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David Crosetti

 
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  • Strategy-Check: Dividend-Based Investing [View article]
    You lay out a very interesting case. In it, you present this scenario:

    "Consider 2 stocks, both of which have a total return of 5% per year. Stock A has no dividend and the price increases by 5% per year, while stock B pays a 2.5% dividend and the price increases by 2.5% per year. If the 2.5% dividend is taxed at 20%, it effectively becomes a 2.0% dividend, and the total return for stock B drops to 4.5% after tax."

    Could you provide an example of companies that actually fit this theoretical model? It would make the theory more plausible if you could actually provide real world examples of stocks that paid a 2.5% dividend and the price increases by 2.5% a year for a total of 5%.

    Likewise and example of a stock that has a history of increasing in price by 5% annually with no dividend?

    Or any multiple that you'd like to use.

    Thanks so much,

    Dave
    Oct 20 09:31 PM | Likes Like |Link to Comment
  • Retirement Strategy: Avoiding The Pitfalls Of Fear And Winning The 'Game' [View article]
    Well respected financial planners are sometimes hard to find, considering that most of present the same tired version of investment strategies that focus on your age and from that, a balance between stocks and bonds.

    I think they all go to the same school to learn the same old tired approach to investing.

    However, if you find that employing financial advisors makes sense, then you are certainly free to do as you wish.

    However, that does not mean that your own opinion has to be treated as some kind of gospel, now does it? Or, are you suggesting that you are the only one who has things the "right" way?

    Dave
    Oct 19 09:05 PM | 5 Likes Like |Link to Comment
  • The New Nifty Fifty, Part 1 - Dividend Growth Style [View article]
    601:

    I would suggest that you might want to read the article.

    The concept here is that there is no universally accepted group of stocks that investors should purchase. You keep stating the obvious.

    10 investors, who are primarily dividend growth proponents selected 50 stocks that they consider to be the "best of breed."

    Oddly enough, there were only 5 companies that every one of the 10 investors had in common.

    The point is, as you point out, is that there is no such thing as a Nifty 50. Even in the 1970's when a list that is known as the Nifty 50 was promoted by the large investment houses, individual investors made their own decisions to buy or not buy from that list--in much the same way as the 10 investors have also produced a varied and complex list of their own best ideas.

    I had 16 stocks that no one else had on their lists. Does that make me a genius? Nope. But I had 34 stocks that other people also had. Individual investors are as different as snowflakes. No two are completely alike and that is what you should be taking away from this article.

    If you don't have MSFT on your own list of favorites--it's ok. Not everyone in this exercise had MSFT either.

    Dave
    Oct 16 03:43 PM | 8 Likes Like |Link to Comment
  • The New Nifty Fifty, Part 1 - Dividend Growth Style [View article]
    Mike:

    Very well done and much appreciated!

    I think what struck me the most was the fact that there were differences in the stock selection by folks who generally would consider themselves DGI strategists.

    It reinforces the notion that investors can share a particular strategy, but at the same time have the freedom to select companies from a very wide and diverse pool of stocks.


    Dave
    Oct 15 05:41 PM | 13 Likes Like |Link to Comment
  • Buy And Hold Is Not Buy And Forget [View article]
    I think that ownership of individual stocks means that an investor has got to become more actively involved in managing his/her portfolio.

    Let's face it, when people say that 70% of active managers do not "beat their benchmark" that there are obviously 30% that do.

    That requires stock selection, valuation metrics, and the willingness to admit that a particular company no longer fits into the business construct that one has created in their portfolio.

    It happens. I no longer own INTC for example, not because I don't like the company, but because of the lack of dividend growth. That money was better utilized elsewhere.

    So, yeah, in my own view, "buy and hold' is somewhat of a dated idea. I prefer "buy and monitor." Remember, I don't have to be "right" all the time. Just be right some of the time and everything else takes care of itself.

    Dave
    Oct 15 02:49 PM | 3 Likes Like |Link to Comment
  • My Roth Conversion Odyssey (Part 1) [View article]
    Dude:

    Are you on drugs or something?

    No one cares. Write an article, but god-almighty, enough already.
    Oct 15 09:44 AM | 15 Likes Like |Link to Comment
  • Dividend Growth Portfolio Fall Checkup And Semi-Annual Review [View article]
    User:

    Get the app, download the book, save it as a PDF, cancel the app.

    It's not all that freaking complicated, now, is it.
    Oct 15 09:38 AM | 2 Likes Like |Link to Comment
  • It Is Time To Take A Shot With Sturm, Ruger & Co.? [View article]
    Mex:

    Take it that you don't invest in tobacco, big pharma, defense contractors, soft drink companies and alcohol companies?

    Or is your morality conditional?

    just curious.
    Oct 14 09:57 PM | 5 Likes Like |Link to Comment
  • My Roth Conversion Odyssey (Part 1) [View article]
    Money withdrawn from a 401k or a traditional IRA is taxed as ordinary income.

    The tax would be relative to your income level and your corresponding tax bracket.
    Oct 14 09:47 PM | 4 Likes Like |Link to Comment
  • Retirees: How To Make The Most Out Of Your Next 15 Years [View article]
    But, the Roth IRA distributions are not taxable and can be reinvested into either a taxable account or if the person who inherited the Roth has earned income from employment, he can use the funds to load his own Roth account.

    Either way, the Roth money is allowed to grow for 5 additional years (before the person inheriting has to withdraw) and the monies withdrawn can be used for investing toward the future.

    Dave
    Oct 14 01:36 PM | 1 Like Like |Link to Comment
  • Retirees: How To Make The Most Out Of Your Next 15 Years [View article]
    DF:

    There is also a space where the "r" key used to be. Just a rubber nub, that now that I'm used to it, I can't use a computer with an actual "r" tab.

    Dave
    Oct 14 10:32 AM | 2 Likes Like |Link to Comment
  • 45 Attractive Dividend Growth Stocks In Today's Overheated Stock Market - Part 1 [View article]
    Mike:

    That would be great. Looking forward to it. With great expectation to see how you wrap it all up. Should be a winner-winner, chicken-dinner!

    Dave
    Oct 13 10:44 PM | 1 Like Like |Link to Comment
  • Retirees: How To Make The Most Out Of Your Next 15 Years [View article]
    Mike:

    My "n" sticks.

    Old computer. Old user.

    Dave
    Oct 13 09:54 PM | 2 Likes Like |Link to Comment
  • The Soda War Rages On With No Clear Winner In Sight [View article]
    Rose:

    I didn't move. I sold the house in California, but am cleaning the garage of the house in Mississippi. I want to organize the garage so that I can take all of the crap that's loaded in a POD and put it into the garage.

    You see, there is no end game in sight. You clean up your garage and get rid of the crap in it, to bring even more crap into your clean garage.

    Sometimes I think I've already died and I've been assigned to hell.

    I think that I'm the only one in my family that recognizes pure lunacy.

    Dave
    Oct 13 08:11 PM | Likes Like |Link to Comment
  • The Soda War Rages On With No Clear Winner In Sight [View article]
    Rose:

    Late in life, I spent 3 years working for a Pepsi distributor here in Mississippi. It was the longest 3 years of my life. Not that they were bad, it was just because the nature of the business has changed so much and it's not a lot of fun anymore.

    When I was at Coke, in operations, we used to play wicked pranks on one another, we'd all hang out on the weekends, and we were all connected like family.

    Then the bean counters came in and screwed everything up.

    But, it's an anomaly about KO stock and 3%+ yield. While I prefer 3.25%, let's not be greedy. Wait for it and go for it with limit orders.

    Dave
    Oct 13 08:08 PM | Likes Like |Link to Comment
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