic situation there are some who are going out creating businesses that we may come to know in future years. These new businesses arise when people see an opportunity to fill a need or a new market develops. For example, when the pandemic started quarantine raised the need to meet virtually for people, schools, and businesses needed a way to virtually meet with online this problem was solved by ZoomInfo. Even out of crises, successful companies emerge. There are several patterns to watch for:...

The pandemic has driven many people to fill their newfound free time with day trading and speculation in the stock market. They can yield unprecedented gains and losses. This is the side of the market which more aptly resembles gambling than the classic value investing. Like gambling, for every winner crowing about gains, there are many losers who have lost their nest egg. As a whole, this gambling activity makes share prices detach from the company's actual value. History can help guide us through this time because what may seem unprecedented events, is a phenomenon that repeats itself across centuries. The baseless speculative activities of today are similar to those in 1720 Britain where at the time the South Sea Company reigned as the stock to be traded up and down. The resemblance is uncanny to anyone who is familiar with the South Sea Bubble and our reenactment is happening almost exactly 300 years later. Bubbles are a phenomenon where people buy into an idea of something whi...

Retirement and retirement planning are commonly considered to be problems for later in life, however, the sooner retirement planning starts the better. Retirement planning is one of those things where the longer you put it off the harder it is to deal with once you get to it. By the same token the earlier you start planning the easier the process will become. Many people put off funding their retirement accounts (Roth IRA, 401k, etc.) so they can buy something more appealing at the present time. For example, a new television or even a car depending on how much they have to contribute. This often puts them in a worse financial situation. So don’t wait. In fact, if you are a student working now, even your summer job can get you off to a great start. Why? Because you have time on your side. Let’s take a look at three possibilities based on saving and investing your summer job earnings. The numbers used are three different amounts that are possible to make in a summer and the total ...