Dow Jones Lower as Stocks Diverge

The Dow Jones is down as Disney continued its rise from Friday.

Feb 10, 2014 at 1:32PM

Although we don't believe in timing the market or panicking over daily movements, we do like to keep an eye on market changes -- just in case they're material to our investing thesis.

The Dow Jones Industrial Average (DJINDICES:^DJI) was down just 22 points, to 15,771, at 1:30 p.m. on a slow day for economic news. Thirteen of the 30 Dow stocks were up in early afternoon trading. The S&P 500 (SNPINDEX:^GSPC) was down less than 1 point to 1,796.

Disney (NYSE:DIS) is today's top Dow Jones stock, up 1.7% to $76.95. Disney jumped late last week after reporting better than expected earnings on the strength of the animated movie Frozen. The stock continues to rise this week after Frozen debuted in China. Also, Variety magazine reported that Disney's Marvel is in talks to make a follow-up to April's Captain America: The Winter Soldier. Fool Consumer Goods analyst Michael Finarelli recently gave his take on whether now is the time to invest in Disney. You can see him give his thoughts here.

Worth watching
Carl Icahn announced today he is dropping his proposal for Apple (NASDAQ:AAPL) to repurchase $50 billion in stock in 2014 after proxy adviser Institutional Shareholder Services advised investors to vote against the buyback proposal. It's not really a loss for Icahn, however. If you combine the pace at which Apple has been purchasing shares, about $5 billion a quarter, and last week's announcement of the company's $14 billion worth of buybacks after its worse than expected earnings report, Apple is on schedule to reclaim $34 billion worth of stock in 2014. Even afterward, Apple would still be sitting on roughly $150 billion in cash. I continue to believe Apple should do a special dividend of a large proportion of that cash to shareholders, as that is a far better use of the money than buying back stock while Apple is achieving near-record earnings.

In other news, Congress' debt limit suspension from March ended on Friday. Treasury Secretary Jacob Lew sent a letter to Congress saying that his department would likely run out of money around Feb. 27. The market fully expects Congress will raise the debt limit, as Republican politicians saw a steep drop in approval in October when they were willing to risk a debt default. Warren Buffett has likened a U.S. debt default to a "nuclear bomb." I expect Congress will raise the debt ceiling, but you can never rule out a surprise from lawmakers.

Foolish last words
In both the public and private sectors, governance functions best when stakeholders educate themselves, take an active interest in what's going on, and hold their representatives accountable.

As every savvy investor knows, Warren Buffett didn't make billions by betting on half-baked stocks. He isolated his best few ideas, bet big, and rode them to riches, hardly ever selling. You deserve the same. That's why our CEO, legendary investor Tom Gardner, has permitted us to reveal The Motley Fool's 3 Stocks to Own Forever. These picks are free today! Just click here now to uncover the three companies we love. 

Dan Dzombak can be found on Twitter @DanDzombak or on his Facebook page, DanDzombak. He has no position in any stocks mentioned. The Motley Fool recommends Apple and Walt Disney. The Motley Fool owns shares of Apple and Walt Disney. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

©1995-2014 The Motley Fool. All rights reserved. | Privacy/Legal Information