Snap’s IPO, Warren Buffett’s annual shareholder letter and the looming April 18 tax deadline all impact investment decisions. Let’s explore what is happening for growth-oriented investors.
The Simple Truth That Warren Buffett Won’t Tell: Invest in Growth Leaders (Forbes, February 27)
With the release of Warren Buffett’s annual shareholder letter, investors got a glimpse of Buffett’s strategies and criticisms of the current market. However, the author of this article argues that “you may be able to beat the market by putting some of your money into shares of growth leaders.” He looks at two growth leaders, Amazon and Netflix, and the common traits they share that he believes predict success.
Snap Shares Surge in IPO Debut (USA Today, March 2)
With the company repositioning itself as a “camera” company, Snap (SNAP) shares opened on the New York Stock Exchange at $24 a share and then sped past $25. Although the company is not making money and investors aren’t granted voting rights for the shares on offer, there is much optimism about the potential for a successful IPO.
An Outperforming Active Dividend ETF Strategy (ETF Trends, March 1)
This article looks at AdvisorShares Athena High Dividend ETF (NYSEArca: DIVI) and the success it has had over the past year. “The actively managed high dividend ETF can help investors generate high income potential, capture capital growth and diversify through global exposure,” according to the author.
Smaller Bite: Tax Bills Dip for Most Popular Mutual Funds (USA Today, March 1)
For anyone who has a fund in a taxable account, capital-gains tax bills make a big impact on returns. Fortunately, “2016 capital-gains tax bills are smaller for many of the most popular actively managed mutual funds than they were in 2015.” With the forecast of weaker upcoming returns, it is important to keep taxes and other expenses low. Investors can also look to tax-advantaged accounts such as retirement accounts and other tax-deferred accounts to minimize expenses.
Little Pay-For-Performance Among Mutual Fund Managers: James Saft (Reuters, March 1)
A study using the publicly available tax return of mutual fund managers in Sweden looks at the relationship between fund company owners, their managers and investors. The study found “a weak relationship between pay and performance, but a strong relationship between pay and size, measured as fee revenue.” The study does not dive into underlying causes for the findings or remedies, but rather presents data that may help investors come to their own conclusions.
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