Dividend Investing Is Not Only About The Dividend [View article]
Great article Tim.
The real tests are made in the crucible. When I see companies that increased their dividends in 2008-2010 I am impressed more than 10 years of growth during complacent times. And believe me, there are plenty of great companies that meet this criteria.
On a side note, if people do not respect your opinions then why should you respect theirs? And certainly not when they present them so rudely. You rarely lose your cool even with your large exposure. These people must be insecure about their investments or it wouldn't push their buttons so much.
5 Reasons To Own An Overvalued Stock [View article]
Bravo
Not everyone is so fortunate to have large reservoirs of cash to invest in the markets. People often need to pay for school with what money that have. It can take years to build up enough money to invest in the stock market. It is easy for people inheriting a lot of money or have backers to start out investing thousands of dollars and collecting big dividends but for most people it is not that way.
5 Reasons To Own An Overvalued Stock [View article]
I would add one more reason to the list that I have learned the hard way.
I figured I could sell these great companies after making 20% or 30% and then go back in at the dip and pick up where I left off. Much easier said than done. Most of the time you do not get back in, either by trying to pick bottoms, sheer forgetfulness or the stock does not dip (ITW is my most recent example). I have decided to give up this strategy and I am going to hold if I believe in the company and ride the waves.
Why Wells Fargo Is Buffett's Largest Bank Investment [View article]
Retired, I am sure he hasn't. He is actually an awful investor and usually has no idea what he is talking about. I never invest in banks personally. I don't trust them.
Why Dividend Investors Do Not Have To Worry About A Bubble [View article]
Tim I agree completely.
And I do not think there is a bubble. In fact I think we are years from a dividend bubble, maybe even decades, and by then we all will have benefited plenty. There are so many non-dividend payers, risky, poorly valued stocks in the market that people have no business investing in. There is literally trillions of dollars just waiting to become "smarter" and move into these mega caps. I believe the new trend is dividends and all of your strategies are going to have a revival over the next 20 years.
Why Averaging Down Is A Bad Investment Strategy [View article]
Dr K
I think what you mean is Doubling Down, not averaging down. Doubling down is buying your position again at a lower price. Averaging down is setting a target price and easing your way into it expecting to pay some more and some less than that target. That saves you from losing more if you go in heavy from the start. It is a hedge. Doubling down is adding another 100% to your original investment to try and make up losses. This is not averaging down. When your plan from the start is to execute a third of a position at three lower prices that is smart. It protects from devastating losses and if the stock does turn around at least you got 1/3 or 2/3 or your order filled. This is not doubling down as is the topic of the article.
Why Averaging Down Is A Bad Investment Strategy [View article]
Kris, I appreciate the effort in the article but you are ignoring a simple fundamental fact that flaws your entire approach. Aside from the fact that it is easy to find losers in any strategy as examples, buying a full position from the start would result in VASTLY greater losses. The entire point of averaging down is to hedge yourself from rushing into a company full speed, only to watch your entire position go to shreds. Averaging down softens the blow on losing positions, especially value traps.
What you said about dividend culture is spot on. People like consistency above all else. There are numerous companies I can think of that have increased dividends consistently for over 50 years. I can say that makes me feel much more secure in my investments, and I always look for that trend. A slashed dividend, even for one year, raises a red flag for me.
Not Learning From Investing Mistakes Is The Biggest Mistake Of All [View article]
Thanks obieephyhm, I appreciate it.
By no means was this article meant to judge between investing and trading, only the dangers of combining the two.
There are very successful traders and very successful investors. I believe this is related to each person's temperament. I enjoyed trading, but at the same time it drove me crazy. I like living a low stress, peaceful life and I decided short-term trading was not for me. Some people thrive on the rush and that is great. Whatever feels right go for it.
Spain And Italy's Faustian Bargain With Germany [View article]
James, love the article.
I have a question. Why have you decided to go long SDS and VXX with their atrocious tracking errors? Wouldn't you be better off shorting some of the ultra leveraged ETFs or the indexes themselves? Maybe buying puts on them to go against the tracking error grain.
General Mills Is A Top Choice For Risk-Averse Investors [View article]
3 Ways To Overcome Failure With Long-Term Investing [View article]
Microsoft And Apple Did Build 'That' [View article]
Dividend Investing Is Not Only About The Dividend [View article]
The real tests are made in the crucible. When I see companies that increased their dividends in 2008-2010 I am impressed more than 10 years of growth during complacent times. And believe me, there are plenty of great companies that meet this criteria.
On a side note, if people do not respect your opinions then why should you respect theirs? And certainly not when they present them so rudely. You rarely lose your cool even with your large exposure. These people must be insecure about their investments or it wouldn't push their buttons so much.
5 Reasons To Own An Overvalued Stock [View article]
Not everyone is so fortunate to have large reservoirs of cash to invest in the markets. People often need to pay for school with what money that have. It can take years to build up enough money to invest in the stock market. It is easy for people inheriting a lot of money or have backers to start out investing thousands of dollars and collecting big dividends but for most people it is not that way.
5 Reasons To Own An Overvalued Stock [View article]
I figured I could sell these great companies after making 20% or 30% and then go back in at the dip and pick up where I left off. Much easier said than done. Most of the time you do not get back in, either by trying to pick bottoms, sheer forgetfulness or the stock does not dip (ITW is my most recent example). I have decided to give up this strategy and I am going to hold if I believe in the company and ride the waves.
Why Wells Fargo Is Buffett's Largest Bank Investment [View article]
Why Wells Fargo Is Buffett's Largest Bank Investment [View article]
Certainly agree with this statement. He picked a great one out of a difficult industry. Much easier to pick stables than financials, at least lately.
My friend works at Wells Fargo and always tells me it is the most solid financial company in the country.
Why Dividend Investors Do Not Have To Worry About A Bubble [View article]
And I do not think there is a bubble. In fact I think we are years from a dividend bubble, maybe even decades, and by then we all will have benefited plenty. There are so many non-dividend payers, risky, poorly valued stocks in the market that people have no business investing in. There is literally trillions of dollars just waiting to become "smarter" and move into these mega caps. I believe the new trend is dividends and all of your strategies are going to have a revival over the next 20 years.
Why Averaging Down Is A Bad Investment Strategy [View article]
I think what you mean is Doubling Down, not averaging down. Doubling down is buying your position again at a lower price. Averaging down is setting a target price and easing your way into it expecting to pay some more and some less than that target. That saves you from losing more if you go in heavy from the start. It is a hedge. Doubling down is adding another 100% to your original investment to try and make up losses. This is not averaging down. When your plan from the start is to execute a third of a position at three lower prices that is smart. It protects from devastating losses and if the stock does turn around at least you got 1/3 or 2/3 or your order filled. This is not doubling down as is the topic of the article.
Why Averaging Down Is A Bad Investment Strategy [View article]
When Dividends Beat Stock Buybacks [View article]
What you said about dividend culture is spot on. People like consistency above all else. There are numerous companies I can think of that have increased dividends consistently for over 50 years. I can say that makes me feel much more secure in my investments, and I always look for that trend. A slashed dividend, even for one year, raises a red flag for me.
Markets: Building A Base [View article]
I too feel the same way about the market. It is going to take significantly damaging influences to bring the markets below this level of support.
Not Learning From Investing Mistakes Is The Biggest Mistake Of All [View article]
By no means was this article meant to judge between investing and trading, only the dangers of combining the two.
There are very successful traders and very successful investors. I believe this is related to each person's temperament. I enjoyed trading, but at the same time it drove me crazy. I like living a low stress, peaceful life and I decided short-term trading was not for me. Some people thrive on the rush and that is great. Whatever feels right go for it.
Spain And Italy's Faustian Bargain With Germany [View article]
I have a question. Why have you decided to go long SDS and VXX with their atrocious tracking errors? Wouldn't you be better off shorting some of the ultra leveraged ETFs or the indexes themselves? Maybe buying puts on them to go against the tracking error grain.