Investor Beat, Feb. 26, 2014

The top business stories from Wednesday's market, for today's Foolish investor.

Feb 26, 2014 at 6:56PM

DreamWorks Animation 's fourth-quarter earnings came in lower than expected, with its movie Turbo taking the blame. Despite pulling in $280 million internationally, the cost to produce the film meant that just wasn't enough. And with the stock up more than 100% in the past year, the market will look poorly on any earnings miss.

In the lead story from Wednesday's Investor Beat, host Chris Hill and Motley Fool analyst Bill Barker look at DreamWorks over the past year, and what it has moving ahead. While Chris is less than optimistic that its next feature, Mr. Peabody & Sherman, will be a game-changer for the company, Bill notes that this game is more about expectations than performance.

Then, food industry equipment company Middleby hit an all-time high today after the company announced in its Q4 earnings report that profits were up 36%, and revenue was up nearly 40%. Bill notes that the addressable market for the company is enormous and continuing to grow both domestically and internationally, and the guys also discuss the company's incredible execution of its growth-by-acquisition strategy over the years. While an all-time high may look intimidating for investors, Bill still sees the possibility of another 10-year run for the company that could be just as impressive as its past 10 years.

Also, fourth-quarter profits came in lower than expected for Boston Beer, and the company lowered guidance as well, but the market didn't react nearly as badly as it could have. Bill looks behind the scenes and points to one of the best problems a company can have -- more demand than it was able to easily meet. He discusses the company's strategy, whereby, instead of just leaving demand unmet, it spent a bit extra to meet demand, even if there were some inefficiencies along the way.

And finally, Bill discusses TRI Pointe Homes and tells investors why this California-based homebuilder is lighting up on his radar this week.

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Bill Barker and Chris Hill have no position in any stocks mentioned. The Motley Fool recommends Boston Beer, DreamWorks Animation, and Middleby and owns shares of Boston Beer and Middleby. Try any of our Foolish newsletter services free for 30 days. 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.

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.

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