Investor Beat - May 8, 2013 - The Market's Latest High | Summary and Q&A

TL;DR

The Dow crossing 15,000 may seem like a significant milestone, but investors should be cautious as it could attract inexperienced investors at the wrong time.

Key Insights

• 💨 Big numbers on the way down present better investment opportunities than reaching milestones on the way up.
• 🥺 Inexperienced investors entering the market at the wrong time could lead to sell-offs when the market declines.
• ❓ Companies like Whole Foods and Disney may be overvalued at their current prices.
• 😮 Energy and insurance sectors have potential opportunities for investors as they have not kept up with the rising market.
• 😀 WebMD is facing challenges due to a decline in advertising revenue from Big Pharma.
• 🍉 Zillow's increased spending on advertising and competition from Truly may impact its earnings in the short term.
• 😃 Yelp faces competition from bigger players in the mobile space like Google, Yahoo, and Facebook.

Transcript

today we break out the champagne as the Dow index crosses the all important 15,105 Mark investor beat starts now thanks for watching I'm Chris Hill joined in studio today by Matt Argus singer and Jason Moser all right guys all the attention all the hubub about the Dow crossing the 15,000 Mark um but recently we had Warren Buffett making the comment... Read More

Questions & Answers

Q: What is the significance of the Dow crossing 15,000?

The milestone itself is not a guarantee of success, as it is just a headline number. Investors should focus on long-term performance rather than short-term milestones.

Q: Should investors be concerned about inexperienced investors entering the market at this time?

Yes, there is a concern that inexperienced investors may be attracted to the market at the wrong time, leading to a potential sell-off when the market declines. It is important for investors to be cautious and consider the overall market conditions before making any investment decisions.

Q: Are companies like Whole Foods and Disney overvalued?

It is possible that companies like Whole Foods and Disney may be overvalued at their current prices. Investors should be cautious and consider the fundamentals of these companies before making any investment decisions.

Q: What sectors present potential opportunities for investors?

Energy and insurance sectors have been left behind and may present potential opportunities for investors. Companies in these sectors that have not kept up with the rising market could be undervalued and worth considering.

Summary & Key Takeaways

• Warren Buffett believes that big numbers on the way down are more important than reaching milestones on the way up, as they present better investment opportunities.

• While the Dow crossing 15,000 is a positive sign, it is important to remember that it is just a headline number and does not guarantee long-term success.

• Companies like Whole Foods and Disney may be overvalued, while energy and insurance sectors present potential opportunities for investors.