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Daniel Radakovich

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  • Buy This Coal Miner At A Deep Discount [View article]
    Debt overload, the market cap may be low, but the debt is still high..
    Mar 20 07:16 PM | Likes Like |Link to Comment
  • How You Can Invest Like Warren Buffett [View article]
    Hey Dave, please read Buffett's annual letter from 2012 pages 20-22.
    Thanks
    Mar 11 10:34 PM | Likes Like |Link to Comment
  • How You Can Invest Like Warren Buffett [View article]
    Chowder, you invest the cash when the markets panic and enter a free fall. You don't allocate to have 30% 100% of the time. That re balancing act is straight crap, I don't recommend that. In 2011, when everyone was talking about the decade of no stock returns, I was loading up on a select few, now in 2014 I'm piling up cash waiting for opportunities, you have to be patient, if you feel like you have to be invested 100% in the market 100% of the time then that's fine, but you will just be average.

    Mike, never said I did, but thanks for assuming. The point is Mike, you don't want to be fully invested when an opportunity arises. Omission is an error as well, its just not accounted for. I'd just offer my warning that if everyone looks for dividend stocks and that is the thing to do, be a little more vigilant in your analysis and thinking. Remember interest rates are 0%. Inflation is below 2%.

    RVG- exactly.

    Surf-Yes, cash is for opportunities.
    Mar 11 10:15 PM | Likes Like |Link to Comment
  • How You Can Invest Like Warren Buffett [View article]
    haha, okay Mr. SDS, I'm sure you and your buddies make quite a team.
    Mar 11 10:08 PM | 1 Like Like |Link to Comment
  • How You Can Invest Like Warren Buffett [View article]
    Chowder-The smart money is always waiting on the sidelines.
    Zookbert: Yes. No.
    Mar 11 01:45 PM | Likes Like |Link to Comment
  • How You Can Invest Like Warren Buffett [View article]
    Apparently I proved my point, please re-read my comment and think about it again. Not one of you factored in having CASH, a decent amount 10-30% in short term instruments, ready to take advantage of market panics or recessions.

    Yes, timing improves returns if you take advantage of Mr. Market.

    I know, thinking outside conventional wisdom of having to be invested 100% of the time, all the time, is just so radical.
    Mar 11 12:19 PM | Likes Like |Link to Comment
  • How You Can Invest Like Warren Buffett [View article]
    haha okay what ever you say there jr.
    Mar 11 12:12 PM | 2 Likes Like |Link to Comment
  • How You Can Invest Like Warren Buffett [View article]
    But lets talk about shallow thinking. A company has four options to invest its owners earnings. 1. Reinvest in the business. 2. Acquisitions or bolt-ons. 3. Buy back shares. 4. Dividends.

    Exxon for the longest time had an internal return of invested capital between 25-35% target. What does that do to the business over a long period of time? It's called compound interest, its a beautiful thing. What did Exxon do when they bought Mobil? They bought a company that was 40% of Exxon's current market cap, then they integrated Mobile's business and continued targeting 25-30% of invested capital, which in turn lead to an average return of earnings in Exxon in the mid twenties high teens. Now another decade has passed, Exxon sees value in their shares, being discounted by over 20-30% of their perceived value of the company, so they buy a crap ton. They have a little cash left over, so they pay a small dividend.

    Keep looking for dividend stocks, that's shallow thinking. If you don't look for companies that can earn over 15% of invested capital or retained earnings, you are never going to get a dividend payment worth while. If one bought Exxon in 2001-2002, they have tripled their money and will never worry about selling a single share because they are earning 6-7% a year in dividends.

    Buy a handful of wonderful businesses at a fair price. Or a S&P 500 index fund, we'll see who is swimming against the tide the next time things get crazy.

    With all due respect, anyone worth a grain of salt could have easily tripled their money buy investing in the S&P 500 index 5 years ago, with barely any cost nor worries. Don't be so shallow, have an open mind. 80% of investors can't all be in the top quarter of returns. The more you diversify, seek limited criteria like dividend paying stocks, execute trades, pay taxes, the more you revert to the mean and below average returns. Look around here, how many people own a crap ton of the same stocks, for the same reasons? A lot. They all feel safe. When someone comes along and counters their thesis, they are all a sudden shallow, fact-less, rebels. Over 80% of the wealth in the stock market is controlled by 20% of the people. If you invest in the S&P 500, you can't do no worse nor better than half of investors in the market. Have a cash stash and be tactical with deposits during recessions and panics and you'll move above average.

    It's common sense
    Mar 11 12:34 AM | 7 Likes Like |Link to Comment
  • How You Can Invest Like Warren Buffett [View article]
    hahaha of course, I make no sense, you only believe what you want to believe.
    Mar 11 12:10 AM | 1 Like Like |Link to Comment
  • How You Can Invest Like Warren Buffett [View article]
    Yea, barley any debt, strong cash generation, and small company.
    Mar 11 12:08 AM | Likes Like |Link to Comment
  • Cliffs Natural Resources: Citigroup's Downgrade And How You Can Benefit [View article]
    Is it possible Rio stock price is influenced by currency exchange rates?
    Mar 10 09:30 PM | Likes Like |Link to Comment
  • Want To Double Your Money In 2014? Cliffs Natural Resources And Peabody Energy Are Your Best Bets [View article]
    I don't know if you can, at least for coal. Not diversified enough and horrible financial discipline. Walter Energy today is looking again for a credit agreement, on top of continued downward pricing on met coal. Everyone is producing more, cutting cost per ton (as if it's a no brainer why), but continued leverage and depressed demand will eventually eat away some companies. The price for Peabody is too rich, maybe another 15-25% lower and you have more margin of safety.

    As for CLF, it's interesting to watch, but a lot of steel companies are fully integrating in other emerging markets or at least trying to. So, with China slowing down and steel still being in a slump, it may be best to look at a Posco instead of CLF or Peabody to be honest.
    Mar 10 09:24 PM | Likes Like |Link to Comment
  • How You Can Invest Like Warren Buffett [View article]
    A true quality company sounds like a mythical dragon. It just doesn't exist. There are bad businesses, that sometimes fix themselves and offer great rewards. Good businesses which are just that, good. And great businesses, that produce above average returns if bought at a fair price. Dividends are a policy, if a company focuses too much on dividends, you give up so much for such a small return. And of course, if you use the dividend as income instead of reinvested or allocated to another asset, then you miss out of the eight wonder of the world...compound interest.
    Mar 10 09:18 PM | 3 Likes Like |Link to Comment
  • How You Can Invest Like Warren Buffett [View article]
    I've been noticing a lot of articles about Buffett....they all fail to mention as you proved in this article, that the S&P 500 is the best choice for any long term investor. Regardless if you have to sell shares to meet your "income" needs, under-performance by a couple percentage points every year, compounded every year, for a long time will eventually make a huge difference.
    Mar 10 09:14 PM | 3 Likes Like |Link to Comment
  • Buses Will Be in High Demand by Specialty Vehicle Buyers, Says New GE Capital Survey [View article]
    Berkshire Hathaway owns Forest River.
    Mar 6 03:26 PM | Likes Like |Link to Comment
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