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  • My 30 Stocks For 30 Years: P&G Q2'15 Buy [View article]
    B&H, I love the discipline of your investment philosophy. My plan is to regularly purchase, every quarter. I expect some purchases to be higher valuation, but I'm sure I'll get my fair share of lower valuation points to. Also expect to slowly scale up my purchase amounts over time also.

    Definitely don't intend on selling any of these positions. These will form part of my estate for my kids if I have anything to say about it.
    Jun 25, 2015. 10:01 AM | 7 Likes Like |Link to Comment
  • My 30 Stocks For 30 Years: P&G Q2'15 Buy [View article]
    rijensen, I also bought in initially at $88. I've since been buying quarterly as the price has been falling. I'm not concerned about near term price direction as such. I think we'll be well reward 20 years from now.
    Jun 25, 2015. 09:58 AM | 4 Likes Like |Link to Comment
  • My 30 Stocks For 30 Years: P&G Q2'15 Buy [View article]
    myliu, that's exactly where I hope to be saying in 20 years time...
    Jun 25, 2015. 09:57 AM | 3 Likes Like |Link to Comment
  • My 30 Stocks For 30 Years: P&G Q2'15 Buy [View article]
    Day Trader, I think in your portfolio you actually need a few stable dependent stocks that are all weather performers. They generally are less volatile and less prone to large swings in price. A steady 12% long term return with minimal stress is nothing to laugh at in my opinion.
    Jun 25, 2015. 07:34 AM | 5 Likes Like |Link to Comment
  • My 30 Stocks For 30 Years: P&G Q2'15 Buy [View article]
    Jz18,

    There's a really powerful case to hold and reinvest P&G, particularly when its price doesn't move. I'll explain my logic. At current prices, P&G is trading at better then fair value. You are reinvesting in stock and buying more of the stock at a discount. Expectations for P&G still remain pretty modest. Once P&G's restructure is completed, it will be left with a set of core brands that will grow at an accelerated rate, the business will be leaner and more focussed, you may see operating margins improved. That should lead to steady price appreciation, which will turbo charge returns.

    That same formula worked out well for Philip Morris shareholders through the 90's when the stock moved sideways, or down on litigation concerns. Reinvesting the dividends actually led to outperformance of the S&P when the stock price eventually recovered, as I believe P&G 's will do in time
    Jun 25, 2015. 07:31 AM | 5 Likes Like |Link to Comment
  • My 30 Stocks For 30 Years: P&G Q2'15 Buy [View article]
    bumbulus, interesting feedback. I've actually used this title a number times for write ups of stocks that I've done for purchases of my core 30 for 30. Has never met with any issues before. Why did I think the title was appropriate? Well, I'm accumulating a fixed list of 30 stocks, not 100. It's the same set of stocks, quarter in, quarter out. P&G is one of those stocks. I've bought it this quarter. I've described above why I'm comfortable with long term (ie 30 year) accumulation of the stock and what I'm doing about it (ie, buying it), and the reasons for doing so.

    Regarding P&G articles being boring, its probably because the stock is boring, and for me that makes for great long term accumulation!
    Jun 25, 2015. 07:21 AM | 11 Likes Like |Link to Comment
  • My 30 Stocks For 30 Years: Starbucks Q2 '15 Buy [View article]
    8202371, I use a service called motif investing. It allows me to purchase 30 securities at one time for $9.95. I couldn't do what i'm doing with a traditional brokerage.
    Jun 24, 2015. 07:28 AM | Likes Like |Link to Comment
  • The Evolution Of My Approach To Dividend Income [View article]
    Very good points semi-retired. I think my strategy presupposes status quo in relation to health, income and all other things. I would reevaluate my framework if any of those things materially changes.
    Jun 23, 2015. 10:02 PM | Likes Like |Link to Comment
  • The Evolution Of My Approach To Dividend Income [View article]
    Investment Pancake,

    You are right about just looking for flat markets. Investors earn their returns in bear markets, and flat markets, these returns just get realized when the market turns upwards. The stock of last century, Phillip Morris is a great story of the power of reinvestment in tough times. If the quality of the franchise is strong, an upward rerating will turbo charge investor returns, as happened with Phillip Morris.

    Very interesting point about what is the right benchmark index. My portfolio beta is 0.8. I'm not sure that a bond fund is the right benchmark, but if I can at least match the performance of the S&P 500, I guess I'm technically doing it at lower risk.

    Thanks for your thoughts. I think ultimately my satisfaction will come in knowing that I have a high quality, all weather dividend income stream that is buffered in all conditions. The actual portfolio value and total return will just be an output of that fact.

    Best to you also.
    Jun 23, 2015. 10:00 PM | Likes Like |Link to Comment
  • My 30 Stocks For 30 Years: Starbucks Q2 '15 Buy [View article]
    2Reb,

    I confess, I'm more of a social coffee drinker, not a regular drinker like many of those who visit Starbucks. But I tell you, lines that go out the door at 8:30 am and 3pm have me convinced that this is a company that is onto something with its core offering, and the opportunities to cross sell additional product remain substantial.
    Jun 23, 2015. 09:51 PM | Likes Like |Link to Comment
  • My 30 Stocks For 30 Years: Starbucks Q2 '15 Buy [View article]
    I think Schultz is great innovator. Some concepts will fail, some will succeed, but he certainly has vision and innovation in his bones. Hard to say that for most CEO's
    Jun 22, 2015. 09:02 PM | Likes Like |Link to Comment
  • My 30 Stocks For 30 Years: Starbucks Q2 '15 Buy [View article]
    zgb952,

    Common feedback about SBUX being overvalued, I've heard that from a few people. I think its fairly valued currently, certainly no bargain. Given the size of the global coffee consumption market and Starbucks share, opportunities in China and other international markets, I'm not so sure that an $80B valuation for the company is out of whack. I guess time will tell.

    You are right about the dividend. For a retiree, there may well be better income choices. For someone who is prepared to wait, this could be a sizeable income stream eventually.
    Jun 22, 2015. 09:01 PM | Likes Like |Link to Comment
  • My 30 Stocks For 30 Years: Starbucks Q2 '15 Buy [View article]
    B&H,

    Great question. I actually went back over the last 10 years and looked at SBUX PE multiples. I'm not sure they have ever been sub, 20x earnings from what I could tell. Perhaps someone on the thread will correct me.

    According to morningstar, in 2005, SBUX was at 50x earnings, in 2010 it was at 23x earnings. Starbucks has returned 13% annually since 2005, and 28% annually since 2010. I agree that sub 20x earnings would be a great time to buy, though I'm not sure that current levels will produce unsatisfactory returns when evaluated 5, or 10 years later. I would take 13% annually hands down.

    Perhaps I'll end up being the guinea pig to let everyone else find out!
    Jun 22, 2015. 08:16 PM | 3 Likes Like |Link to Comment
  • My 30 Stocks For 30 Years: Starbucks Q2 '15 Buy [View article]
    nahcar, perhaps that's how they ultimately play food. Rather than a bunch of specialized food stores, its a set of key names brand products that get sold in starbucks locations. It will will be interesting to see how they go after this opportunity in the years ahead.
    Jun 22, 2015. 08:12 PM | 1 Like Like |Link to Comment
  • My 30 Stocks For 30 Years: Starbucks Q2 '15 Buy [View article]
    divbonanza,

    I do hope they use the experience to improve on how they better go after the food opportunity. I agree that it may not be a major loss, and sometimes innovation doesn't pan out. They should keep experimenting to see if they can crack a formula for better success in food
    Jun 22, 2015. 08:07 PM | 1 Like Like |Link to Comment
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