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Corporate governance

Business professor criticizes some buybacks

'Fight of Money Bags and Coffers' by Pieter van der Heyden

The Harvard Business Review (September 2006) featured a lead article by Professor Alfred Rappaport of Northwestern Univerity’s Kellog Graduate School of Management that questioned stock buybacks at prices above intrinsic value.

However, Professor Rappaport didn’t object to buybacks below intrinsic value, as had Benjamin Graham, Warren Buffett’s mentor and guru.

US equities

Do stocks offer protection against inflation?

Intrinsic Inflation Protection Varies

There is a common belief that a managed, diversified portfolio of US common stocks provides protection against inflation. However, there is reason to question whether this protection currently exists.

Considering today’s equity prices, relative to intrinsic values, there is doubt as to whether common stocks offer the level of protection against inflation that many presume.

Investment information

Does SEC Total Return protect investors?

Just as an optical illusion fools the eye, the words "total returns" misleads investors.

Millions of investors put money for retirement into mutual funds selected on the basis of “SEC total returns” and the name of the fund. This article explains how the SEC allows funds to use this misleading statistic to the detriment of investors’ interest and to the benefit of fund managers.

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Featured articles on inside pages

Stock buybacks

Stock buybacks and dividend equivalency

Corporations have argued that stock buybacks are equivalent to dividends. This article explains why this is not true and why suggesting buyback-dividend equivalency may constitute fraud.
More ...

Securities Analysis

Crowd sourcing investment research

Free, easily available investment information is largely unexploited. This is because there is too much of it. Information, to be useful, must be processed. This processing has a time cost. This article describes how new technology allows securities research to evolve beyond the industrial techniques of the 20th century.
More ...

US Politics

The decline of mainstream media

In September 2009, President Obama dominated television in his attempt to sell his government-run health plan, despite massive public opposition. Mainstream media has falling revenues and market share as people turn to unbiased sources. More ...

US equities

Households save more and invest in equities

Government economic stimulus programs that have sent money directly to US households have resulted in more saving and less spending. Low interest rates have encouraged individuals to move from debt instruments into equities. More ...

US Bonds

The collapse of the dollar and US bonds?

The extreme spending of the Obama government, combined with irresponsible bank lending policies promoted by Barney Frank and Chris Dodd, portend rising interest rates, the collapse of the bond market, and the end of dollar supremacy. More ...

World Economy

Working off the US trade deficit

Foreigners hold $16.8 trillion in US financial assets as a result of selling more goods to Americans than they buy from them. Since the 'deficit' is in dollars, the US has no problem in 'paying it off'. More ...

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2010-09-24 16:01