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Jarrod W. Jacinth

 
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  • Why You Should Consider Guns, Germs And Steel For Your Portfolio [View article]
    May 5, 2010 0.34 Dividend
    Feb 3, 2010 0.34 Dividend
    Nov 4, 2009 0.34 Dividend
    Aug 5, 2009 0.34 Dividend
    Apr 29, 2009 0.34 Dividend
    Feb 4, 2009 0.34 Dividend

    From Yahoo Finance
    Feb 27 04:52 PM | 2 Likes Like |Link to Comment
  • J.M. Smucker Needs More Balance Between Growth And Value [View article]
    AgAuMoney,

    I see it the other way. If a company is unwilling to buy it's own shares then why should I or any other investor.

    To expand I like the approach Disney is taking. They buy LucasFilms with a stock purchase. They plan on buying back the stock in a couple of years. Once they have bought the stock back they are now in a position to use the stock again to expand the company.

    Smucker is using stock to expand, then 5 years later they have bought little back. But there is a huge dividend based on the payout of 42%. just over a 2.1% yield. If we are in the low 2% yield I would expect a payout ratio in the mid to high 30's.

    It's a dog chasing its tail scenario. Smuckers uses shares to buy a company. The payout is too high to buyback shares. The price is too high so the shares that are bought do not go as far. Smucker sees another company to acquire so they use more shares to buy it. I just do not see the balance. I see a possible snow ball effect.
    Jun 6 10:43 AM | Likes Like |Link to Comment
  • Footsteps Of Buffett Retirement Portfolio: Time For A Correction [View article]
    Kenneth12,

    Thank you for the kind words. I did a write up of MPC and PSX which came in a close second, both of which you can find below.

    MPC:http://seekingalpha.co...

    PSX: http://seekingalpha.co...
    Jun 2 09:20 PM | Likes Like |Link to Comment
  • Footsteps Of Buffett Retirement Portfolio: Time For A Correction [View article]
    LOL, she didn't send you to bed without supper did she?
    Jun 2 09:16 PM | 2 Likes Like |Link to Comment
  • Footsteps Of Buffett Retirement Portfolio: Time For A Correction [View article]
    Old Folks,

    Lets say you invest the $4000.00 with the 5% yield. you get your $200.00 a year yes. Lets say you keep that investment and do not add or sell to it.

    Translating it into solid payments you have your $200.00 dividend. The company you invested in increases dividends annually at 7.5% a year. So in year two you will get $215.00, $231.13 (third year), $248.46 (fourth year).

    The dividend payment will double every 10 years at this rate. So after 10 years your yield on cost will be 10% or $400.00. However, to a person looking at that stock in ten years, they will only see a 5% yield as the stock price is greatly tethered to it's price and the price increased in correlation to the dividend.

    The dividend increases and stock price increases so it looks like the yield stays the same.

    Hope this helps,

    Jarrod
    Jun 2 02:47 PM | 1 Like Like |Link to Comment
  • Footsteps Of Buffett Retirement Portfolio: Time For A Correction [View article]
    Fred,

    I'm not sure you are understanding the premise behind how my portfolio, yes real portfolio, in real USD is set up. First off it is based on dividend growth. Companies that have and will likely continue to increase dividends over time. At an annualized dividend increase of 7.5%, dividends should double every ten years. I'm in my mid-thirties, so I have 30 years to get the dividends to grow to where I need them by time I retire.

    I feel that this is safer as many retirees that have commented on retirement are chasing yield and putting their principal at risk. With this strategy I expect the yield to come to me.

    This is where the Buffet part comes into action. He uses the growing dividends from his top holdings to pay for further acquisitions. So to answer your questions.

    1) It does not matter. Many portfolio series' articles are based on a amount of principle only someone who has saved for many years can obtain. I want to demonstrate how with even a small amount of principal any investor, even someone with $500.00 to their name can start. What type of account they decides to open is their decision and should be based on their tax situation.

    2) Yes this is my portfolio with my real reinvested dividends. Again, I plan to exhibit how reinvesting growing dividends produces wealth.

    3) No benchmark comparison. Why? I do not want to see the price of stocks to go up as I am reinvesting dividends I want as many shares as possible. Dividends payments are based on shares not yield. This is why I am showcasing the growth of shares.

    4) As I said in the intro I will reassess what I will be able to contribute on a yearly basis, not monthly. Again the idea is to show a young investor or someone with little capital how even a small amount over a long time can build wealth. The idea of contributing a set amount is silly. Contribute what you can when you can so you can still put food on the table and a roof over your head.

    5) I do not plan of keeping track like Mr. Buffett. The only connection to Mr. Buffet is the philosophy of multi-decade investing and using the growing dividends to fund more investments. I have altered it to reinvesting the dividends as a person who may have little capital cannot make investing a full time job.

    Bottom Line - This exercise if you will, is to demonstrate that time is your number one asset when investing. The amount of capital that you allocate to the account is second. People see a short term (year or two) shift in the market and think that is how the market will act for the long term. The market will go up and down, the long term investor needs to balance the portfolio to accommodate for both of these phenomenon.

    All the Best,

    Jarrod
    Jun 2 12:36 PM | 5 Likes Like |Link to Comment
  • Footsteps Of Buffett Retirement Portfolio: Time For A Correction [View article]
    Fred,

    The introduction should be able to answer most of your questions.

    http://seekingalpha.co...
    Jun 1 08:00 PM | 1 Like Like |Link to Comment
  • Footsteps Of Buffett Retirement Portfolio: Time For A Correction [View article]
    We are only five months into the year. The S&P 500 is already up 14.34% ytd. The annualized average is only 9.75%. We should reasonably expect a correction for a couple of months.
    Jun 1 02:20 PM | 4 Likes Like |Link to Comment
  • Slow And Steady Wins The Race With This Retailer [View article]
    Mwaster,

    As I have mentioned in many of my posts.One valuation that is used by Benjamin Graham is that an investor should not pay more than 25 times the average earnings of the past 7 years.

    25 may seem excessive, however I have written about companies that are currently priced over this valuation.
    Jun 1 11:19 AM | Likes Like |Link to Comment
  • Wait For Occidental Petroleum's Plans Before Jumping In [View article]
    Thank you for pointing this out. It was an error on my part. I have submitted a correction.
    May 30 01:13 PM | Likes Like |Link to Comment
  • Should You Feed Your Portfolio With This Food Maker? [View article]
    Dave,

    Yes if you already own it there is no reason to sell. At this point there are other opprotunities out there to buy into.

    Jarrod
    May 27 02:07 PM | Likes Like |Link to Comment
  • Benjamin Graham's Rules For The Common Stock Component: Marathon Petroleum Corporation [View article]
    MPC fails 3,4, and 5 as it is a spin off and does not have the stand alone record. If we account for Marathon Oil prior to the spin off it passes.
    May 25 11:26 PM | Likes Like |Link to Comment
  • Benjamin Graham's Rules For The Common Stock Component: Marathon Petroleum Corporation [View article]
    David,

    Thank You for your comment. This was brought to my attention and will be the last with this template. My apologies.

    My goal in this series of articles is to take a set framework and assess a stock based on a common denominator to objectively investigate a stock.

    I find that many articles found on the internet are looked at with varying frameworks. In many cases the same company is looked at various ways from the same analyst. This leads me to believe that the author is trying to, in a way convince themselves and others a stock is a good pick by making an argument for a conclusion they have already made.

    In a world where trading is more popular than investing; it is difficult to relay a message that analyzing a stock, even based on a time-proven framework is something that works in today's world.

    All the Best,

    Jarrod
    May 24 10:34 AM | Likes Like |Link to Comment
  • Price Volatility: Broken Windows And Activist Investors [View article]
    I am trying to explain a phenomenon that occurs. This past week we saw Sony increase by up to 10% after Daniel Loeb announces a stake in the company.

    We know that Sony has issue with product lines (XBox and iPod). Mr. Loeb makes an announcement and the stock jumps. Nothing fundamentally has changed yet, simply some one coming and saying I'm going to fix Sony (by splitting it up).

    Investors can certainly sell their shares after a price jump. But what happens if the prices go up after some one comes in and announces they will fix the company, but nothing happens then what?

    I was trying to connect the dots for some investors as to why some stocks behave in such a manner by comparing it to an empirically proven social phenomenon.

    Jarrod
    May 19 08:16 PM | Likes Like |Link to Comment
  • Benjamin Graham's Rules For The Common Stock Component: National Oilwell Varco [View article]
    A P/E of 25 averaged for EPS of the past 7 years.
    May 17 06:48 PM | Likes Like |Link to Comment
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