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Eddie Herring

 
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  • Buy And Hold Is Dead You Say? [View article]
    DN

    Let me explain further. I think due diligence is required in monitoring but not the same degree (kind) of due diligence as in the initial investment. For example initially I'm looking at the financials in detail, estimating an intrinsic value, recording info, along with doing an in-depth look at the company, it's management, it's product line, and so forth.

    After I buy and while I'm holding I'm monitoring to see if anything changes. I pay attention to quarterly earnings reports, management announcements, news items, etc. But I'm not going back through financial statements or doing company research as I would initially. It's not simply watching a chart. I want to know the company is still a strong business worthy of holding.

    Let me put it this way. Before hand I'm trying to get on board the train. Once I get on board I'm along for the ride but I'm still keeping my eye on the train and where it's going and at what speed. Hope this helps explain it a little better.

    Eddie
    Oct 24 09:05 PM | 5 Likes Like |Link to Comment
  • Buy And Hold Is Dead You Say? [View article]
    maybenot

    Thanks. That being aware of one's emotions can be difficult, especially if we can't channel our inner Kwai Chang Caine. My thoughts are that we have to be disciplined. We have to discipline our thoughts, our emotions, our tendency to short cut due diligence, being patient, etc. And after all, discipline is simply an application of training. So if we discipline ourselves to not let those outside influences change our long term strategy, I think we'll be better off in the long run.

    Thanks. I appreciate your comments.

    Eddie
    Oct 24 08:52 PM | 1 Like Like |Link to Comment
  • Buy And Hold Is Dead You Say? [View article]
    Dave

    Thanks, I appreciate it.

    Eddie
    Oct 24 08:40 PM | 3 Likes Like |Link to Comment
  • Buy And Hold Is Dead You Say? [View article]
    SDS

    Maybe there's an ear, nose and throat MD on here that could tell us for sure if it's a sinus modulation. Ha, just kidding. We agree with the S&P committee decisions not having anything to do with our investments. I'm not sure on the date though on the ADR firms.

    Thanks for reading and commenting.

    Eddie
    Oct 24 08:39 PM | Likes Like |Link to Comment
  • Buy And Hold Is Dead You Say? [View article]
    PTI

    Thank you, Glad you enjoyed it.

    Eddie
    Oct 24 08:32 PM | Likes Like |Link to Comment
  • Buy And Hold Is Dead You Say? [View article]
    JMajoris

    Not sure I understand the question, or at least the why of it. I mean I understand yield on cost but not sure what you're asking?

    Eddie
    Oct 24 08:31 PM | Likes Like |Link to Comment
  • Buy And Hold Is Dead You Say? [View article]
    rn

    Not having much work to do at the end of the year is a pretty good feeling. Makes life much easier come tax time. I noticed a while back looking at my portfolio on one of my broker's website they were showing some short term capital gains and I thought, what the heck, and then realized it was dividends being reinvested. Just went brain dead for a moment I suppose because I knew I wasn't supposed to have any of those.

    Thanks for reading and commenting,

    Eddie
    Oct 24 08:21 PM | 1 Like Like |Link to Comment
  • Buy And Hold Is Dead You Say? [View article]
    emac

    Thanks. Obviously I agree with investing for the long haul. I'm glad it's working for you as well. Take care and hope your investments continue doing well.

    Eddie
    Oct 24 08:14 PM | Likes Like |Link to Comment
  • Buy And Hold Is Dead You Say? [View article]
    cpo

    Thanks. One of the things I try not to do is recommend specific stocks. I do share what I have in my own portfolio so that people understand what I'm speaking of. In a one on one conversation with a person I might even say "I like this company" but I generally qualify it with an "it's your choice." .

    Shortly after I retired in 2008 the company I worked for asked me to come back to manage some projects for them. A lady and close friend I had worked with for over 30 years still there came and asked me what she should do with her 401K funds. When we were both working together (before I retired) she would often ask me what mutual funds she should get in and I would refuse to tell her and she always responded that I was her unpaid financial adviser. So I would tell her what investments I was in and she would then say "well put me in them" even giving me her login and password.

    Anyway, at this time in 08 I didn't have a 401K having rolled to an IRA and also having a taxable trading account. When she came and asked me what to do I said, put it all in a money market account. She did and it went along for a few weeks making nothing and she came back and wanted to know if she should move it back into some mutual funds other people were telling her were making money. I said "move it if you want to, it's your money" and she asked "would you?" and I said no. So she left it in the MMA and shortly after the bottom fell out. Based on what she was in previously we calculated she would have lost around 50-60% of her portfolio value. She retired shortly thereafter with it still intact. I remember it so vividly because it's one of the few times I've ever recommended something specific for someone to invest in. I just have this fear of a recommendation being taken as bad advice I suppose.

    Somehow or other I wound up here on SA writing articles based around my simple philosophy. I mostly write for those new to dividend growth investing, or at least that is who my target audience is. My life philosophy is that I want the part of the world I've occupied to be a better place because I was here (had the same philosophy at work). Maybe I can help some, at least I hope so (but no specific stock advice :-)).

    I echo your statement about financial knowledge. In my opinion, it always comes back to the business and whether or not it's making or is going to make money. What's the old Graham quote about short term voting machine but long term weighing machine? In my opinion the more we know the better we can understand the underlying business we're buying.

    Thanks for your response, it was great, and I appreciate you taking the time to comment. Take care,

    Eddie
    Oct 24 08:10 PM | 8 Likes Like |Link to Comment
  • Buy And Hold Is Dead You Say? [View article]
    Rich

    I get an email almost every day from some firm pushing a new investing or trading technique or hook. One today has a subject line of "Major Stock Reversal Ahead - What You Need to Do Now" from Forbes. Another is "Opportunity Knocks With My..." - unfortunately for them they get deleted without even being opened.

    I agree that we have to have a strategy that works for us. I have no doubt that there are people that make money using different strategies. It may be that it's my personality, or it could be that I'm just lazy, but sitting on my hind quarters collecting income really suits me. (I explain this guaranteed money making strategy in detail in my new book for only $59.95 but if you order now... HA!)

    I also set aside a small portion of my portfolio for non-core investments as I call them. I've commented on that in previous articles so won't repeat it here other than to echo your comment that it does provide opportunities to raise cash for other opportunities.

    Thanks for reading and providing a great comment.

    Eddie
    Oct 24 07:07 PM | 4 Likes Like |Link to Comment
  • Buy And Hold Is Dead You Say? [View article]
    William

    I will. Thanks.

    Eddie
    Oct 24 03:57 PM | Likes Like |Link to Comment
  • Buy And Hold Is Dead You Say? [View article]
    Bob

    Thanks. We're both retired dividend guys who love that dividend income. And David Fish's CCC list. Oh, and we both agree that a thorough investment plan such as this one (http://seekingalpha.co...) is extremely important.

    Eddie
    Oct 24 03:56 PM | 5 Likes Like |Link to Comment
  • Buy And Hold Is Dead You Say? [View article]
    varan

    I don't disagree. I don't think I slammed mutual funds or their managers in my article. In fact, the very first mutual fund I ever invested in was The Magellan Fund run by some guy named Peter Lynch. It did okay. Buy I remember reading somewhere that quite a few investors in the Magellan Fund lost money because they traded in and out, so the buying and holding was key.

    In my opinion mutual funds have their pros and cons just like anything else. For a knowledgeable investor willing to do the necessary work though I think they have more cons than pros. Even those with good managers have problems with issues beyond their control such as redemption's by nervous investors. So for me it's selecting my own companies and then buying and holding them.
    Lowers my transactions costs as well.

    Eddie
    Oct 24 03:49 PM | 5 Likes Like |Link to Comment
  • Buy And Hold Is Dead You Say? [View article]
    ajay

    I disagree. The years you picked are based on market valuations. The buy and hold strategy requires buying quality companies at a discount to their intrinsic value, not the value of the market. For example, the market is hitting all time highs, yet both CVX and XOM are priced below their earnings justified value. Those are just two examples.

    In fact, your date examples are perfect examples of why people lose money. They buy and sell based on what they think the market is doing, buying high and selling low, rather than buying and selling based on the company/business and its intrinsic worth.

    Eddie
    Oct 24 03:10 PM | 10 Likes Like |Link to Comment
  • Buy And Hold Is Dead You Say? [View article]
    wizjinx

    Thanks. Handling those emotions can be difficult at times but it's well worth it in the long run. Glad it's going well for you.

    Eddie
    Oct 24 03:02 PM | 1 Like Like |Link to Comment
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