Dividend Growth Investor

Bucking the Trend, American Express Maintains Its Dividend

Kewgardens,

I would analyze BWL-A in a future post.

Best Regards,

DGI

Should You Follow Warren Buffett’s Latest Moves?

Jason,

Most of JNJ and PG's products are things people use on a daily basis. Even a great depression shouldn't hit these companies too hard.

City Desk,

Buffett took a 3 billion francs in convertible preferred shares in Swiss Re that pay an annual interest rate of 12% and will be convertible into common stock after three years at a price of 25 francs a share, subject to anti-dilution adjustments.
If the entire investment of 3 billion francs were converted into shares, Buffett could end up holding more than a fifth of Swiss Re


On Feb 19 04:11 PM Jason C. Rines wrote:

> Just a guess as to WB's thinking on J&J and Proctor and Gamble.
> These companies are mixed Consumer Healthcare products and have greater
> exposure to consumers pulling spending back then say, a straight
> Pharmaceutical company selling essential Rx treatments. The writing
> is on the wall, we are in depression.

Should You Follow Warren Buffett’s Latest Moves?

Saltaway,

Actually the opposite is true - investors who mimicked Buffett's portfolio would have outperformed the markets over the past 30 years:

papers.ssrn.com/sol3/p...


On Feb 19 08:31 AM SALTAWAY wrote:

> I would point out that the average investor that follows and mimics
> Buffet's picks has not done well over the last 20 years or so. Because
> of the time lag between his moves and public knowledge, you are doomed
> to underperform him. I agree with Michael above. I wouldnt copy him,
> I would let him run my money by buying brk.a or brk.b

Should You Follow Warren Buffett’s Latest Moves?

Hedged in,

Another reason could be that he needs to raise as much cash as possible, in order to participate in other preferred stock or fixed income deals, where he could earn a 10%-15% annual dividend yield, with very favorable terms for his company. Ordinary investors do not however have the purchasing power to participate in such favorable deals at this time.


On Feb 19 06:53 AM Hedged In wrote:

> This is good attempt to rationalize Warren Buffett's moves -- thank
> you.
>
> But look again at this:
> "One reason why he might be selling solid dividend stocks such as
> Johnson & Johnson and Procter and Gamble could be that they haven’t
> fallen as much as the broader market, which makes them ideal for
> Buffett to deploy the funds in other beaten down sectors."
>
> If Buffett sees greater value in other sectors, then shouldn't other
> investors too?

Should You Follow Warren Buffett’s Latest Moves?

Michael,

Of course you could always buy BRKa/b and not need to do any research. Of course i enjoy trying to decipher what made Buffett decide to rebalance his portfolio.

Furthermore i see a major risk in BRKa/b that Buffett's investment objectives might not be the same as yours. Also in Buffett "retires" from BRKa you will be left with stock in the company, but the Buffett premium will soon evaporate and the stock will fall.. The end result is that you would have learned a valuable lesson - always do your own homework,


On Feb 19 06:01 AM Michael Zhuang wrote:

> Why make things more complicated than necessary? Why not just buy
> BRK.A or BRK.B?

S&P 500 Dividend Aristocrats and Your Portfolio

It's funny that few people know that there are far more companies that have increased their dividends for more than 25 years, than are present in the Dividend Aristocrats index..

www.dividendgrowthinve...

A Buy & Hold Forever Dividend Stock Portfolio

You have an interesting portfolio. Here's another take on a set it and forget it dividend portfolio.

www.dividendgrowthinve...