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Featured Article: Why Apple Profits Pack Such Punch on BusinessWeek

When you get down to it, picking out stocks involves valuing companies, and the judgement calls involved in that valuation really depend on your opinion of the business decisions of the management. It is of minor importance that you do not have relevant personal experience in that particular line of business; if this were a necessary condition for investing, none of us would be able to sleep soundly if we used any kind of diversification at all! While it takes entire careers to know every intricate detail of firms and management, you as a (potential) shareholder are empowered – even obliged – to pass judgement on the broad strategy of the company.

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Other candidates for today’s feature:

What Do Great Investors Have In Common – post about Financial Philosophy, which is basically why Buffett is so quotable

Why Does Cisco Need More Share Buybacks Now? – more a corporate finance issue; buybacks are often controversial and used for various purposes, as in this example. Much to learn from it

Altercation over Indexation – Great introduction to the fundamental difference between market-cap vs. fundamental weightings in Indexes and the implications for investing. (for the record, I’m firmly on the side of the fundamental index)