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Eddie Herring

 
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  • The Perfect Investment Portfolio: It's All About The Income, Right? [View article]
    Dave

    Good response and kudos to you for remaining calm and objective. What I've observed about traders (and I used to be one) is that they don't understand with DGI is that we measure to a different standard and to a different timeframe.

    Take care,

    Eddie
    Aug 7, 2012. 11:21 PM | 8 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, 2014. 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, 2014. 07:49 PM | 7 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, 2014. 10:31 PM | 7 Likes Like |Link to Comment
  • What's Your (Dividend Growth) Number?: Part 4 - Creating And Surpassing Goals [View article]
    Mike

    Very nice article. What strikes me as important, more so than just the numbers, is your comment near the beginning that we need to recognize achieving small milestones helps us continue on toward our goal of achieving larger milestones.

    It's like deciding to run a marathon when we're not necessarily a runner. If we just set out to run the 26.2 miles we'll never make it. But if we start out with say a mile, and continue adding to that over time, realizing those additions move us closer to our goal, we'll build up to that seemingly insurmountable distance.

    So it is with our own investing. We start out not sure we can do it, but continuing to keep at it, we set minor milestones, take baby steps, recognize our mistakes when we fall, get back up and continue on. Pretty soon we're getting more comfortable, more confident, and we get to the point where our goal is no longer insurmountable, but achievable. And not only achievable, we can raise the bar when we do better than we had planned and become a better overall investor.

    Congratulations on achieving your goal and best wishes to you and Roberta going forward.

    Eddie
    Jul 9, 2014. 07:53 PM | 7 Likes Like |Link to Comment
  • Warren Buffett, Berkshire Hathaway, And Dividend Growth Investing [View article]
    Retail

    Thanks for reading. Buffett is not a fan of ebitda though. Here's an exact quote from him and Charlie Munger from 2009:

    Buffett: EBITDA is nonsense.

    Munger: I don’t even like to hear the word “EBITDA”.

    Buffett: It’s basically “EBE”: “Earnings before everything.”

    Eddie
    Apr 14, 2014. 07:55 PM | 7 Likes Like |Link to Comment
  • The Positive Psychology Of Dividend Growth Investing [View article]
    BB

    I think you misunderstand this. When the stock splits 2 for 1 the stock price is halved along with the dividends unit price. For example when KO split in 2012 the dividend changed from $0.51 to $0.255. My holdings were changed in my account to reflect twice as many shares at half the price. The total value remained the same and my next dividend payment was the same in total amount. Hope this helps,

    Eddie
    Mar 20, 2014. 06:07 PM | 7 Likes Like |Link to Comment
  • My Transition To Required Minimum Distributions (RMDs) [View article]
    Miz

    Had a pastor once that had a boat named Visitation. He loved to fish and when someone would call his house looking for him they were told he was out on visitation and would get back with them when he returned.

    Eddie
    Mar 11, 2014. 10:53 PM | 7 Likes Like |Link to Comment
  • Are VYM And SDY Good Dividend Growth Investments? [View article]
    Dave

    Good forthright comparison and excellent article.

    I get that some people are better off with ETF's or an index fund. Not everyone is interested in handling their own investments.

    I also get that some people, like me, prefer to build and manage their own portfolio of dividend growth stocks, however they may be defined, and setting their own goals for that portfolio.

    What I don't get is someone who doesn't know me, doesn't know my personality, desires, goals, or investment preferences, someone totally outside my life whom I haven't invited in to my life telling me that my goals are wrong and that my method of investing is wrong.

    There are certain basic things that can be obviously and fundamentally wrong, such as selling low and buying high, but a proven methodology such as DGI, or income over return, is a matter of perspective, needs and preferences. It's a personal choice.

    The way I see it is that my goals are my goals, they're not someone else's goals. And if someone else doesn't like them, that someone else can set their own goals. And I'll continue to set my own to meet my own satisfaction. Okay, I'll get off my soapbox and stop my rant.

    Anyway, enjoyed the article, Dave. Excellent as always.

    Eddie
    Feb 25, 2014. 10:12 AM | 7 Likes Like |Link to Comment
  • These 6 Stocks Made The 'Top 40 Dividend Growth Stocks' For 7 Straight Years [View article]
    Dave

    Good examination on why these continually show up in your top 40 list. I'm long all of them except PEP. Have considered buying it but have never been able to time my (not a market timer btw) funds availability with PEP being at a point I consider it a good deal. But I can live with hitting 5 out of 6.

    Eddie
    Feb 10, 2014. 05:45 PM | 7 Likes Like |Link to Comment
  • What Happens To Dividend Growth Investing When Inflation Hits 10% [View article]
    The single most profitable/useful class I took, both high school and college, was the typing class I took in high school. I only took it because that's where the girls were and me and another guy were the only males in the class.

    As it turned out, I had an aptitude for it and that one skill helped me in every job I had throughout my career. The point being that we don't really know at the time we're taking a subject, just how helpful it may or may not be to us later on.

    There's an old Portuguese proverb that says "Live to learn and you will learn to live." One of the reasons many of us are here at SA, in my opinion, is part of our living to learn mindset even though it may not be something we're consciously pursuing as an overall objective. We may be focusing singularly on an investing topic without thinking about it in terms of life learning.

    Dr. John G. Hibben, who replaced Woodrow Wilson as President of Princeton, said,
    "Education is the ability to meet life's situations." I'm convinced that many of the secondary and post secondary institutions are not providing students the education that quote implies. I say that even though I'm a parent of two teachers and a 3rd child who is a former teacher.

    Much of that is because of our culture, not because of teachers not trying. We keep throwing money at the education issue, but I'm not convinced we're getting our money's worth.

    In my opinion, as a society we've made it a social necessity to go to college and, along with making it so easy to get loans to do so, we've opened the doors for the inflationary costs we're seeing for that education at the post secondary level. We've also placed a huge burden on those young people who have to bear that ever increasing cost.

    About 10 years ago, a company involved with a project I was managing, was trying to hire kids graduating high school to do craft work. They would provide the training and were willing to start these kids out making about $50K per year. This was in the South and would be equivalent to a much higher salary in other parts of the country. In other words, good money. Yet they were having difficulty getting any takers because all these kids were wanting to "work with a mouse."

    I don't believe every person needs to go to a 4 year college. I think into a craft job is where many are better off. And I don't mean that in a derogatory way. There are certain natural aptitudes we have and finding what those are can be to our long term benefit. There is a cost, a huge cost, to us as individuals, families, and as a society in trying to force a square peg into a round hole.

    Eddie
    Feb 7, 2014. 07:30 PM | 7 Likes Like |Link to Comment
  • What's Your (Dividend Growth) Number?: Part 2 [View article]
    "I have decided to sell all of my KMB because I heard..."

    If that's the case invest in SearsRoebuck catalogs and corncobs... It will get rough.
    Jan 7, 2014. 10:30 AM | 7 Likes Like |Link to Comment
  • New Money Is Coming Into The Market: Don't Miss The Boat [View article]
    "The world is changing. The pace of change is insanely fast compared with only twenty or thirty years ago and that pace is accelerating."

    plus ça change, plus c'est la même chose (the more things change, the more they stay the same). - Jean-Baptiste Alphonse Karr, 1849.

    "most except aapl (the perfect investment)"

    With all due respect the perfect investment does not exist.

    Eddie
    Nov 13, 2013. 10:12 PM | 7 Likes Like |Link to Comment
  • Buy And Hold Is Dead You Say? [View article]
    Jon

    I've heard them referred to as senior citizen blue chips. That's fine with me, this senior citizen likes them and will keep holding on to them.

    I'm reminded of that video, a commercial I think, of this old lady very slowly crossing a street when this red sports car convertible pulls up to the intersection. Then driver gets impatient and blows his horn at her and she takes her handbag and hits the front of his car, causing his air bag to explode in his face.

    Some of my blue chip senior stocks can still bust those trendy stocks in their face over the long term. HA!

    Eddie
    Oct 24, 2013. 09:25 PM | 7 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, 2013. 04:23 PM | 7 Likes Like |Link to Comment
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