The Tax Cuts and Jobs Act (TCJA) that was passed by Congress in late 2017 brought some important changes to the Federal tax code that will have a material impact on many Americans. While many taxpayers will see their tax burden shrink for 2018 as a result of these changes, others will be less fortunate and will actually end up paying more in taxes than they would have under previous law.
Weibo is China’s version of Twitter, except that it’s better managed and more profitable. This year, revenues and profits are expected to grow by more than 50% year-over-year; it’s a great business, with a long runway of growth ahead of it. Best of all, we have found a way to invest in Weibo at a 2019 EBIT multiple of less than 6x by purchasing shares of SINA Corporation.
Famed investor Warren Buffett generated fantastic returns over the course of his life by following a specific strategy of making investments in deeply undervalued companies when nobody else was interested in them. In the example quoted above, Warren Buffett took advantage of an outstanding buying opportunity in South Korea, once again committing capital to investments that were unpopular while avoiding those investments that were popular.
Have you ever wondered why it seems like every homeowner believes his or her home is worth more than the market says it’s worth? Over the last decade, with a few brief exceptions, American homeowners have consistently believed that their homes were worth more than their appraised values would suggest (at one point as much as 8% more, on average).
Short selling strategies play an important role in a complete investment portfolio. Using environmental, social, and governance (ESG) characteristics, a sustainability-focused investor can incorporate a long/short strategy into his or her portfolio by going long the firms with excellent ESG characteristics and shorting those that have poor ESG performance.