The Motley Fool's Weekly Editors' Picks
Fools were out and about this past week in an investing world jam-packed with actions and ideas. Here are three articles you might find useful as you decide how to invest your money.
100 Mind-Blowing Facts About the Economy
Following are six of 100 mind-blowing facts about the economy compiled by Fool analyst Morgan Housel.
- A Honda Civic hybrid starts at $24,200 and gets 44 miles per gallon. A Civic with a normal gas engine starts at $16,000 and gets 39 MPG. If you drive 15,000 miles a year and gas averages $4 a gallon, it will take 47 years for the hybrid to justify its cost over the traditional model.
- Boeing (NYS: BA) accounts for almost 2% of all U.S. exports.
- The U.S. makes up less than 5% of the world's population but a third of the world's spending on pharmaceuticals, according to the IMS Institute for Healthcare.
- Five of every six American families earn more than their respective parents did, according to the Pew Economic Mobility Project.
- Apple (NAS: AAPL) earned more in net income last quarter than its entire market cap was in 2004.
- Five years ago, coal provided about half the nation's electricity. Today, it's about one-third. Natural gas' share during that time rose from 21% to 30%, according to the Energy Information Agency.
Fool analyst Austin Smith owns shares of Philip Morris (NYS: PM) and is bullish on the international tobacco company. However, he doesn't turn a deaf ear to the bear case. This week he brought investors three bearish arguments on Philip Morris.
Australia recently mandated that all tobacco products be sold in the same drab packaging containing graphic images of smoking's health risks, Austin reported. That's not good for any tobacco company, but it hits Philip Morris especially hard because it relies so much on its brand to sell its product, he said. Philip Morris loses a strong hook if its cigarette boxes look just like every other companies' boxes.
Watch the video to hear more about reasons to perhaps consider selling Philip Morris.
4 Stocks With Room to Run
When Berkshire Hathaway's (NYS: BRK.B) Warren Buffett talks, people listen. And then they ponder. "The 'Oracle of Omaha' was not his usual optimistic self as he made cautionary comments about Europe and the U.S. housing market," the guys at MarketFoolery noted. That might cause consternation among investors, but those who want to profit over the long term will be ready to pounce on the opportunities after they're done pondering the pessimism.
Fool analyst Joe Magyer suggested to listeners that Buffett's own company is a good buy. "I think Berkshire itself is a great pick-up at these prices," Joe said. "It's at a 16-month high, but I still think it's really cheap." Berkshire "B" shares are priced in the mid-$80s. Fool analyst Jason Moser suggested that investors consider Amazon.com (NAS: AMZN) as it expands its distribution network and continues to reshape and redefine retail. "Today's price is a very fair one as a long-term holding," Jason said. Amazon shares are selling around $225.
Watch the video for more analysis of Buffett's remarks.
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The article The Motley Fool's Weekly Editors' Picks originally appeared on Fool.com.Fool online editor Kris Eddy owns no shares of any stocks mentioned in this article. The Motley Fool owns shares of Apple, Berkshire Hathaway, and Amazon.com.Motley Fool newsletter serviceshave recommended buying shares of Berkshire Hathaway, Apple, and Amazon.com, as well as creating a bull call spread position in Apple. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days. The Motley Fool has adisclosure policy.
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