Investing can be fun and profitable at times, but it can also be a tricky thing. There are hundreds if not thousand of companies to choose from in dozens and dozens of industries. Some are new and thriving like wireless, broadband and social media. That’s great for companies like Qualcomm (QCOM), Entropic (ENTR) and Facebook (FB) and their shareholders. Others like newspapers such as the NY Times (NYT), book publishers and retail book stores like Barnes & Noble (BKS) are feeling the pain as their industry adapts to what I call the Always On, Always Connected society.
The economy and industry fundamentals are not the only thing to watch and listen to with your investing eyes and ears. One other aspect is the regulatory environment and more specifically new regulations. As we know, business has been saddled with a number of them over the last few years, but none have the ability to impact a businesses’s cost structure like the Affordable Care Act. You know that far better as Obamacare.