The Results from Earnings Season

Earnings season is upon us in full force and it appears to be a mixed bag. While financial such as banks and brokers are getting hammered (some would say slaughtered judging by the 50% to 80% drops some stocks have seen), others such as Harley Davidson are facing headwinds from the economic environment. Still, other companies such as Johnson & Johnson and Coca-Cola experienced huge surges in profits of 40% and 19%, respectively, partly due to overseas currency gains brought on by the falling dollar. For the average person, this points out the prudence of wise diversification.

In our own case, this has been a marvelous opportunity. Despite the huge volatility and temporary depression of equity prices, we've managed to not only load up on huge blocks of our favorite companies, but also a number of other asset classes that would have never otherwise crossed our radar. That doesn't mean it's easy to watch if you have no stomach for fluctuations in your net worth, but we're more concerned with permanent capital loss and typically target five to ten year payback periods.