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Eddie Herring

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  • Dividend Growth Investing: An Introduction To Creating Wealth (Part 2) [View article]
    "A pretty major negative about dividend investing is that the constant cash inflow into the account tempts people to take it out and spend it."

    Retail

    I view it as right the opposite. The ever increasing cash flow makes me want to hold those shares and accumulate even more cash flow in to the account. I'm less tempted to sell because of the increasing inflow of cash.

    Eddie
    Mar 25 02:25 PM | 3 Likes Like |Link to Comment
  • Dividend Growth Investing: An Introduction To Creating Wealth (Part 2) [View article]
    Dave

    Good stuff, good series. Buy at value is a must and compounding rocks! For me the next great thing has been the old best thing... like KO, PG, and JNJ.

    Eddie
    Mar 25 11:04 AM | 2 Likes Like |Link to Comment
  • Interest Rate Environment 2013-2023 [View instapost]
    Norm

    Interesting. Thanks for reminding us of the impact of Fed action (and inaction) on these type assets.

    Eddie
    Mar 25 10:23 AM | 1 Like Like |Link to Comment
  • Total Return Is Not All That Matters In The Accumulation Phase [View article]
    zgb

    You are correct, survival is essential. Thanks for reading and commenting.

    Eddie
    Mar 23 11:45 PM | Likes Like |Link to Comment
  • Total Return Is Not All That Matters In The Accumulation Phase [View article]
    Rose

    Somehow in all the hoopla over labels I missed your comment and for that I apologize. I agree with you, I haven't regretted buying quality companies at great value and want to keep doing it in the future. Thank you for the compliment and for reading the article and commenting. Best of luck.

    Eddie
    Mar 23 11:43 PM | Likes Like |Link to Comment
  • Total Return Is Not All That Matters In The Accumulation Phase [View article]
    DS

    Thanks. You make a good point. It works better when it fits us.

    Eddie
    Mar 23 10:42 PM | Likes Like |Link to Comment
  • Total Return Is Not All That Matters In The Accumulation Phase [View article]
    Dave

    Thanks. I've seen similar terms used in WSJ articles.

    Eddie
    Mar 23 03:06 PM | Likes Like |Link to Comment
  • Total Return Is Not All That Matters In The Accumulation Phase [View article]
    chowder

    Nah, you're not nuts. I find it interesting how some only see the young woman and others only see the old woman.

    I first read about this years ago in Stephen Covey's book "The Seven Habits of Highly Effective People." He used it to point out that two people can see the same thing, disagree, and both still be right. It wasn't logical, it was psychological.

    His point was that we see things not necessarily as they are, but as we are, because of our paradigms, perceptions, and as I used it in the article, our perspective. Which means how we view investing...

    Eddie
    Mar 22 09:36 PM | 2 Likes Like |Link to Comment
  • Total Return Is Not All That Matters In The Accumulation Phase [View article]
    Miz & Bob

    Ya'll crack me up! :-)

    Eddie
    Mar 22 05:57 PM | 1 Like Like |Link to Comment
  • Selecting Stocks For My Second Quarter Watch List [View article]
    Bob

    Good job. Your articles are always thorough and show a good thoughtful evaluative process.

    I've wanted to get in to CBRL for awhile but it has always been over-valued when I've had funds I've been willing to commit. I like their business model and especially like their breakfast. :-)

    Take care my friend,

    Eddie
    Mar 22 02:44 PM | Likes Like |Link to Comment
  • Total Return Is Not All That Matters In The Accumulation Phase [View article]
    Dale

    You're inadvertently making my point. You're now calling it "total return stage" yet going strictly by the definition there's no such thing as a "metric" stage. Which means you're using it as a descriptive label.

    I agree, I'm glad we've had this discussion. It's been enlightening.

    Eddie
    Mar 22 01:39 PM | 2 Likes Like |Link to Comment
  • Total Return Is Not All That Matters In The Accumulation Phase [View article]
    ESetser

    Exactly. You took time and started learning the approach prior to entering a distribution phase of your investment life. Well done. Thanks.

    Eddie
    Mar 22 01:01 PM | 2 Likes Like |Link to Comment
  • Total Return Is Not All That Matters In The Accumulation Phase [View article]
    retail

    It's quite alright to dispute it, we can agree to disagree. And thanks but I'm not selling anything.

    Eddie
    Mar 22 12:42 PM | 1 Like Like |Link to Comment
  • Total Return Is Not All That Matters In The Accumulation Phase [View article]
    Gratian

    Sorry, we'll just have to agree to disagree over terminology. "Evil empire?" I would have expected better from you.

    If you refer back to the article content I stated "...I manage a portion of it to seek returns on capital, which means I ultimately want both income and capital appreciation." I hope that indicates I understand what total return is.

    But if I'm having a casual conversation with someone and they tell me they invest for total return, I'm pretty sure they'll mean they're seeking both income (possibly dividends) and capital appreciation. I probably won't say "you invest for a metric?"

    I don't know why you're bringing in never reducing an overvalued holding or rebalancing. I've never suggested that, quite the opposite in fact. I've specifically suggested taking profits on overvalued holdings as well as overweight positions.

    I've also never set a "rule" on harvesting capital gains. I specifically stated investing is personal.

    As I said we can agree to disagree. I wish you the best with your investing.

    Regards,

    Eddie
    Mar 22 12:33 PM | 3 Likes Like |Link to Comment
  • Total Return Is Not All That Matters In The Accumulation Phase [View article]
    kolpin

    Thanks. You touch on what I'm referring to when I say the person focused on the return typically sells when the market is taking a dive is because they're focused on the capital appreciation and they want to protect it at all means. So if they're sitting on 50% gains and the market starts dropping they get emotional and want to protect those capital gains and they sell.

    The experienced investor won't necessarily do that but I'm guessing there are probably more inexperienced investors than experienced. I have no data to back that up, it's just an opinion. I have heard a number of financial advisors say they are often forced to sell by their clients when they don't want to.

    That's what happens in the mutual fund industry all the time and the fund managers are forced to cover the sales even though they may want to stay in the particular stocks. Same thing happens in reverse when they (the fund managers) are forced to buy stocks to invest new money rather than hold cash positions. They have to buy at highs which impacts returns.

    I believe you're correct that a long term investing strategy for the SDI will help deal with that. I know some that their long term investment strategy includes using trailing stops to protect those gains. But they can get stopped out on a sudden market decline if they set the stops too close. They protect their profits to a certain extent but if the market quickly rebounds they're forced to plan new entries. It can be a double edged sword.

    I agree it isn't just restricted to those who invest for total return and any type investor can do it, including DGI's. However, I do believe that focusing on income is less likely to make one sell in a declining market if the dividends are still coming in and growing. That's just my opinion. That's also one of the points that DVK made in his most recent article I think.

    To me the appropriate thing to do is to focus on the underlying business and not the market action. That can be difficult though when emotions get in control of us rather than us being in control of them.

    I do know this for a fact. Over my career I've regretted more sales than I have buys. But that's just me.

    Great comment and feedback. Thanks,

    Eddie
    Mar 21 11:44 PM | 1 Like Like |Link to Comment
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