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Doug Meeks

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  • Team Alpha And The Foundations For Financial Freedom [View article]
    The greed that you guys are talking about is no more a problem than the envy that eats at people. There IS some kind of class system developing economically but I truly believe that before there are "have and have not" there are people who think and think not. It is easy to see the money and use that to draw the line to divide the two groups ( it's not as simple as two groups) but for the most part the money is just the result of hard work, an eager mind and the ability to get along with people and not having the money is some degree of the opposite. Not all people will succeed, having a system in which most have the option for success is more important than assuring that same success for every one.

    I have seen more chances for wealth thrown away by envy and misunderstanding than wealth earned from privilege or greed.
    Mar 23 01:11 PM | 17 Likes Like |Link to Comment
  • Rising Risks For Dividend Growth Investors [View article]
    People are paying premiums for stable income that has a real chance to stay ahead of inflation. Price might get choppy but the income has more dependability and as long as that meets needs smart investors will keep paying premiums. It's a demographic trend. Price remains uncertain. This is a solid work up, thanks for taking time to write. It would be nice to see a dividend chart up there with the prices, that will show you what people are paying for, growing income. I personal feel that interest rates are the biggest threat to upsetting this trend.

    great read, Mr. Parnell.
    Mar 28 07:06 PM | 16 Likes Like |Link to Comment
  • A Young Investor's Portfolio - 2013 Review [View article]

    No foreign exposure? AFL get's 75% of it income from Japan. Coke has most of it's sales out side the US and from probably 100 countries. CVX is launching world size liquid natural gas projects that will sell into the Asian markets. I agree that it's not the same as owning a foreign company based in another country, but do you think those companies are not connected to the US economy?

    Anyway, you seem to know Mr. Sorensen pretty well and his tolerances and needs and goals.

    But not to totally disagree with your comment, Vanguard does have some pretty good funds and I believe that Vanguard is a good steward of the assets they manage and keep fees at proper levels. Many of those funds are in stocks and will preform in line with a diverse portfolio of 20 or so holdings, the direct holdings will give a great advantage to compounding income over time. In Mr. Sorensen's portfolio you will see many of the same holdings you would find in a Vanguard value fund.

    You should model his portfolio and see if it will be as volatile as the Vanguard S&P 500 fund, or a Value fund, or bond fund. Remember that over time the efficient use of dividends creates a margin of safety that a fund will never give you because it has basically only it's price to measure it performance.

    Some people picking stocks will fail not because they are stocks but because they are bad choices, I'm not seeing that here. CVX has a 15 yr CAGR (with re-invested divs) of 11.2% the S&P is 4.1% over the same time frame (fast graphs).

    AFL - 15 yrs CAGR - 7.5%
    KO - 15 yrs CAGR - 4.6%
    O - 15 yrs CAGR - 15.5%
    PG - 15 yrs CAGR - 8.7%
    JNJ - 15 yrs CAGR - 7.8
    WAG - 15 yrs CAGR - 4.7%
    MCD - 15 yrs CAGR - 12%

    I'm pretty comfortable with this portfolio.

    Feb 16 02:15 PM | 15 Likes Like |Link to Comment
  • Apple Mostly Just An Overvalued Hardware Stock; New Catalysts Needed [View article]
    Long AAPL. I voted with lots of money.
    Feb 4 08:18 PM | 15 Likes Like |Link to Comment
  • Kinder Morgan Energy Partners' Unexpected Move Into Tankers Is Savvy Investment [View article]
    Great read Mr. Gue. Thanks for taking time to write. Long KMP.
    Jan 2 02:14 PM | 15 Likes Like |Link to Comment
  • Why Dividend Growth Investors View Stocks Differently [View article]
    This is a solid article. Dividends change the way you look at stocks. An open mind works best, keep learning, keep getting better, and get some dividends!
    May 8 11:22 AM | 15 Likes Like |Link to Comment
  • Dave Van Knapp Positions For 2014: The Best Dividend Growth Stocks Will Pay Out More This Year [View article]

    Many advocate re-balancing a portfolio. Please be very careful when selling a big move up, the replacement DG stock would need to have the same quality of income. Most of these DG stocks are well followed and don't just explode up to a new high. I have done some rebalancing based on big moves, I have seen some benefit to income growth, not enough to justify taxes in taxable accounts when compared to the original holdings.
    Jan 10 10:10 AM | 14 Likes Like |Link to Comment
  • Is Apple's iPhone Losing The Smartphone War? [View article]

    I have had 10 laptops running windows, yes 10. Six years ago I got my first MacBook. And I'm typing this response on it now, In terms of my productive time, and information management, and just flat out being able to do my job this has been the best investment I have ever made in technology. I don't know what else to say, if you need a laptop to work every time, year after year what else can you do.
    Nov 22 11:04 AM | 13 Likes Like |Link to Comment
  • Retirement Strategy: Buying The Dips Will Increase Your Income [View article]
    RS, it would be more fair if you tried to quantify the dividends you do not get while you wait for the dips. If if takes 3 months to wait for that dip then you just lost about $400 bucks (on your first example). Now, the next step is to ask yourself what did you get for that $400 you gave up......

    In your example you would have gotten an extra $70 per year into perpetuity - pretty good deal for $400 dollars. Had you used that $400 to buy some other stock then it would not be an extra $70 it would be about $56 a year still a good deal. And to be even more fair, if you are retired and have no source of income other than your dividends then you would have less money to invest when the dip appeared because you would have been waiting for the dip and spending down your investible capital. That is only if there IS a dip in 3 months...... if it's 6 months then that $70 per year just cost you $800 bucks and at that rate waiting would do no good if you have to wait 15 months because by that point the income lost would be worth the same as the dip. You would have $2000 in divs at the end of 15 months, and that could be used to earn $70 per year at $3.5%. Making that dip worthless and creating the need for a bigger dip.
    Dividends build a margin of safety over time because they are a continual return.

    This is event horizon would be a shorter time frame for yields over 3.5%.

    Waiting is good if you do not need the income, if you are spending your capital ( or even you cash buffer) while you wait then be careful that is very destructive to your earning potential. Waiting is timing the market, which is something very difficult to do.

    That being said, I do buy dips, but I try to quantify them.
    Great read, patience and planning are very important.
    Feb 14 06:55 PM | 12 Likes Like |Link to Comment
  • Final Thoughts On Beating The S&P 500 Index From A Dividend-Growth Perspective [View article]
    I have no trouble trouncing the 4% rule for my clients, let me tell you what is more relevant than all these facts about what portfolios should look like. I agree with all of these points, so much I have a career making them happen for people. But.....

    Most people do not have enough money to live on the dividends (even as a supplement). So they are working as long as they can, and then going to capital draw down and hoping to last as long as they can (different methods are used). After that....well, everybody is different.

    I tell most clients who can not live off of 6% yield that it's trouble to be in the stock market, to much yield is to much risk, and draw downs are bad news when price drops, everybody knows this. MOST free financial advice is geared toward this type of person, and these people have zero idea that they can get a growing stream of tax advantaged income from dividends. I told a guy that one time and he looked at me and said......"What IS a dividend?"
    Aug 8 08:55 PM | 12 Likes Like |Link to Comment
  • Apple - Buy Back Shares Aggressively, Now [View article]
    Long AAPL. In the furious Apple discussion I can only add that I have voted with my money.
    Nov 15 08:22 AM | 11 Likes Like |Link to Comment
  • Whitestone REIT: Small Cap, Big Dividend, Pays Monthly [View article]
    Having worked on the ground with Whitestone I can very confidently say that they know how to get a building leased. I don't know if the Senior leasing team is still in place, but I was VERY impressed with them when they acquired the Air Liquide Building in North Dallas, I was a big part of the Dallas expansion at that time. These guys put the money in to make these properties perform well, and I can not stress how well the lease team performed during a rather choppy market.
    Oct 22 07:29 AM | 11 Likes Like |Link to Comment
  • Linn Energy Acknowledges Production And Cash Flow Issues, But Reaffirms Dividend Rate [View article]
    This is much like the stock price action before a div cut, in fact it almost enables the company to cut the dividend because the discount is in place already. Hard call to make, I'm long LINE and some smaller amounts of LNCO. A coverage ratio of 0.95 is not a worry to me, so I'm holding, and hope to see some small growth in production to close that gap. I'm not holding my breath for the BRY deal, I'm more worried about the impaired ability of LINE (at this discount) to make quality acquisitions in the place of BRY. The management team seems competent and I'm going to stay with them a while longer. Solid article Tim, calm and informative, thanks for taking time to write and giving me a place to share my opinion.
    Aug 12 12:47 PM | 10 Likes Like |Link to Comment
  • The Absurdity Of Not Investing In Dividend Stocks For Retirement [View article]
    My biggest client said to me one day....... "Doug, I don't want to know"

    That was after I started to explain to him the Becton (BDX) was going to help keep him ahead of inflation and why. So my point here is that this man worked hard his whole life, spent far less than he ever earned and tried lots of advisors to build his wealth before he came to me. Now he just cashes these dividend checks and has watched his income and net worth moving up. Some people just do not want to manage their own money or do not have time. So I started this firm, we ONLY do Dividend Growth Investing. I hope that I am a growing part of the financial services business that does this for people, fee-only, dividend growth portfolios only. I have heard from many clients that this is hard to find in an RIA firm. This was hard to believe at first but I guess it actually is tough. I am still firm in saying that NOBODY cares as much as you do about your money. Keep reading and studying this stuff.
    Jul 27 07:42 PM | 10 Likes Like |Link to Comment
  • Are You Really Ready To Retire? [View article]
    There is no reason to get hung up on 5 years of cash. What if an investor was retiring with 2.5 million in investable assets, but this person was very conservative and lived in Texas where costs are low ( I had to plug Texas!). Annual expenses could easily be $60,000 or under.

    This investor might want to keep a $300,000 dollar buffer. no problem. Good idea, in fact, great idea and that is 5 years of cash.

    I can think of many reasons to have 5 years cash, but I can think just as many reasons not to have that kind of cash. One plan does not work for everybody, personal information is needed.
    Jan 26 09:03 AM | 9 Likes Like |Link to Comment