Latest news with #TheMotleyFool
Yahoo
2 days ago
- Business
- Yahoo
Motley Fool CEO Says The Fool's Edge Is a True 5-Year Time Horizon
The Motley Fool was largely founded on the idea that a long-term mindset produces superior returns. That investing philosophy has not changed in the 32 years since The Motley Fool was launched. A strict horizon of five years or more forces investors to clarify what's important and what isn't. These 10 stocks could mint the next wave of millionaires › There's comfort in knowing you've got options. That's true in terms of careers, relationships, and even investing. Being able to exit a stock position whenever you want makes it much easier to enter that position in the first place. As is the case with anything in life though, just because you have flexibility doesn't necessarily mean you should always use it. Sometimes the smartest decision you can make as an investor is doing nothing. That's because a more active approach to investing often ends up chipping away at your total returns. That's a key takeaway from a recent interview with Motley Fool co-founder and CEO Tom Gardner. When asked about the Fool's approach to picking stocks, he explained: "Our system is saying, we're looking five years out -- we're not the system that's trying to make the call in the next six months." That seemingly off-the-cuff comment is the stuff of market-beating investing wisdom. Gardner's entire thought was this: "Everyone needs to realize that our system is saying, we're looking five years out. We're not the system that's trying to make the call in the next six months. That can happen in financial media, elsewhere. That can happen in trading systems and trading sites... you can go to those sites for that up-to-the-second stuff. It's not really us. We can't help you in that area. But we do think history shows that systems like ours are where the real money is made over the long term." He's right. Most of the money made in the stock market is made over the long run. Or more specifically, most of the net gains the market dishes out are dished out to investors who buy and hold stocks for at least five years. More frequent trading can easily lead to results that lag the market's average performance. It might even drag you into the red. Standard & Poor's regularly updates some interesting statistics that support this claim. In its most recent comparison of passive index funds vs. actively managed funds, the financial giant found that over the course of the past three years, only 15% of large-cap mutual funds available to retail investors in the U.S. actually beat the benchmark S&P 500. The rest lagged it. Things don't get any better when you look at longer time frames, either. Over the past 10 years, 84% of large-cap funds trailed the benchmark index, while nearly 90% of all actively managed domestic funds underperformed the S&P 500. And for the record, it's incredibly rare for one of the leading performers in any given year to remain a leader in subsequent years. Hedge funds don't fare any better, by the way. Although they're built and actively managed with the goal of maximum performance, numbers crunched by investment management outfit Aurum indicate that while the average hedge fund gained a respectable 11.3% last year, that trailed the overall market's gain of 14.5%, extending their long trend of underperformance. There's a lesson for average, ordinary individual investors buried in the numbers. It's incredibly difficult even for investing professionals to predict what the market or an individual stock is going to do over the course of any given few months. Indeed, stocks often do quite the opposite of what it seems like they should do over short-term periods. Yet, predicting how the market or a particular stock is likely to perform in the long run isn't nearly as difficult for informed, disciplined investors. This seems counterintuitive. After all, the further down the road one looks, the blurrier the picture is apt to be. Except that it is the short-term view that's obscured by all the noise that can foment both fear and greed, and in the longer term, that noise often ends up meaning very little. The true nature of an individual company or an entire national economy, on the other hand, will actually shine through given enough time -- say, five years or more. As the legendary value investor Benjamin Graham once brilliantly put it, "In the short run, the market is a voting machine but in the long run, it is a weighing machine." Your chief challenge as an investor is simply to distinguish between the short-term "voting" driven by meaningless noise and the long-term "weighing" that reflects the fundamentals. That's what The Motley Fool aims to do, by looking past the noise to focus on the five-year view. If you can do that, you'll enjoy a competitive edge that most investors don't. It's actually quite freeing once you learn to do this, in fact. In many ways, this mindset not only gives you permission to ignore headlines that won't really matter in the long run, it forces you to focus on the more important details of your prospective investments. It also allows you to spend less time managing your portfolio so you can devote more time to more important matters like your health, friends and family, and hobbies. In other words, working smarter rather than harder can leave investors with bigger profits than they'd be likely to achieve with a more activist approach. Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $425,583!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $40,324!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $674,432!* Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join , and there may not be another chance like this anytime soon.*Stock Advisor returns as of July 7, 2025 James Brumley has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Motley Fool CEO Says The Fool's Edge Is a True 5-Year Time Horizon was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
1 TFSA-Worthy Dividend Stock to Buy and Hold for Life
Written by Joey Frenette at The Motley Fool Canada Not all that many dividend stocks out there are worthy of a spot in your TFSA (Tax-Free Savings Account), especially with the TSX Index sitting within a percentage point or two away from all-time highs. Not only do you need to have a fundamentally sound firm with a solid growth profile and a well-covered payout, but you also need to ensure you're paying a somewhat fair price of admission. With the broad markets looking to make even higher highs this summer, even after all the geopolitical shocks we've been through in recent quarters, investors can expect to pay a hefty premium for the most premier dividend growers. And while it's always best to insist on the largest discount (and, with that, a wide margin of safety), investors shouldn't be too against paying a fair price for a great stock. And in this environment, perhaps the slightest of discounts to your expectation of intrinsic value is good enough to warrant putting a good amount of money to work. CN Rail (TSX:CNR) may be an economically sensitive stock that's been lagging far behind the rest of the market. But history suggests it doesn't take all too long for the $90 billion railway juggernaut to shrug off its bear moments en route to some form of ricochet. Over the past five years, shares of the dividend growth gem have lagged behind the rest of the market by a wide margin, rising just 17% over the period. With shares still in a bear market (down exactly 20% from the top), the name seems as untimely as ever. And while CNR stock's slump could last a while longer (who knows if it's a few quarters or another year) as seemingly worsening trade headwinds and a dip in consumer sentiment hit hard, I do think the name will, in due time, find a way to return to its TSX Index-beating ways. The stock may not be cheap at 20 times trailing price-to-earnings (P/E), but I think it's a fair price to pay for one of the most respected dividend growers in the country. Additionally, the 2.5% dividend yield is close to a full percentage point higher than it was when CNR stock was considered a 'capital gains' play. That's a great deal for a wide-moat dividend growth stock, at least in my books. Bank of Montreal (TSX:BMO) chief investment strategist Brian Belski thinks the trade-oriented names are oversold and perhaps overdue for some outperformance moving forward. CN Rail is one of the names with a favourable rating from Belski and his team. I think he's spot-on to stick with the rail titan as the firm looks to position itself ahead of the next big economic expansion that may very well follow some trade deals inked in the second half. Perhaps the biggest reason to stash CNR stock away for the long haul is its multi-decade-long streak of hiking the dividend. More recently, the firm hiked its payout by 5% despite industry pressures. In good times and bad, CN Rail seems to deliver for income investors, and for that reason, it's worth picking up even as it stays in a bear market while the TSX blasts off to new heights. The post 1 TFSA-Worthy Dividend Stock to Buy and Hold for Life appeared first on The Motley Fool Canada. Before you buy stock in Bank of Montreal, consider this: The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Bank of Montreal wasn't one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years. Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the 'eBay of Latin America' at the time of our recommendation, you'd have $24,927.94!* Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 30 percentage points since 2013*. See the Top Stocks * Returns as of 6/23/25 More reading 10 Stocks Every Canadian Should Own in 2025 [PREMIUM PICKS] Market Volatility Toolkit Fool contributor Joey Frenette has positions in Bank of Montreal and Canadian National Railway. The Motley Fool recommends Canadian National Railway. The Motley Fool has a disclosure policy. 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
Why Wolfspeed Stock Is Sinking Today
Wolfspeed's stock plummeted nearly 19% after a meteoric 500% post-bankruptcy rally. Wolfspeed expects to reduce its debt by 70% and interest payments by 60%, providing some relief as it reorganizes. 10 stocks we like better than Wolfspeed › Shares of Wolfspeed (NYSE: WOLF) are sinking on Thursday, down 19.9% as of 2:26 p.m. ET. The fall comes as the S&P 500 (SNPINDEX: ^GSPC) and Nasdaq Composite (NASDAQINDEX: ^IXIC) rose 0.3% and 0.1%, respectively. The sharp drop doesn't appear to be motivated by any specific news; rather, investors are shedding shares after a major run-up over the past two weeks. Late last month, the embattled chipmaker filed for Chapter 11 bankruptcy and will continue to operate through the process. When it emerges from bankruptcy, Wolfspeed expects to have reduced its debt by 70% and its interest payments by 60%, giving the company some breathing room. From the announcement through Tuesday of this week, the stock skyrocketed more than 500%. It's more than natural for it to retreat after a run like that. Wolfspeed also announced earlier this week that, effective Sept. 1, Gregor van Issum will join the company as its new CFO. Van Issum brings significant experience with strategic financing and transformation in the tech sector, which the company says aligns with its turnaround strategy. While the news has been mostly positive for the past few weeks, I don't think it is enough. There are still too many hurdles ahead to recommend the stock, especially larger trends in its revenue -- it's shrinking -- as the electric vehicle industry it sells to sees its own issues. I believe this latest rally has more to do with hype than reality. Before you buy stock in Wolfspeed, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Wolfspeed wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $694,758!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $998,376!* Now, it's worth noting Stock Advisor's total average return is 1,058% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of July 7, 2025 Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Wolfspeed. The Motley Fool has a disclosure policy. Why Wolfspeed Stock Is Sinking Today was originally published by The Motley Fool
Economic Times
3 days ago
- Business
- Economic Times
This AI rocket stock just posted 400% growth, and it's powered by Nvidia's engine
CoreWeave: The AI Newcomer That's Beating the Market CoreWeave's Secret Weapon Live Events Nvidia's Backing Fuels CoreWeave's Rise Can This Cloud Provider Take On the Tech Giants? FAQs (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel A comparatively new player in the artificial intelligence (AI) field, making waves on Wall Street, is CoreWeave , which was only publicly traded for a mere three months and has already exploded over 300% since its initial public offering, topping the S&P 500's 12% gain, as per a its latest quarter, CoreWeave saw over 400% revenue growth as it carved out a key position in the high-growth AI market, and its performance is comparable to tech giants like Amazon and Nvidia , according to The Motley Fool company is booming as it is helping AI customers with something they need most right now, and that's access to high-performance computing, which is CoreWeave's main business, as reported by The Motley Fool. CoreWeave has invested in 250,000 graphics processing units (GPUs), with its network stretching over 30 data centers and offers customers the possibility to rent the computing they need for any period of time, as customers can lease on an hourly basis, according to the READ: Craving McDonald's snack wraps? They are back — with bold new flavors you need to try Since AI innovation usually depends on the speed at which models can be trained and put into production, CoreWeave's guarantee of increased processing speeds and uptime is a strong selling point, as per The Motley Fool report. The company claims its infrastructure reduces model training times, enabling businesses to get their AI products to market quicker, an advantage that can make all the difference between being ahead of or behind in this sizzling-hot sector, according to the approach has also driven the company to post a triple-digit revenue gain in the recent quarter, and as the AI market is on track to reach into the trillions of dollars, this positive momentum also may continue, as reported by The Motley Fool.A major aspect of CoreWeave's increased demand is its close association with Nvidia, the market leader of the AI boom, as per the report. Not only did CoreWeave become the first cloud provider to provide access to Nvidia's new Blackwell architecture earlier this year, but it has also just become the first to provide access to Nvidia's most advanced chip to date—Blackwell Ultra, according to The Motley Fool report. Even Nvidia sees potential in CoreWeave, as the AI chipmaker owns a 7% stake in CoreWeave, as per the READ: Delta shares take off as tax cuts, trade deals clear the runway for massive gains Although the long-term prospect for CoreWeave appears bright because of the enormous expansion of the AI industry and its initial advantage in AI-focused cloud infrastructure, but the journey ahead might not be smooth, according to The Motley Fool CoreWeave continues to be challenged by technology giants such as Amazon, Microsoft, and Google, which have their own cloud platforms, as reported by The Motley Fool. These giants have deep pockets and loyal customer bases, and CoreWeave will need to keep innovating and demonstrating its special value to differentiate itself to maintain a share of the market, according to the READ: Inside Trump's latest blow-up on tariffs: Furious over climbdown, he goes off on inner circle AI models require intense computing power to train. The faster you can train, the faster you can innovate — and CoreWeave makes that its latest quarter, the company saw revenue jump over 400%, a sign of explosive demand and strong positioning in the AI market, as per The Motley Fool report.
Time of India
3 days ago
- Business
- Time of India
This AI rocket stock just posted 400% growth, and it's powered by Nvidia's engine
A comparatively new player in the artificial intelligence (AI) field, making waves on Wall Street, is CoreWeave , which was only publicly traded for a mere three months and has already exploded over 300% since its initial public offering, topping the S&P 500's 12% gain, as per a report. CoreWeave: The AI Newcomer That's Beating the Market In its latest quarter, CoreWeave saw over 400% revenue growth as it carved out a key position in the high-growth AI market, and its performance is comparable to tech giants like Amazon and Nvidia , according to The Motley Fool report. CoreWeave's Secret Weapon The company is booming as it is helping AI customers with something they need most right now, and that's access to high-performance computing, which is CoreWeave's main business, as reported by The Motley Fool. CoreWeave has invested in 250,000 graphics processing units (GPUs), with its network stretching over 30 data centers and offers customers the possibility to rent the computing they need for any period of time, as customers can lease on an hourly basis, according to the report. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Los ciudadanos chilenos pueden solicitar la ciudadanía estadounidense gc programa Undo ALSO READ: Craving McDonald's snack wraps? They are back — with bold new flavors you need to try Since AI innovation usually depends on the speed at which models can be trained and put into production, CoreWeave's guarantee of increased processing speeds and uptime is a strong selling point, as per The Motley Fool report. The company claims its infrastructure reduces model training times, enabling businesses to get their AI products to market quicker, an advantage that can make all the difference between being ahead of or behind in this sizzling-hot sector, according to the report. Live Events This approach has also driven the company to post a triple-digit revenue gain in the recent quarter, and as the AI market is on track to reach into the trillions of dollars, this positive momentum also may continue, as reported by The Motley Fool. Nvidia's Backing Fuels CoreWeave's Rise A major aspect of CoreWeave's increased demand is its close association with Nvidia, the market leader of the AI boom, as per the report. Not only did CoreWeave become the first cloud provider to provide access to Nvidia's new Blackwell architecture earlier this year, but it has also just become the first to provide access to Nvidia's most advanced chip to date—Blackwell Ultra, according to The Motley Fool report. Even Nvidia sees potential in CoreWeave, as the AI chipmaker owns a 7% stake in CoreWeave, as per the report. ALSO READ: Delta shares take off as tax cuts, trade deals clear the runway for massive gains Can This Cloud Provider Take On the Tech Giants? Although the long-term prospect for CoreWeave appears bright because of the enormous expansion of the AI industry and its initial advantage in AI-focused cloud infrastructure, but the journey ahead might not be smooth, according to The Motley Fool report. As CoreWeave continues to be challenged by technology giants such as Amazon, Microsoft, and Google, which have their own cloud platforms, as reported by The Motley Fool. These giants have deep pockets and loyal customer bases, and CoreWeave will need to keep innovating and demonstrating its special value to differentiate itself to maintain a share of the market, according to the report. ALSO READ: Inside Trump's latest blow-up on tariffs: Furious over climbdown, he goes off on inner circle FAQs Why does GPU access matter so much in AI? AI models require intense computing power to train. The faster you can train, the faster you can innovate — and CoreWeave makes that easier. How much has CoreWeave grown recently? In its latest quarter, the company saw revenue jump over 400%, a sign of explosive demand and strong positioning in the AI market, as per The Motley Fool report.
