ThinkFinance.org

I am always looking for a good deal, whether that means buying an extra box of Golden Grahams when they're on sale or pouncing on undervalued stocks. The idea that anybody would sell a stock for less than its worth may seem silly, but legendary value investor Ben Graham (no relation to the cereal) tells us, by way of allegory, how we can look out for these situations.

Buy 10 to 15 high-yielding large-cap stocks today and hold them -- forever.

Yes, you read that right
That's the basic philosophy of the High-Yield Portfolio (HYP) strategy put forth by our friends at Motley Fool U.K. back in 2000.

At first glance, the whole idea sounds a bit crazy. I mean, buying stocks with the intention of never selling them comes off as, well, perhaps a bit naive.

After a closer look, though, the HYP strategy offers some distinct advantages.

But first, let's take that closer look
So how does the HYP strategy choose its 10 to 15 stocks? It chooses only:

Commentary: Shares don't capture the value of the company's parts

When Hindalco Industries' rights share issue opens this week for subscriptions in India, it will test not just investor confidence in an extremely volatile market, but also appetite for a stock that has consistently underperformed for several months.
Hindalco, a member of the Aditya Birla group -- one of India's oldest and largest family-controlled diversified conglomerates -- plans to raise about $1.1 billion through a rights issue that entitles shareholders to buy three additional shares for every seven they hold.

Germany's finance minister on Thursday laid the blame for the global banking crisis on the Anglo-American free-market 's quest for ever-higher near-term profits, predicting the United States would soon lose its role as the world's nt financial power.
"The U.S. will lose its status as the superpower of the global financial system, not abruptly but it will erode," Finance Minister Peer Steinbrueck told the lower house of Germany's parliament in Berlin, according to published reports. "The global financial system will become more multi-polar."

WASHINGTON – President Bush on Wednesday warned Americans and lawmakers reluctant to pass a historic financial rescue plan that failing to act fast risks wiping out retirement savings, rising foreclosures, lost jobs, closed business and "a long and painful recession."

He spoke just after inviting Democrat Barack Obama and Republican John McCain, one of whom will inherit the mess in four months, and key congressional leaders to an extraordinary White House meeting Thursday to hammer out a compromise.

"I know of nobody who is arguing over the amount of money or even that the secretary ought to have the authority to purchase these toxic instruments, these bad debts," said Sen. Christopher Dodd (D., Conn.), chairman of the Senate Banking Committee.

Well, Senator, had you or Treasury Secretary Henry Paulson truly bothered to ask around, you'd surely have found more than a few honest, taxpaying citizens who are, like me, completely outraged over the size, scope and nature of the unprecedented plan to push this country further toward total socialist rule.

Five Days that shook the Financial Market

WASHINGTON (MarketWatch) -- In yet another extraordinary development for Wall Street, the Federal Reserve said late Sunday night that venerable investment banks Goldman Sachs and Morgan Stanley will become bank holding companies, subjecting themselves to stricter federal oversight.
The Wall Street titans will be allowed to transition into holding companies following a mandatory five-day waiting period, and will be able to take advantage of credit from the Federal Reserve Bank of New York in order to complete the transition.
Upon completion, Goldman (GS:Goldman Sachs Group, Inc

NEW YORK – Volatility swept the financial markets again Monday as investors grew nervous about an amorphous government plan to buy $700 billion in banks' mortgage debt. Stocks fell sharply, taking the Dow Jones industrials down more than 370 points, while investors sought safety in hard assets such as gold and oil, which at one point shot up more than $25 a barrel.

The credit markets were still uneasy but not showing the frantic trading they saw last week. And the dollar skidded lower, contributing to oil's surge.

Speculation heats up that bank will sell itself this weekend

BOSTON (MarketWatch) -- Lehman Brothers edged closer to being acquired, possibly in a deal brokered by regulators that could come this weekend.
Shares of the once-thriving Wall Street firm slumped another 13% Friday on concern the sale may come at a distressed price.
Lehman (LEH:Lehman Brothers Holdings Inc
News, chart, profile, more
Last: 3.76-0.46-10.90%

4:00pm 09/12/2008

Delayed quote dataAdd to portfolio
Analyst
Create alertInsider
Discuss
Financials
Sponsored by: