After a period of relative calm, the Italian elections and fight over the sequester underscore some of the structural problems facing the global economy; investors should be prepared for volatility, says Morningstar's Jeremy Glaser.
Even if Congress can expediently pass Monday's compromise on tax rates, big hurdles on entitlements, the debt ceiling, and possible further tax-code revisions await, says Morningstar markets editor Jeremy Glaser.
Buffett has the discipline to guide capital back into his firm rather than use it for dividend payouts, but most companies are better off distributing excess cash to shareholders, says Morningstar's Josh Peters.
Warren Buffett is the most glorified and respected investor of all time. And rightfully so. After all, he became the world’s wealthiest man by essentially picking stocks. But Warren Buffett is also remarkably misunderstood by the general public. I personally believe the myth of Warren Buffett is one of the greatest tricks ever played on the small investor. To the average investor Buffett is a folksy frugal regular old chum who just has a knack for picking stocks. You know, he just picks those “value stocks” and let’s them run, right? Well, nothing could be farther from the truth and here we sit with an entire generation of investors fooled by the idea that value investing/buy and hold is the single greatest way to accumulate wealth. With the poor results of the last ten years investors have finally started to challenge this thinking