Seeking Alpha

Eddie Herring

View as an RSS Feed
View Eddie Herring's Comments BY TICKER:
Latest  |  Highest rated
  • Buy And Hold Is Dead You Say? [View article]
    B&H2012

    Thanks. Glad it's been working for you. Personally though, I'd still want to monitor even the aristocrats (or champions, contenders, and challengers). I'm not talking about watching every day, just periodically checking in on their business performance.

    Eddie
    Oct 24 02:57 PM | 3 Likes Like |Link to Comment
  • Buy And Hold Is Dead You Say? [View article]
    fm

    A lot of people in the industry encourage frequent trading which I believe is a losing strategy. Personally I don't listen to any of the hosts, tv or radio. Just never cared for all the hype.

    Eddie
    Oct 24 02:54 PM | 4 Likes Like |Link to Comment
  • Buy And Hold Is Dead You Say? [View article]
    borkner

    Thanks. I agree, holding responsibly means doing our due diligence both in selecting and in monitoring.

    Eddie
    Oct 24 02:51 PM | 2 Likes Like |Link to Comment
  • Buy And Hold Is Dead You Say? [View article]
    al

    Thanks. My current time frame is also at least 10 years of expected holding time.

    Eddie
    Oct 24 02:50 PM | Likes Like |Link to Comment
  • Your Portfolio Business Plan: You Really Need To Do This [View article]
    Bob

    I'm late to the comment stream but just wanted to say good job in reminding everyone that a good investment plan is critical to the long term success of one's portfolio. Keep up the good work.

    Eddie
    Oct 21 02:53 PM | 2 Likes Like |Link to Comment
  • Retirees: Should You Consider A Dividend Growth Income Index? [View article]
    Bob

    Good continuation of your series. You used the name dividend growth income index, or DGII. I think that fits well. Keep up the good work.

    Eddie
    Oct 12 12:40 PM | Likes Like |Link to Comment
  • Do Younger Investors Have Time To Recover From Investing Mistakes? [View instapost]
    Paul

    No, I didn't take it as critical. I didn't mean for my response to indicate that and hope it didn't come across that way.

    I definitely don't fall into the "young" category. Personally I don't think any of us can completely avoid risk. I do think we should avoid risk that we are not capable of handling or that we don't have the experience to handle. There is risk even in DGI.

    Going back to my driving analogy, I didn't encourage my sons to learn to drive "hot rods" as I called them when I grew up. I was concerned they'd be speed demons like I was in my younger years. So I taught them to drive within speed limits, wear seat belts, use directional signals, drive defensively, etc., all things to reduce risk. Turns out my daughter drives faster than either of my sons. :-) Go figure...

    I believe in doing the same with investing. Once a person gains some experience and gets to a certain level of competence with investing, then if they want to take on more risk, that's their choice. But they need the ability to recognize and manage that risk. And I believe that's pretty much true for any age.

    Eddie
    Oct 5 12:59 AM | 1 Like Like |Link to Comment
  • Do Younger Investors Have Time To Recover From Investing Mistakes? [View instapost]
    I never heard the 1 in 5 mile thing. Interesting. Now I'll have to bring it up to the first Fed. transportation person I run into...
    Oct 4 11:13 PM | Likes Like |Link to Comment
  • Do Younger Investors Have Time To Recover From Investing Mistakes? [View instapost]
    Paul

    As a matter of fact I have asked that very same question before. As you know Eisenhower was the primary driver behind the interstate highway system being built but what a lot of people don't realize is what drove (no pun intended) him. It wasn't just to connect larger cities.

    Based on his military experience and influenced by the autobahn of Germany he saw in WWII, he recognized that an interstate system would provide vital transportation for military uses during national emergencies. Of course he saw the convenience for civilian uses as well, but his military background I believe drove him.

    I recognize that the state routes provide safer and often just as quick trips, depending on the locality, as the interstates because of more people choosing to use the interstates. And of course the reason for that falls back to the different motivations, preferences, and destinations of the people traveling. Of course one could argue that if everyone chose to do like my son and I, then the interstates would become less crowded and we could switch back to them. :-)

    To be quite candid about it I'm not real concerned about too many people switching over to the DGI highway. Here's why I feel that way:

    1 - The modern financial industry, including academia, is geared toward promoting transaction based investing. In other words trading not investing. That will continue to steer people away from DGI type investing.

    2 - Dividend growth investing takes patience. Our society is no longer a society willing to wait for gratification. Hence the majority of those coming to the market want quick gratification. The recent commentary on one of my articles concerning options is a good indicator of that. It's part of the "humanness" that conflicts with long term investing.

    This may sound bad (in the sense of conceit), but I think it takes a certain mindset to choose to utilize the DGI methodology and stick with it over a lifetime of investing and quite frankly, I think the number of people with that mindset are in a minority.

    That's not to say those that don't follow DGI are unwise, unintelligent, foolish, etc. (pick your adjective here) but I am saying it's a different mindset. And personally I think it's a wiser way to travel the investing highway.

    3 - As you point out with Google, Facebook, etc., people are always looking for the next big thing. They aren't interested in the "old ways" even if those old ways have proven time after time to be the best way.

    4 - There will continue to be new technology, new inventions, new requirements for services to support those new inventions, as you pointed out above, that will continue to attract a large number of investors.

    5 - Benjamin Graham originally wrote The Intelligent Investor in 1949. In it he espoused the dividend methodology of investing and separated it from what he referred to as speculation. And there were others before him. Today I think what he called speculation we call trading. Regardless, since 1949 I don't think a larger proportion of people are utilizing the DGI methodology than they did in his day. People change slowly if at all.

    6 - One of the reasons DGI is so "popular" at the moment is because of low interest rates and people are looking for fixed income rates that will provide a better rate of return. As soon as rates start to rise then DGI will become less popular. When that happens I still will think DGI the best way to go overall but there will be many who will start looking elsewhere for higher income rates. And I won't blame them.

    7 - Fear and Greed aren't going anywhere.

    So consequently, and recognizing this is purely a selfish motivation, I'm going to continue, and encourage my family and friends as well, to travel the DGI highway as the best route for investing. :-)

    Eddie
    Oct 4 04:23 PM | 7 Likes Like |Link to Comment
  • 10 By 15: What Happens With Low-Yield High-DGR Stocks [View article]
    "the disagreement is yet useful in solidifying the thinking behind the framework we use to help achieve our goals. Ultimately all of us develop a framework of thinking that works for us."

    Hilo

    I agree 100%. It's the discussion from those differences of opinion that broadens our knowledge of the different ways of looking at investing issues. Even if we don't agree with different opinions or concepts we still benefit from improving our understanding.

    Eddie
    Oct 3 10:29 AM | 3 Likes Like |Link to Comment
  • Wal-Mart Stores: A Retail Heavyweight For My Dividend Growth Machine [View article]
    DGM

    Good review. I'm long WMT and have it on my list to add to my current position if this market continues to decline with the gov shutdown. Recently added XOM as it pulled back.

    Eddie
    Oct 3 09:46 AM | Likes Like |Link to Comment
  • 10 By 15: What Happens With Low-Yield High-DGR Stocks [View article]
    Ok, now let's go get coffee. :)

    Hilo/Dave

    Okay, since Dave doesn't have any new "outside" money and Hilo does have some new "outside" money, Hilo is paying for the coffee. Correct? :-)

    Eddie
    Oct 3 09:20 AM | 4 Likes Like |Link to Comment
  • Should We Want Stock Prices To Go Up Or Go Down? [View article]
    wells

    Thank you. I've just always thought that if someone is willing to not only read my articles but to comment on them as well, then the least I could do is acknowledge that. And in all honesty I really enjoy the dialogue with the various people who comment. Thanks again,

    Eddie
    Oct 2 10:01 PM | 1 Like Like |Link to Comment
  • DGI Transitions Update [View article]
    Inz

    Good update. I think you are making progress and although it may seem slow at times in converting to a DGI methodology I believe it's better to go slow than to rush in to things. I also agree with you that it's better to switch now than close to retirement.

    I'm glad to hear you and your family are doing well after your accident. Hope you continue to do well.

    Eddie
    Oct 2 07:05 PM | 1 Like Like |Link to Comment
  • Do Retirees Need A Dividend ETF Or A Portfolio Of Individual Stocks? [View article]
    "Are most Americans wage earners with 401K's?"

    Latest stat I've seen is that 51 million American workers are participants in 401K's as of 2011.

    According to the CIA factbook there are 155 million American workers but that includes the unemployed.

    According to the BLS there are 11.3 million unemployed Americans which would be a 7.3% unemployment rate, leaving 143.7 million workers. But they don't count the people who have fallen off the unemployment rolls.

    According to Shadow Stats it's more like 23 to 24% unemployment. Using 23% then the number of unemployed is 35.7 million people unemployed, leaving 119.4 million workers.

    So if we believe the BLS then 35% of the American workforce have 401K's. If we believe Shadow Stats then 43% of the American workforce have 401K's.

    I venture to guess the truth is probably somewhere in between.

    Eddie

    Oct 2 05:39 PM | 1 Like Like |Link to Comment
COMMENTS STATS
1,831 Comments
3,475 Likes