Motley Fool Money: 11.28.2014

Effective communication skills are essential in both business and personal life. The Think Fast, Talk Smart podcast, produced by the Stanford Graduate School of Business, offers valuable insights from experts on how to hone these skills. From managing speaking anxiety to taking risks in communication and harnessing nervous energy, the podcast covers a wide range of topics. For instance, Motley Fool Money co-host Dylan Lewis recommends it for anyone looking to learn and grow. In the world of investing, it's essential to acknowledge past mistakes. Ron Gross, from Motley Fool's $1,000,000 Portfolio, shared a story about missing out on Williams Sonoma when its stock price was around $45. Despite his research, he failed to consider the company's strong performance in physical stores and online presence. This oversight cost him potential gains, as the stock is now worth over $74. The lesson? Be open to new ideas and willing to learn from past mistakes.

Investors, including James Early and Ron Gross, had contrasting experiences with their stock picks in 2023. James Early faced a significant loss with the Female Health Company, which failed to protect his subscribers from declining profits and a cut dividend. On the other hand, Ron Gross expressed gratitude for his investment in Apple, which proved to be a turnaround after being written off as a non-innovative value stock. Early also expressed regret for his bearish stance on Facebook, which he later recognized as having great market opportunity in mobile advertising and a visionary leader in Mark Zuckerberg. These contrasting experiences highlight the importance of staying informed, understanding market opportunities, and being adaptable in the ever-changing investment landscape.

Jason Moser, a guest on the show, expressed his gratitude for his investment in Under Armour, not only because of its impressive stock performance, but also because it has become a family tradition, bringing conversations about the company across three generations. On a less positive note, the hosts discussed potential turkeys in the business world. Jason picked Under Armour's competitor, Target, and its former CEO, Greg Steinhafel, due to the infamous "fat girl costume" incident, which damaged the company's reputation. Another disappointment was the ongoing struggles of RadioShack, with its market cap barely reaching $85 million, making it an unlikely investment. Additionally, Brazil's President Dilma Rousseff, whose policies have been seen as anti-business, was mentioned as a contributing factor to the poor performance of Petrobras, a previous recommendation of Jason's.

Accountability is crucial for a CEO during a crisis. The lack of transparency and absence of an apology from Greg Steinhafel, former CEO of Target, during the data breach incident led to significant backlash and negative public perception. In contrast, new investing apps like Wealthfront, Robinhood, and Acorns are disrupting traditional investing methods by providing accessible and easy-to-use platforms for young professionals. While these services offer convenience and minimal effort, it's essential to consider the fees and potential risks before investing. In the case of Rubicoin, an app The Motley Fool is working with, it provides educational content, stock ideas, and a brokerage link for purchasing stocks within the app. As always, it's essential to do thorough research and consider all factors before making investment decisions.

It's essential to consider the risks and potential rewards before making investments. James discussed the coal industry, acknowledging its current struggles but also pointing out potential for flat or slightly growing demand due to Chinese exports. He also addressed the marijuana industry's growth potential, mentioning a specific company, Tweed, which has seen significant gains. However, he reminded listeners that investing in micro cap companies comes with significant risks and urged caution. In both cases, James emphasized the importance of thorough research and understanding the company's financials before making an investment decision.

There are various investment opportunities beyond traditional direct investments, as discussed during this episode of Motley Fool Money. The hosts highlighted Howard Hughes Corporation (HHC), a real estate developer with intriguing projects in various locations, and Apollo Investment Corporation, a business development company offering a 9.7% yield. Additionally, they introduced TripAdvisor (TRIP), a digital advertising platform for the travel industry with significant growth potential and a reasonable valuation. While these companies face their unique risks, they also exhibit strong network effects and cash flow generation. It's essential for investors to explore diverse investment options and stay informed about market trends.

Corporate actions and executives' words can significantly impact a company's public image and future prospects, especially for those aiming to go public. Uber, a private company expected to IPO in 2015, faced damage to its image after a senior executive suggested spending $1,000,000 to dig up dirt on media critics. This incident, while surprising, was not entirely unexpected given Uber's past arrogant behavior. However, offending a large customer base, primarily women, by invading their privacy and suggesting they were not safe, resulted in a flurry of negative reactions, including app deletions. In contrast, Walgreens, a leading consumer healthcare company, had to consider its debt holders' concerns over stock buybacks, demonstrating the importance of balancing the interests of various stakeholders. Companies must be mindful of their actions and communications, as they can have lasting effects on their public perception and business success.

Companies are starting to prioritize long-term growth over short-term gains, such as stock buybacks, and invest more in areas like innovation and health care. This shift was exemplified by CVS's decision to stop selling tobacco products and focus more on health care. From a corporate governance perspective, this matters because shareholders are increasingly holding companies accountable for their actions and demanding greater transparency. Companies are responding by engaging more with shareholders and being more open to their concerns. This trend is beneficial for all parties involved, as it aligns corporate actions with public policy, moral values, and business success. The relationship between corporate governance and investor analysis is becoming increasingly intertwined, and companies that prioritize long-term growth and transparency are likely to see positive outcomes. Overall, we have made significant progress in the area of corporate engagement with shareholders, and this trend is expected to continue with more communication between boards and shareholders.

The movie theater business is facing challenges, as indicated by a 15% decrease in summer box office and significant profit drops for major chains like Regal Entertainment and AMC Entertainment. This trend may not be solely due to a bad year, but rather a shift in consumer preferences towards independent movies and older demographics, who are often overlooked by theaters' focus on teenagers and blockbuster films. The success of movies like "Penguins of Madagascar" and "Guardians of the Galaxy" demonstrates that there is demand for a variety of films beyond the typical big-budget, 3D offerings. Additionally, the potential sale of DreamWorks Animation, which has been artist-led and known for producing popular franchises like "Madagascar" and "Shrek," raises concerns about the future of independent studios and their ability to compete with media conglomerates like Disney, which has successfully expanded its library through acquisitions of popular characters.

The film industry lost two legendary figures, Mike Nichols and Robin Williams, who left indelible marks on cinema. Nichols, a versatile director known for his ability to bring out exceptional performances from actors, collaborated with Robin Williams on "The Birdcage." Robin Williams, a multitalented actor with an unparalleled range, was remembered for his kindness off-screen, employing homeless people on sets and caring for sick kids. As the year winds down, moviegoers should keep an eye out for "The Hunger Games: The Ballad of Songbirds and Snakes" and contenders for Best Picture nominations, such as "The Fabelmans" and "Babylon," which promise captivating stories and stellar performances.

There are several highly anticipated films set to be released in the coming weeks, each with unique stories and impressive casts. Among these, "Unbroken" based on the true story of Olympic athlete Louis Zamperini and directed by Angelina Jolie, is a standout. Another noteworthy film is "Big Eyes," which tells the true story of Walter and Margaret Keane and their controversial art. "Into the Woods," a Broadway show adaptation, and "An Inherent Vice," a Paul Thomas Anderson film, are also generating buzz. Additionally, films like "Wild," "Top 5," and the documentary "Life Itself" are expected to receive Academy Award nominations. For those looking for movies about travel, "Little Women" and "Around the World in 80 Days" are recommended. Overall, the upcoming film releases offer a diverse range of genres and stories that are sure to captivate audiences.

Despite the harsh realities of life and travel, it's important to stay informed and engaged, especially through social media platforms like Twitter. Neil Minow, a well-known commentator on corporate governance and movies, is a great follow for insightful perspectives on various topics. While "Planes, Trains and Automobiles" may not be everyone's favorite movie due to its portrayal of travel frustrations, it serves as a reminder that we all experience setbacks, but staying connected and informed can help make the journey smoother. So, keep following Neil Minow and stay tuned to Motley Fool Money for more insightful discussions.