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Eddie Herring

 
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  • The Dividend Aristocrats: Where Have All The Bargains Gone? [View article]
    Dave

    "In terms of educational value, there is no way this article should be compared to..."

    If you think about it, that's what separates the DGI community from the rest of the forums as well as the SA authors. We place importance on learning and investing with a big picture long term view of an investment philosophy whereas much of their importance is placed on one-stock trading articles. Huge difference in my mind.

    Eddie
    Mar 2 02:00 PM | 9 Likes Like |Link to Comment
  • Why Dividend Stocks Are A Shield Against Mr. Market [View article]
    Tim

    Good article. I agree the less power we let Mr. Market have over us the better off we are. Hmmm, wonder if we could use that approach with the government? :>)

    Eddie
    Jan 4 07:15 PM | 9 Likes Like |Link to Comment
  • Dividend Growth Investors - Mind Your Own Business [View article]
    David

    Thanks. I've often said there's a reason it's called dividend growth investing and not dividend growth trading.

    Eddie
    Aug 9 11:19 AM | 8 Likes Like |Link to Comment
  • How You Can Invest Like Warren Buffett [View article]
    Dave

    This is my favorite type of article. It discusses investing principles that I believe are so key to being successful over the long term. I believe that we do well and will be better off in the long run by concentrating on principles rather than short term thinking such as what the current hot stock of the month is. Excellent article.

    Eddie
    Mar 11 10:49 AM | 8 Likes Like |Link to Comment
  • Can You Uncouple Your Investment Success From Mr. Market? [View article]
    Probably a peace prize would be the easiest. Since 2008 you don't have to actually do anything to earn it, just let people think you have the potential. Hmmm, is that sort of like some growth stocks???
    Nov 21 01:29 PM | 8 Likes Like |Link to Comment
  • Stop The Presses: Academics Confirm That Buffett's Success Is No Mystery [View article]
    Dave

    An excellent article. A couple of things that jump out at me:

    (1) - Buffet's stock selections are the result of doing the leg work, i.e. the due diligence we talk about so much. He looked for quality companies that could be bought when they were at a good price, which we so often refer to as under-valued, and then he was persistent, meaning he held on to them even during difficult times. In other words, a buy and hold quality companies strategy as long as they remain quality companies.

    (2) - I think Buffett recognizes that being a stock picker requires hard work, since I heard him say that the average investor would be better off buying an index fund. In my opinion what he was saying was that his methodology, which includes not only buying quality stocks at the right price but the "will" to hold them through those difficult times, is not typical of the average investor. It's possible the authors recognized that with their statement ending with "have caused many other investors to rethink and retreat from their original strategies."

    While I don't necessarily agree with everything Buffett says or does, I have to say that I think his investing methodology and the teaching contained in his annual letters is excellent. As is this article.

    Eddie
    Nov 18 02:30 PM | 8 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
  • Dividend Growth Investing Needs Some Loving Too! [View article]
    how are your dividend titans doing today???

    Doing great. Just updated the income stats yesterday afternoon and the income for August was up 88% over August 2012 and the past quarter was up 24%. Oh, by the way, that's real income not unrealized gains...

    Eddie
    Sep 3 10:05 AM | 8 Likes Like |Link to Comment
  • Retired Investors: Turbulence Has Returned [View article]
    With my 2 cents I've got to go with Scott on this one. This (http://bit.ly/15h4iFb) describes how I handled an instance where I bought NSC and the price dropped after I bought it. The point is not to think you made a mistake in your entry price because we rarely nail the entry price. The thing you have to decide is if buying it at all was the right thing. In other words, is it a quality company, are the earnings still growing and if they are, are the other associated factors (income growth, payout ratio, moat, dividend growth, etc.) what they should be for a quality company? If all the answers are yes and if every thing is good, and the only thing that is happening is that the price is getting cheaper, then I'm going to be adding.

    You've got to consider more than just whether you're comfortable. A lot of people get "uncomfortable" when prices start going down and those people are the ones selling at lows and taking beatings. If the comfort is based on a judicious review of the characteristics of the business, that's a different matter. If the "business" is making you uncomfortable, that's different than if the "price" is making you uncomfortable. Understanding the difference is critical to long term investing.

    Here's an analogy. Let's say I'm in the market for a new Mercedes. I already own one and am looking at buying another. I've determined it's a quality automobile, good warranty, good performance record, low maintenance, etc. I've looked around and know what the price is. I go to the dealer a week after I last checked just to look again and the price has dropped 10%. I think wow, that's a great deal. But I don't have time right then to buy so I plan on coming back again next week. I go back next week and the price has dropped 20%. I think, what is going on here? I decide to double check to find out if anything is wrong with Mercedes and can find nothing. Still a great car, still a great company. I go back and the price has dropped another 10%. Heck, the price of the new one is less than what I paid for the one I have which is 2 years older. Am I going to say I can't buy this, it's below the price of what I paid for my other one, or am I going to grab my check book before Mr. Mercedes realizes he made a mistake and jacks the price back up? Me, I'm grabbing my check book. But that's just me. We all have to do what we feel is right for us.

    Eddie
    May 30 10:14 PM | 8 Likes Like |Link to Comment
  • Is The 4% Rule Becoming The 3% Rule? [View article]
    Dave

    If it wasn't so pathetic it'd be laughable. The 4% now 3% rule, not your article, I like it. I can just picture the the elderly retiree who's been selling assets getting to the point where the principal reductions are now picking up speed, wondering if there will be enough, creating greater stress/anxiety affecting his health which increases his medical expenses, forcing greater principal reductions, creating even more stress... If only there was a better way, a method where someone could keep the principal and invest it and just live off the interest and the interest would grow enough to cover inflation and not have to stress over selling assets. If only... TPFIC (tongue planted firmly in cheek)

    Eddie
    Feb 27 10:37 PM | 8 Likes Like |Link to Comment
  • Avoiding Tunnel Vision In Your Dividend Growth Investing [View article]
    Bruce

    Thanks for reading and commenting but I think you missed the point of the article. It wasn't to inspire you to buy MSFT. It was to show my process for avoiding what I call tunnel vision, which is overly focusing on a few criteria rather than many other criteria. MSFT was just the example I used. But I am long MSFT.

    As far as insurance I am a retiree and prior to the passage of Obamacare I was on an 80/20% plan with a reasonable deductible. After it passed my monthly premiums went up over 100% so I switched to a CDHP (consumer directed health plan) with a high deductible but lower premiums. It allowed me to set up an HSA that I can contribute to annually and the contributions are tax-deductible. I use it to maintain a large amount of cash to cover major out of pocket expenses like you described. My point is that we have to be pro-active and take responsibility for our own circumstances and choices.

    Hope your recovery goes well. Thanks for reading.

    Eddie
    Feb 23 02:11 PM | 8 Likes Like |Link to Comment
  • Buffett Agrees - Doing Nothing Is The Path To Investment Success [View article]
    Larry

    Good stuff. I think you have to be very deliberate with buying/selling and over-trading is a recipe for portfolio harm. I've kept the following quote from Jesse Livermore for a long time where he said, "After spending many years in Wall Street and after making and losing millions of dollars I want to tell you this: It never was my thinking that made the big money for me. It always was my sitting. Got that? My sitting tight!"

    Peter Lynch said "There is always something to worry about. Avoid weekend thinking and ignore the latest dire predictions of the newscasters. Sell a stock because the company's fundamentals deteriorate, not because the sky is falling."

    Stats shows there's way too much frequency of trading now compared to prior years and I personally think that's burning a lot of investors. Your article is a good reminder that patience pays when you invest in wonderful companies.

    Eddie
    Oct 30 05:16 PM | 8 Likes Like |Link to Comment
  • The Real Better Advice For Seniors: Part II [View article]
    Five Plus

    Good article and followup to the previous article. Using another "western" show analogy from The Gambler, "You gotta know when to hold them, know when to fold them." Focusing on the incremental increasing income is a much higher probability of long term gain than the 10 bagger or giant nugget stock you mentioned. Good job.

    Eddie
    Sep 24 08:50 AM | 8 Likes Like |Link to Comment
  • Dealing With Panic In Dividend Growth Investing [View article]
    Smarty_Pants

    Thanks. Excellent comments. The newer investors coming in may not be aware of the importance of position size to a portfolio, which is one of the reasons I tried to write the article for their perspectives. Hopefully they will learn from the experiences and suggestions from the experienced investors on SA. You are so right that we can obtain benefit from keeping our head when others are blindly panicking. Reminds me of a portion of the old Rudyard Kipling poem "IF" which goes "If you can keep your head when all about you are losing theirs... - well heck, I'll just post the entire poem. It's got a lot of meaning in it that can apply to our investing believe it or not. And where else but on the Dividends and Income area of Seeking Alpha can you learn how to invest, hear snake stories, and read poetry? As Chowder would say... HA!

    If you can keep your head when all about you
    Are losing theirs and blaming it on you,
    If you can trust yourself when all men doubt you,
    But make allowance for their doubting too;

    If you can wait and not be tired by waiting,
    Or being lied about, don't deal in lies,
    Or being hated, don't give way to hating,
    And yet don't look too good, nor talk too wise:

    If you can dream - and not make dreams your master;
    If you can think - and not make thoughts your aim;
    If you can meet with Triumph and Disaster
    And treat those two impostors just the same;

    If you can bear to hear the truth you've spoken
    Twisted by knaves to make a trap for fools,
    Or watch the things you gave your life to broken,
    And stoop and build 'em up with wornout tools:

    If you can make one heap of all your winnings
    And risk it on one turn of pitch-and-toss,
    And lose, and start again at your beginnings
    And never breathe a word about your loss;

    If you can force your heart and nerve and sinew
    To serve your turn long after they are gone,
    And so hold on when there is nothing in you
    Except the Will which says to them: 'Hold on!'

    If you can talk with crowds and keep your virtue,
    Or walk with kings - nor lose the common touch,
    If neither foes nor loving friends can hurt you,
    If all men count with you, but none too much;

    If you can fill the unforgiving minute
    With sixty seconds' worth of distance run -
    Yours is the Earth and everything that's in it,
    And - which is more - you'll be a Man my son!
    Rudyard Kipling
    Sep 9 04:38 PM | 8 Likes Like |Link to Comment
  • Dealing With Panic In Dividend Growth Investing [View article]
    Mike

    I understand. It's easy for people to hand out advice when it's not their money at stake. Sort of like how both of my sons are high school football coaches and I never ceased to be amazed at the number of professionals sitting in the bleachers that know so much more about football than any of the coaches. Those with skin in the game though, like you, me, and the fine folks here at Seeking Alpha in the Dividend Growth Investing community, know what it's like to have to go through the gamut of emotions we deal with in investing our own money.

    I agree it's easier said than done but it still can be done. Panicking is a choice. Permit me if you will to share a story. 3 weeks after I had gotten married I was out picking strawberries late one evening, it had already gotten dark enough that I had to strain to see and was trying to finish out the last row when I felt a snake bite me on the hand. I didn't see it, only felt it, but knew immediately what it was. There's a lot more to this story but I'll try to keep it to the Readers Digest Condensed version.

    I yelled for my wife, who had already stopped picking, to bring me a hoe. I still hadn't seen the snake but started chopping around in the immediate area with the hoe and after several chops saw it bounce a little when I struck it. I killed it and saw that it was a copperhead, if you're familiar with that particular snake. Even though I had been raised in the country I didn't know that much about snakes other than which ones were poisonous and which weren't. Never studied them just either killed them or chased them off.

    Anyway, my wife of 3 weeks about panicked. I took the time to put the strawberries up simply because I didn't want them to be wasted after we picked them. I know, pretty silly. I was in my truck, straight shift, that my wife did not know how to drive. So I take the dead snake, throw it in the back of the truck to verify it was poisonous in case the doctors weren't sure, and drive myself to the hospital, which was about 25 minutes away. My wife is thinking the worst, she's going to be a widow at 3 weeks.

    By the time I get to the hospital my hand is throbbing like someone is hitting it with a hammer in time with the beating of my heart. They give me a total of 4 shots, send me home, call me back to give me 2 more shots they forgot to give me, and send me home again. I lost my supper, my arm swells up to my shoulder like Popeye's arm, and the area around the snake bite dies. 3 or 4 days later I'm fine except for the hole in my hand. I jokingly say that I got snake bit and 3 weeks later got snake bit again. My wife doesn't share the humor with that comparison of getting married and really getting snake bit. But 34+ years later we're still happily married.

    Anyway, my point is that I was able to remain relatively calm and it worked out. And most of the time if we handle our investments the same way, they'll work out too. Especially if we've done our homework up front and made good selections. Not necessarily easy, takes discipline and good decisions, but still very doable. Like I said, panicking is a choice.

    Anyway, glad you like the article. Please forgive the overly long story. I tend to get carried away sometimes. Take care,

    Eddie
    Sep 8 10:17 PM | 8 Likes Like |Link to Comment
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