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Eddie Herring

 
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  • Can A Successful Dividend Portfolio Be Assembled In 2014? Part 1 [View article]
    Bob

    Good article. To answer your question near the end a margin of safety is very important to me. Dividend growth is also important. Chowder rule somewhat but less so than margin of safety.

    But more important to me is that the business have an economic moat, i.e. a strong competitive advantage. The reason I say this is that I can buy with a margin of safety and the price continue to drop like the proverbial falling knife. The dividend growth can stagnate.

    However, if I buy a company that has a strong competitive advantage, then the likelihood of the company getting in trouble and reducing/stopping the dividend and the price continuing to drop is reduced. It's not guaranteed but the odds become more in my favor.

    So when I'm looking at a company to invest in, I want a good company with a strong competitive advantage, shareholder friendly management, and one I can buy at a good price and own until I'm really old (ha). Finding them hasn't been easy over the past several months. They're out there but you really have to dig for them.

    Again, good article. Eddie
    Aug 28 07:54 PM | 1 Like Like |Link to Comment
  • Why I Will Start Social Security At Age 62 [View article]
    Robert

    Good article and excellent commentary. Thanks for starting the conversation.

    I retired at age 54 and also did several spreadsheet analyses and decided to take SS at age 62 (I'm 61 now). In the intervening years since I've continued to do some contract work that provides substantial income over and above my pension. Now my thinking is that if I'm still continuing to work and receive that income, I'll delay SS until I stop doing that contract work.

    My point is that over time our options and/or choices can change. The best we can do is utilize the information we have at the time and make the most appropriate decision for our circumstances at that time. Even with that there are still so many different ways to peel the SS onion and its complexity that it makes it one of those potential "life-altering" decisions. And a hard to undo decision.

    Again, thanks for starting the conversation.

    Eddie
    Aug 26 07:32 PM | 3 Likes Like |Link to Comment
  • Adding Income And Growth To Your IRA With The CCC DiviDogs [View article]
    Miz

    Nicely done and very informative article. Will enjoy following the future reports.

    Eddie
    Aug 23 11:36 AM | 2 Likes Like |Link to Comment
  • New Dividend Challengers Should Carry Warning Labels: "Caution! Not Recession Tested!" [View article]
    Mike

    Good article and you are absolutely correct. Not only is David Fish's CCC list a good place to start our research but he has done (and continues to do) us all a great service with his list.

    As you point out, it is only a starting place for doing further research. My belief is that you have to dig in to the underlying business. Does it have an economic moat, does it have the fundamentals and future cash flow probabilities to continue paying an increasing dividend and so forth?

    I like Hershey, oh, and Russell Stover, and Whitman's, and Ghirardelli, and Nestle' and Mars, Cadbury, and, well, you get the point...

    Eddie
    Aug 22 07:40 PM | 7 Likes Like |Link to Comment
  • Our Retirement Portfolio Business Plan - Legacy Edition - Part Two [View article]
    "After all I told her "I could be supporting a dozen mistresses..."

    Hardog

    Reminds me of the guy that told his wife when she turned 40 years old he was going to trade her in on 2 - 20 year old's and she told him he wasn't wired for 220. :)

    Eddie
    Aug 20 07:49 PM | 6 Likes Like |Link to Comment
  • Wal-Mart: Where Is The Company Investing? [View article]
    Tom

    Nice article. I read the quarterly report as well and came to the same conclusion as you. I had heard of the issues with staffing from local Wal-Mart employees so I was glad to see they were addressing it. Long WMT as well.

    Eddie
    Aug 19 06:56 PM | Likes Like |Link to Comment
  • Our Retirement Portfolio Business Plan - Legacy Edition - Part Two [View article]
    joni

    Thanks, glad you liked it.

    Eddie
    Aug 19 05:58 PM | Likes Like |Link to Comment
  • Our Retirement Portfolio Business Plan - Legacy Edition - Part Two [View article]
    Bob

    Once again you're taking the lead and setting the example and standard for planning ahead. Well done. You always give great food for thought.

    I think its important that we think of our portfolio in terms of legacy and how it will be handled after when we're gone. Just hoping it will be done the way we want is not enough, in my opinion.

    Additionally, when I think of legacy I like to think of it in terms of my children and grandchildren, and possibly their children, that they will look back as adults and say, you know, Grandpa or GGPa, really thought about what kind of heritage he would leave us.

    I'm fortunate to have had great parents that, while they weren't able to leave a large financial heritage, left a heritage of integrity, honesty, personal responsibility, and respect that I will always cherish. I hope I'm able to leave that and a financial heritage as well to my descendants.

    Keep up the great work and take care,

    Eddie
    Aug 16 05:11 PM | 10 Likes Like |Link to Comment
  • Dividend Growth Investors - Mind Your Own Business [View article]
    Hardog

    Thanks, appreciate you reading and commenting.

    Eddie
    Aug 15 11:56 PM | Likes Like |Link to Comment
  • Dividends Matter If They Matter To You [View article]
    Dave

    An expression I use fairly often is that "investing is personal." By that I mean that each individual investment is personal to each investor. Your investment in Company X is personal to you whereas my investment in Company Y is not personal to you but it is to me.

    Consequently, because of that specific personal reason for investing, what we expect to receive from an investment is of different importance to each of us. I don't think that is really that hard to understand and yet we still get these "all that matters" statements being made.

    Anyway, enjoyed the article. Well said.

    Eddie

    Aug 14 10:31 PM | 7 Likes Like |Link to Comment
  • Dividend Growth Investors - Mind Your Own Business [View article]
    maybenot

    "monster legs" - not hardly, more like old man bony legs. HA!

    I'll keep reading, long as the eyes and brain hold out. Sort of like one of my more outspoken neighbors who was pregnant with her 6th child. She went in to the local country store and some one there said they heard she was expecting again. She replied yes and another guy there said "don't you know how to stop that?" to which she replied, "yes, but I like it too much to stop."

    That's how I feel about reading. :)

    Eddie
    Aug 12 09:11 PM | 1 Like Like |Link to Comment
  • Retirement Strategy: The Absurdity Of Believing That Dividends Don't Matter In Retirement [View article]
    I wonder if anyone has done the math concerning how much money he takes in through dividends, though...................

    Yep.

    http://seekingalpha.co...

    Eddie
    Aug 12 08:37 PM | 2 Likes Like |Link to Comment
  • Dividend Growth Investors - Mind Your Own Business [View article]
    Chump

    Sounds like a good plan.

    Eddie
    Aug 12 08:04 PM | Likes Like |Link to Comment
  • Dividend Growth Investors - Mind Your Own Business [View article]
    Jb92

    I don't know about amazing knowledge but as far as what I do have, I mostly got through either experience (learning the hard way) or reading/studying. I love to read and I read a lot. And I do mean a lot.

    I have close to 3,000 books in my personal library. They cover a variety of genre's in both non-fiction and fiction. And I'm behind on my reading since I have four large stacks sitting near me that are currently waiting to be read. By large stacks I mean from the floor they come up to about mid-thigh. Mostly hardbacks in the stacks with a few trade papers thrown in. And now I'm going to have to add "For God, Country, and Coca Cola" to the stacks. Sigh... :)

    So when the average person (but not the average SA person I think) is sitting down to watch the latest reality tv series, I'm reading. Some books I am rough on because if they have passages I want to refer back to or be sure to remember I'll highlight those passages. Some time later I'll pick the book back up and go through it and re-read the highlighted passages. Helps me to retain information.

    Anyway, that's how I think I come by what little I have. Thanks for the compliment. Best of luck with your investments.

    Eddie
    Aug 12 08:03 PM | 6 Likes Like |Link to Comment
  • Dividend Growth Investors - Mind Your Own Business [View article]
    Chump

    Good to hear from you and you have asked a great question. In my opinion it's a much more difficult issue determining when to sell than when to buy. And one can most definitely get too attached to an investment.

    I personally think some of the question has to be answered by the individual investor's personal goals and perspective. In my opinion on the surface there is nothing wrong with selling an extremely over-valued position.

    Of course that leads to the dilemma of replacing it with another business that is just as valuable. That's not always easy to do either. And sometimes you may have identified a better business and you need to sell in order to raise funds for buying it.

    Where I think we have to be careful is what Peter Lynch described as cutting the flowers and watering the weeds; in other words we hang on to our under-performers and sell our over-performers.

    In regard to Coke I'm reminded of Robert Woodruff, a longtime Chairman and CEO who worked with Coke on up in to his 90's and is the one who actually convinced the board to hire Roberto Goizueta. He owned a lot of shares and was asked one time when was a good time to sell shares of Coke. He replied, "I don't know, I've never sold any."

    I wouldn't go solely by the P/E on whether the company was over-valued but would look at the intrinsic value as well and to what it means to my individual portfolio. P/E's can get out of whack for different reasons.

    And let's also consider that it's possible for P/E's to come back in to line without the price declining, at least significantly, if earnings grow faster than the market recognizes the value and price grows slower than the EPS. In other words the market could be trading sideways while earnings of a particular company are increasing so the P/E drops and before you realize it the P/E reflects a fair value. If you had sold would you be happy? Maybe, maybe not.

    I've been aggravated before when I sold a position I thought was over-valued only to see it continue to climb. Those things happen though in an investment lifetime and you have to take them as part of the learning process.

    I guess I would describe myself as a hesitant seller if I think I have a quality company but there have been times when I sold quickly because I lost faith in the business.

    I guess my answer to your question concerning getting too attached is that at the end of the day you have to take a hard look at the business itself and make a decision if it's still a keeper. Don't go by just the stock price or P/E but look at your long term goals and the intrinsic value of the business and then make a rational decision. And whether it's to sell or to keep, once you pull the trigger on the decision, don't second guess it, just move on.

    Anyway thanks for a great question and I hope I didn't muddy the water too much with a rambling response. Take care,

    Eddie
    Aug 11 10:28 PM | 2 Likes Like |Link to Comment
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