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Eddie Herring  

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  • 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, 2012. 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, 2012. 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, 2012. 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, 2012. 10:17 PM | 8 Likes Like |Link to Comment
  • 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
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