Procter & Gamble - A Dividend Stock To Hold Forever [View article]
After reading some comments I find it very interesting that so many had an issue with the word "forever", but had few comments on the actual article or any objections that PG will be able to grow as it has been for the past 56 years.
PG will likely earn $8/share by 2023.. The price could probably reach $120 - $160 in 10 years, and investors would likely receive close to $35 in dividends over that period. If you disagree with me, please short P&G - I would gladly earn 3% per year by lending you my PG shares ( in addition to any dividends and capital gains I would earn over that period).
The main reason why I don't comment here is because you always get a hoard of people focusing on insignificant details that don't matter, and end up missing the forest for the trees.
Procter & Gamble - A Dividend Stock To Hold Forever [View article]
Thank you for your comment. I like Buffett, and like to learn as much as possible about him and strategy. I like learning about stock market investing in general.
I would not blindly buy because he has done the analysis and purchased a security himself. If I feel comfortable with a stock after I review it, only then I would buy it.
I didn't know that he sold MCD because he bought DQ. I do recall his 1998 letter to shareholders mentioning that BRK shareholders would have been better off if he had not shown to work, as he sold MCD too early.
For DIS, I was referring to his selling of the stock in the 1960s ( 1965 I think). Adjusted for dividend reinvestment, it would have been up 600 times over the past 48 - 50 years. Of course, BRK is up 10,000 times since then...
I would hold PG "forever", although if a car runs me over tomorrow, it would have been for a shorter period of time ;-) If they cut dividends in 5 years, I would be out too ;-)
I found the following very interesting from the 2012 PG annual report - shows shareholder friendly management:
"Operating cash flow provides the primary source of funds to finance operating needs and capital expenditures. Excess operating cash is used first to fund shareholder dividends."
Procter & Gamble - A Dividend Stock To Hold Forever [View article]
Haha, I did set myself up by picking Warren Buffett as one of the largest shareholders for PG ( through BRK). Buffett is awesome, and he is my hero - I like to read everything about him and from him ( investment wise).
However, he does have the ability to do deals that you and I cannot do - buying railroads in 2010, Heinz in 2013, preferred shares of GE, BAC, GS that have high yield and warrants to buy shares at rock bottom prices.
Also, Buffett is not always right. He sold DIS at less than 50 cents/share in 1960s, and MCD at less than $40/share in 1998. It is much better to purchase something you understand, than blindly follow something that someone bought/sold. Always do your homework before buying stocks.
I already addressed the forever thing in the first comment.
For anyone that has read my other articles, they would not have commented on the forever thing. I am always amazed at how quickly people make up their minds, without doing the necessary digging - you cannot address everything there is to dividend investing in one high level analysis of a company.
I just hope (for them) that they do better digging before putting their money to work, and not jump to conclusions. I also hope people are buying things not because Buffett, or Tim or someone else likes it. But based on my interactions with investors, many do not do their own research before buying anything. Which is why I am still going to end with:
The Case For Owning Digital Realty Trust: When Hedge Funds Don't Know What They Are Talking About [View article]
I am not comfortable owning INTC. But I do agree that one needs to have a diversified portfolio, and not be overly reliant on a single stock. I also try to have no more than 4- 5% of portfolio value in one stock. Helps me sleep well at night
The Case For Owning Digital Realty Trust: When Hedge Funds Don't Know What They Are Talking About [View article]
F&G,
I guess markets are not very efficient after all - a hedge fund manager goes short a company, then talks negatively about that same company at a conference, without making much sense. Weak hands panic, and the stock price falls, thus helping the short cover their position at a profit.
Rinse and repeat, and earn your 2 & 20. I am glad investors have been able to capitalize on this opportunity, after doing their analysis and identifying the weakness in the logic of the shorts.
The Case For Owning Digital Realty Trust: When Hedge Funds Don't Know What They Are Talking About [View article]
The so called "straw man" argument is listed as a risk on the 10-k:
"Our tenants may choose to develop new data centers or expand their own existing data centers, which could result in the loss of one or more key tenants or reduce demand for our newly developed data centers, which could have a material adverse effect on our revenues and results of operations."
As mentioned in the article, there are mitigating factors behind this risk.
Obviously PG was a better buy a few months ago. But at that time the problem was that the stock price had not moved for 3 years. There is never a "perfect" time to buy a stock.
Procter & Gamble - A Dividend Stock To Hold Forever [View article]
PG is a great company to hold forever, until something changes. I would take PG at 18 times earnings any day than the crazy P/E ratio INTC had in 2000.
What To Do When Your Stock Cuts Its Dividend [View article]
Hi TIm,
I wanted to double check where did you obtain the historical dividend data behind RDS/B? I would like to see it, as I like going through looking for old information
I was able to obtain historical information going back to 1993 a few years ago, and it showed a consistent increase in distributions.
For the two years i have owned OKS and EPD, the UBTI has been negative in both years.
I am not certain why investors are so afraid of MLPs. If your tax adviser cannot handle them then you need to fire them. I guess investors who are not comfortable with MLPs because of the extra tax paperwork, create an inefficiency in the market that can be exploited by others.
Procter & Gamble - A Dividend Stock To Hold Forever [View article]
PG will likely earn $8/share by 2023.. The price could probably reach $120 - $160 in 10 years, and investors would likely receive close to $35 in dividends over that period. If you disagree with me, please short P&G - I would gladly earn 3% per year by lending you my PG shares ( in addition to any dividends and capital gains I would earn over that period).
The main reason why I don't comment here is because you always get a hoard of people focusing on insignificant details that don't matter, and end up missing the forest for the trees.
Procter & Gamble - A Dividend Stock To Hold Forever [View article]
I would not blindly buy because he has done the analysis and purchased a security himself. If I feel comfortable with a stock after I review it, only then I would buy it.
I didn't know that he sold MCD because he bought DQ. I do recall his 1998 letter to shareholders mentioning that BRK shareholders would have been better off if he had not shown to work, as he sold MCD too early.
For DIS, I was referring to his selling of the stock in the 1960s ( 1965 I think). Adjusted for dividend reinvestment, it would have been up 600 times over the past 48 - 50 years. Of course, BRK is up 10,000 times since then...
I would hold PG "forever", although if a car runs me over tomorrow, it would have been for a shorter period of time ;-) If they cut dividends in 5 years, I would be out too ;-)
I found the following very interesting from the 2012 PG annual report - shows shareholder friendly management:
"Operating cash flow provides the primary source of funds to
finance operating needs and capital expenditures. Excess
operating cash is used first to fund shareholder dividends."
Procter & Gamble - A Dividend Stock To Hold Forever [View article]
However, he does have the ability to do deals that you and I cannot do - buying railroads in 2010, Heinz in 2013, preferred shares of GE, BAC, GS that have high yield and warrants to buy shares at rock bottom prices.
Also, Buffett is not always right. He sold DIS at less than 50 cents/share in 1960s, and MCD at less than $40/share in 1998. It is much better to purchase something you understand, than blindly follow something that someone bought/sold. Always do your homework before buying stocks.
I already addressed the forever thing in the first comment.
For anyone that has read my other articles, they would not have commented on the forever thing. I am always amazed at how quickly people make up their minds, without doing the necessary digging - you cannot address everything there is to dividend investing in one high level analysis of a company.
I just hope (for them) that they do better digging before putting their money to work, and not jump to conclusions. I also hope people are buying things not because Buffett, or Tim or someone else likes it. But based on my interactions with investors, many do not do their own research before buying anything. Which is why I am still going to end with:
"So what"
The Case For Owning Digital Realty Trust: When Hedge Funds Don't Know What They Are Talking About [View article]
The Case For Owning Digital Realty Trust: When Hedge Funds Don't Know What They Are Talking About [View article]
I guess markets are not very efficient after all - a hedge fund manager goes short a company, then talks negatively about that same company at a conference, without making much sense. Weak hands panic, and the stock price falls, thus helping the short cover their position at a profit.
Rinse and repeat, and earn your 2 & 20. I am glad investors have been able to capitalize on this opportunity, after doing their analysis and identifying the weakness in the logic of the shorts.
The Case For Owning Digital Realty Trust: When Hedge Funds Don't Know What They Are Talking About [View article]
Hope we see this trend expand over time. However, you always have risks with a lot of items. If you find mitigating factors, then risk is reduced
The Case For Owning Digital Realty Trust: When Hedge Funds Don't Know What They Are Talking About [View article]
"Our tenants may choose to develop new data centers or expand their own existing data centers, which could result in the loss of one or more key tenants or reduce demand for our newly developed data centers, which could have a material adverse effect on our revenues and results of operations."
As mentioned in the article, there are mitigating factors behind this risk.
Procter & Gamble - A Dividend Stock To Hold Forever [View article]
Ex I have been using Gillette products for a long time.
Procter & Gamble - A Dividend Stock To Hold Forever [View article]
Procter & Gamble - A Dividend Stock To Hold Forever [View article]
My last addition was in April:
http://bit.ly/10mwLrR
Obviously PG was a better buy a few months ago. But at that time the problem was that the stock price had not moved for 3 years. There is never a "perfect" time to buy a stock.
Procter & Gamble - A Dividend Stock To Hold Forever [View article]
Procter & Gamble - A Dividend Stock To Hold Forever [View article]
What To Do When Your Stock Cuts Its Dividend [View article]
I wanted to double check where did you obtain the historical dividend data behind RDS/B? I would like to see it, as I like going through looking for old information
I was able to obtain historical information going back to 1993 a few years ago, and it showed a consistent increase in distributions.
http://bit.ly/18lXLv0
It looked as if the dividends on the British units were based off the dividends in Gulden and then Euro:
What Happens When You Sell An MLP? [View article]
I am not certain why investors are so afraid of MLPs. If your tax adviser cannot handle them then you need to fire them. I guess investors who are not comfortable with MLPs because of the extra tax paperwork, create an inefficiency in the market that can be exploited by others.
Opportunity Costs For Dividend Investors [View article]
http://bit.ly/Y5bcgU
For whatever reason it didn't post here.