Seeking Alpha

David Crosetti

 
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  • AT&T And 'Losing' To Inflation [View article]
    This is probably the most irrelevant comment thread that I've followed on SA for a long time.

    I feel a little "dirty" for having spent time reading some of the commentary.

    I find it interesting that some people think that they have this need to save me from my own investment destruction by telling me things like "total return is the only thing."

    I guess that means that trading stocks is part of that philosophy? I mean how exactly would one capture this total return without initiating a sale?

    That I should invest in VOO, SPY, VFINX, etc. Why would I choose to do that? Rhetorical question. There are lots of reasons.

    However, my reasons for NOT investing with Index funds is my business. It's not anyone else's business and telling me that I should/must invest in Indexes is like trying to bully me.

    Why don't those who have different opinions write about those opinions and then allow themselves to develop a following of like minded individuals?

    This whole idea of there being a "best way" to invest and all of the lists of reasons pro and con are just noise. Anonymous noise.
    Dec 27, 2014. 10:36 AM | 6 Likes Like |Link to Comment
  • AT&T And 'Losing' To Inflation [View article]
    622:

    But how many times do you really need to keep saying it?

    We get your point. Being overloaded with one company in your portfolio is not good portfolio management.

    But, if I have a $100k portfolio and it has every position representing a 1% position in the portfolio, then I own 100 different stocks with a value of $1k each.

    If I own 30 stocks and have T at 1%, leaving the same 100k to be invested in 29 others, then I could have almost any combination of percentage holding in the other 29 stocks that one could imagine.

    Would I likewise be foolhardy in that 30 stock portfolio by owning a 10% position of say MSFT? INTC? MMM? ABT? (you choose).

    Risk and reward are a double edged sword. I don't see T as a "growth stock" but as an income stock. Having an inordinate amount of it in a portfolio is something that some people might do, especially when you look at the relative price stability of the stock.

    Dave
    Dec 27, 2014. 10:36 AM | 4 Likes Like |Link to Comment
  • Peter Lynch On Dividend Growth Investing [View article]
    Taking a stock like KO for example.

    Over the last 52 years, the company has increased their dividend every year by 8-9%. The stock currently pays a 2.75% yield with a $1.22 a share dividend.

    So, how exactly can a company increase its dividend 8-9% a year and not have that dividend represent a yield of 5, 10, 15, or 20% over time?

    The reason is that the stock price has changed. It has increased and reflects a 2.75% dividend.

    Chicken or egg?

    Dave
    Dec 25, 2014. 09:18 PM | 3 Likes Like |Link to Comment
  • Peter Lynch On Dividend Growth Investing [View article]
    Is that the same as "it depends on what your definition of "is" is?"

    Let's add this one to the discussion, then:

    Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas.

    -Paul Samuelson
    Dec 25, 2014. 12:02 PM | 2 Likes Like |Link to Comment
  • Peter Lynch On Dividend Growth Investing [View article]
    If investing is entertaining, if you're having fun, you're probably not making any money. Good investing is boring.

    George Soros
    Dec 24, 2014. 10:10 PM | 2 Likes Like |Link to Comment
  • The Great Weight Debate: Considering The Total Dividend Return Rule [View article]
    I don't pretend to speak for Chowder, but my understanding is that his metric uses the current yield of a stock and the 5 year dividend growth rate for that same stock.

    So for example, if we look at PM, the 5 year DGR is 28.4 + the current dividend of 4.6 would equal a Chowder number of 33.0.

    In and of itself, that number is meaningless. It is only a starting point to doing due diligence on the stock in question.

    If you are a speculator, then have fun with taking the highest ranking Chowder Rating companies, do no due diligence and go out and buy them. As long as you are doing that in a "make believe" portfolio without real money, then good for you.

    I would suggest that you might want to have a discussion or two with Chowder so that you fully grasp the nuances and the construct of his Chowder Rule, before using it as your sole investing metric.

    Dave
    Dec 21, 2014. 02:32 AM | 3 Likes Like |Link to Comment
  • Dividend Growth Investing: An Introduction To Creating Wealth (Part 2) [View article]
    Stop and jg:

    The dollar amount really doesn't matter.

    Getting started is what matters.

    There's a saying among golfers. When they leave a put short of the hole, the other players will say: "Never up, never in."

    If you don't get started investing, you are guaranteed to not make anywhere near 4 million over a lifetime.

    That, you can take to the bank.

    Dave
    Dec 19, 2014. 03:48 PM | 6 Likes Like |Link to Comment
  • It's New! It's Nifty! It's The Dividend Growth 50! [View article]
    dnorm:

    Did you ever look at any of the investments that Mark Twain made? It's an interesting study in and of itself.

    Perhaps worth an article.

    As an aside, I read the story about Roger Bannister, the first man to run a mile in less than 4 minutes. Everyone thought that doing that was impossible. Yet, Bannister "overestimated his abilities" and actually did it.

    Now, it's a relatively regular occurrence with many athletes.

    Things change all the time.

    Dave
    Dec 19, 2014. 12:04 PM | 5 Likes Like |Link to Comment
  • It's New! It's Nifty! It's The Dividend Growth 50! [View article]
    Market:

    I would agree that rebalancing can be a good thing. I practice it myself.

    My questions were related to the methodology used to arrive at the numbers that a previous commenter made.

    How much rebalancing enhances returns is somewhat problematical when you go back into time.

    The problem is that the investor may or may not have owned these 50 stocks. (Survivorship) The investor may have sold "winners" and reinvested that money into more shares of the "losers." The investor may have parked the money to the side and waited to redeploy holding cash for some time.

    I could go on.

    When you assume things, you tend to get them wrong. I was asking legitimate questions, trying not to assume anything in the rebalancing. Evidently, that ruffled a feather or two.

    I didn't realize, evidently, that asking a question of another commenter was "not allowed." I had been under the impression that we are all here to learn and when someone makes a statement without a proof point, then I like to have a bit more clarification.

    Dave
    Dec 19, 2014. 02:24 AM | 4 Likes Like |Link to Comment
  • It's New! It's Nifty! It's The Dividend Growth 50! [View article]
    G:

    Couldn't help myself. Didn't think that you would actually get an answer. When you look at the list there are a bunch that are in this portfolio of Mike's.

    I thin a lot of the newbies are overthinking things.

    Dave
    Dec 19, 2014. 02:24 AM | 2 Likes Like |Link to Comment
  • It's New! It's Nifty! It's The Dividend Growth 50! [View article]
    User:

    With my Schwab IRA account, I don't get free trades. However, I haven't done anything with that account in the last 5 years, other than collect dividends and reinvest them.

    Now, Schwab does have a program where you can get 300 free on-line trades.

    You can qualify with a deposit of $50k and you can put that money into a number of different accounts. Rollovers qualify, so if you are changing brokers, you can qualify for 300 free on-line trades.


    Dave
    Dec 18, 2014. 10:57 PM | 1 Like Like |Link to Comment
  • It's New! It's Nifty! It's The Dividend Growth 50! [View article]
    Geekette:

    Here you go.

    http://bit.ly/1zaf0il

    Dave
    Dec 18, 2014. 08:50 PM | 2 Likes Like |Link to Comment
  • It's New! It's Nifty! It's The Dividend Growth 50! [View article]
    Bobby:

    Try reading the article for clarification. First, Mike did not pay commissions and may of us also do not pay commissions on trades at our brokerage houses.

    Second, there is no cost to reinvest dividend at your brokerage. I've been doing it for 30 years and have never been charged anything for reinvesting dividends into new shares of stock.

    If you go to Mike Nadel's profile and then click on "articles" it will drop you to all of the articles that he has written. Begin with the one that introduces the Nifty Fifty and follow along.

    Then, it will become clear to you. Also, if you read Mike's comments, he has addressed the issue of commissions on more than one occasion.

    The portfolio beginning balance is "net."

    Dave
    Dec 18, 2014. 06:11 PM | 4 Likes Like |Link to Comment
  • It's New! It's Nifty! It's The Dividend Growth 50! [View article]
    Owner:

    Suggest you read Mike's articles leading up to this one. The methodology for the stock selections that are in Mike's portfolio are explained in great detail. The companies that you mentioned, while very good companies, did not make the cut from the framework that was used to blend a new portfolio.

    Please. Read the articles and you will have a much better understanding of what and why these 50 stocks are in the portfolio.

    Dave
    Dec 18, 2014. 06:10 PM | 4 Likes Like |Link to Comment
  • It's New! It's Nifty! It's The Dividend Growth 50! [View article]
    Sometimes, it seems that Human Nature just won't allow us to stop "overthinking" things, especially with investments.

    Perhaps its because money is involved? I don't know.

    Dave
    Dec 18, 2014. 12:17 PM | 2 Likes Like |Link to Comment
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