Posts tagged as:

Francisco Olivera Dubon

The party is over for the credit rating agencies (Part II of II)

October 8, 2009 Marketplace

Written by: Francisco Olivera Dubón One of the most important words in our financial system is trust. Without trust people would not deposit money in banks, banks would not do business with each other, and nobody would lend to anybody. Investors also rely on trust.

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The party is now over for the credit rating agencies (Part I of II)

September 24, 2009 Marketplace

Written by: Francisco Olivera Dubon Few businesses are as lucrative as the credit rating agencies. They sell a service that institutions must purchase by law, when they issue bonds. Competition is scarce as all bond issues must be rated by at least two agencies (three companies dominate the industry).

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Managing risk to maximize value: are you a saver or gambler?

September 17, 2009 Marketplace

Written by: Francisco Olivera Dubón Retail investors typically view the stock market as either place to play with their money, like in a casino, or as a place to grow their savings by investing. The “gamblers” like to trade stocks rapidly and dream of investing in the next Microsoft. They like to brag when they [...]

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Hedge funds: Are the managers a group of geniuses, villains or idiots?

April 30, 2009 Marketplace

Written by: Francisco Olivera Dubón When the media, market commentators and government officials attempt to isolate one group of people or entities as the main villains of the financial crisis, hedge funds and their managers have often been wrongfully singled out.

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Has buy and hold investing finally kicked the bucket?

April 16, 2009 Marketplace

Written by: Francisco Olivera Dubon There has been a constant debate between market commentators and professional investors about the stock market. The prevailing view on stocks is that if one were to hold them for the long-run (ten years or more) investors would earn an extra return over government bonds and other safe investments.

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Should investors be concerned about inflation or deflation?

April 9, 2009 Marketplace

Written by: Francisco Olivera Dubon Value investors typically love buying cheap stocks. These investors usually do not focus on the economy or an industry’s specific performance; they devote all of their attention to one thing: whether an investment has a sufficient margin of safety. If value investors believe that a stock is worth much more [...]

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The Recession: is this a solvency crisis or a crisis of confidence?

March 27, 2009 News

Written by: Francisco Olivera Dubon The media, economists and financiers all have different opinions as to what caused the financial crisis we face today. Many of their assertions are valid, others are flawed; however, the most important judgment is the federal government’s, because it appears to be the only institution left with the power to [...]

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The real question: should companies issue dividends?

March 5, 2009 News

Written by: Francisco Olivera Dubón “Do you know the only thing that gives me pleasure? It’s to see my dividends coming in.” -John D. Rockefeller

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The perfect investment, Greenlight Capital Re, Ltd. (part II)

February 26, 2009 News

Written by: Francisco Olivera Dubón The last article on perfect investments covered a little bit of investment theory. In the world of theory and philosophy perfection can be achieved (efficient markets anyone?), but when it comes down to the “practice,” perfection is only a dream. In the value school of investing, the perfect investment comes [...]

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How to find the perfect investment during the toughest of economic times

February 5, 2009 Marketplace

Written by: Francisco Olivera Dubon Active investors search for “buying opportunities” every day. They read all the news they can digest and carefully analyze different stocks to invest in. Value investors are always searching for undervalued stocks to buy. When investors decide to purchase stocks, they hold them until the stock price reaches its fair [...]

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Why cash is not king and what investors should do about it

January 29, 2009 Marketplace

Written by: Francisco Oliveradubon Fear is now widespread in the financial markets.  Many investors feel this market is too risky and claim that “cash is king.”  However, these two common assumptions have their flaws.  Risk is often perceived by investors – and defined by some academics – as how volatile a stock performs in the [...]

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Who’s to blame? Wading through why investors “pass the buck” for losses

December 19, 2008 Marketplace

Written by: Francisco Olivera Have you ever praised your own skill and stock picking wisdom after one of your stocks surged in price? Do you blame the overall market or external (unforeseeable) factors after one of your stocks significantly decreases in price? Have you ever felt as if you could not sell a stock even [...]

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