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Tim McAleenan Jr.

 
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  • Procter & Gamble: History Of A Dividend Champion [View article]
    David, excellent points. It reminds me of one of Buffett's long-term holdings American Express, which had a history like this from 1968 to 1994:

    * 1968: Acquires Fireman's Fund Insurance Co., a large property and casualty insurer.

    * 1979: Hostile attempt to take over McGraw Hill Publishing fails.

    * 1981: Acquires Shearson Loeb Rhoades, a leading brokerage house. Shearson becomes an independently operated subsidiary and acquires Robinson-Humphrey, a brokerage firm; Foster & Marshall, a securities firm, and Balcor, a real estate syndicator.

    * 1982: Reorganizes under a holding company called American Express Corp.; its travel services become a wholly owned subsidiary, American Express Travel Related Services.

    * 1984: Purchases Investors Diversified Services, a financial planning company. Shearson acquires Lehman Bros. Kuhn Loeb, a brokerage firm, and becomes Shearson Lehman Bros. Holdings Inc.

    * 1985: Fireman's Fund Insurance Co. is spun off, marking the beginning of American Express' formal exit from the insurance business.

    * 1987: Optima Card is introduced, allowing cardholders to extend payments for purchases over time.

    * 1988: Shearson subsidiary acquires E.F. Hutton, becoming Shearson Lehman Hutton Inc. Shearson later discovers that Hutton came with huge hidden liabilities.

    * 1990: Shearson subsidiary reports a $900-million first-quarter loss, one of the biggest ever by a securities firm.

    * March, 1993: Retail brokerage segment of Shearson is sold to Primerica Corp.

    * Jan. 24, 1994: Plans are announced to spin off Lehman Bros. to its shareholders and the firm's employees.

    Think Buffett had any idea that stuff would come? Heck no. Find the companies with the best moats, and as time goes, observe whether it strengthens or weakens them, and adjust your portfolio accordingly.

    Very well articulated!
    Jun 20, 2012. 09:24 AM | 10 Likes Like |Link to Comment
  • Set Yourself Up To Let Compounding Work Its Magic [View article]
    Jon, brilliantly put!
    Jun 20, 2012. 08:28 AM | 1 Like Like |Link to Comment
  • If You Believe In Dividend Investing, You Should Buy Cyclical Companies, Not Consumer Staples [View article]
    While, it's scary to think about how many dollars I have sent your way reading and re-reading this comment stream.
    Jun 19, 2012. 10:45 AM | 4 Likes Like |Link to Comment
  • Set Yourself Up To Let Compounding Work Its Magic [View article]
    True, Mike. Though there was a point in time when Buffett did not have the same margin of error that he does now, and he was able to make excellent decisions in his 20s and 30s to put himself in the situation to "buy the dang thing" in his 80s. If you build up a nice emergency fund so that you won't have to sell a stock to meet needs in your personal life, and then buy-and-hold excellent companies for decades that you originally purchase at 15-18x earnings, you should do quite nicely.
    Jun 19, 2012. 10:27 AM | 7 Likes Like |Link to Comment
  • Set Yourself Up To Let Compounding Work Its Magic [View article]
    "Why? Who cares?"

    Dude, answering that question correctly is a key to long-term investment success. Microsoft has grown per share earnings from $1.04 in 2004 to ~$2.73 by the end of 2012. That's almost tripled earnings in less than a decade--for a megacap!

    The problem is when people pay 30-40x earnings for large cap companies.

    Microsoft the business has not been dead money, but Microsoft the investment has been dead money because people were paying way too much for it a decade ago.
    Jun 19, 2012. 10:23 AM | 12 Likes Like |Link to Comment
  • Set Yourself Up To Let Compounding Work Its Magic [View article]
    Sounds like you're trolling, Varan. Allright, I'll bite.

    For a non-dividend paying stock like Berkshire Hathaway, it's just that investors are currently willing to pay $123,260 more per share today than they were when Buffett took over ($123,275.00-15.00).
    Jun 18, 2012. 11:02 PM | 6 Likes Like |Link to Comment
  • The Benefit Of Patience For Income Investors [View article]
    I don't disagree with that at all. Although excellent companies do have a way of helping you out of a jam if you're patient enough. For instance, the people who paid 50x earnings for Johnson & Johnson a decade ago would have a 3-4% annual return by now. I find that exceptional, given that it's insanely foolish to pay 50x earnings for a mega-cap American company, and JNJ hasn't exactly been firing on all cylinders the past couple of years.
    Jun 17, 2012. 09:27 AM | Likes Like |Link to Comment
  • The Dividend Investors' Guide - Part VIII: How Much Growth Is Left For Household Products? [View article]
    "Energizer (ENR) and Martha Stewart (MSO) pay no dividends, which is a requirement for consideration."

    FYI, the Energizer board established a $0.40 quarterly dividend this past May.

    http://reut.rs/MwJyRa
    Jun 16, 2012. 01:17 AM | 1 Like Like |Link to Comment
  • The Benefit Of Patience For Income Investors [View article]
    Steve, I know the feeling. I have a buddy who brags about how much money he's made on Amazon. And I'm thinking, 'Watching the P/E go from 50 to 100 is not an investment strategy. It's dumb luck.' I wish him well, but I couldn't do that.

    Six Prime, it makes you wonder, doesn't it: If we, as a society, are on this decades long rejection of delayed gratification, what's next?

    And Jon, I couldn't agree more. When someone says that Cramer recommended a stock, my knee jerk response is, "Give it a week or two. That'll change."
    Jun 15, 2012. 09:40 AM | 1 Like Like |Link to Comment
  • The Benefit Of Patience For Income Investors [View article]
    I believe David Van Knapp has already called dibs on a TV show "The Dividend Hour."

    I think I'll have to settle for radio. My dad always said I have a face for it...
    Jun 15, 2012. 09:32 AM | 7 Likes Like |Link to Comment
  • The Search For Safe 4% Dividend Yields [View article]
    "And the idea is used to show that the company over the past 10 years has gone up 10x and STILL yields 4%"

    That's a bit of a misnomer. SBS does not pay regular dividends. They paid out a $2.95 special dividend this past February, and had not paid a dividend since around Christmas time 2010 before that.

    It paid out 3 dividends in 2009, 2 in 2008, 1 in 2007, 2 in 2006, and so on. It just doesn't fit my idea of safe "reliable" 4% yields, Safis.
    Jun 15, 2012. 12:15 AM | 3 Likes Like |Link to Comment
  • The Search For Safe 4% Dividend Yields [View article]
    Right, my point is that safety and 4% were the terms of the debate, and I thought US multinationals offered that. I don't think the 5.5% upfront sales loaded fund offers the same safety and reliability as say JNJ and COP. If we disagree on that, so be it.
    Jun 14, 2012. 11:21 PM | 4 Likes Like |Link to Comment
  • The Search For Safe 4% Dividend Yields [View article]
    Nope. But wouldn't it be great if they did? A lot of them made less money in 2009 than 2008.That's why I said: "Nothing is better for the long-term investor than growing earnings and dividends coupled with lower prices."
    Jun 14, 2012. 02:48 PM | 4 Likes Like |Link to Comment
  • The Search For Safe 4% Dividend Yields [View article]
    "Your talk of "Nothing is better for the long-term investor than growing earnings and dividends coupled with lower prices" hence makes little sense. Yes, maybe for non-company specific reasons that depress a share price, but why don't you go ask how investors in JCP who kept pounding shares and reinvesting dividends feel about their investment today."

    But JC Penney doesn't satisfy my requirement of growing earning and dividends coupled with lower prices. JCP earned $4.75 in 2007, then $2.54 in 2008, $1.07 in 2009, $1.59 in 2010, $0.70 in 2011. And the dividend stopped growing! Yeah, if earnings fall off a cliff, you're in trouble.
    Jun 14, 2012. 01:42 PM | 9 Likes Like |Link to Comment
  • The Search For Safe 4% Dividend Yields [View article]
    bobbob, there are generally certain dividend stocks that catch the attention of these dividend-only investors. They are the ones that grow their dividends by 7-10% annually. With the exception of maybe Kraft, I can't think of any dividend firm that investors around here own that doesn't raise its dividend.

    Well, what happens when you spend most of your time finding and then owning stocks that grow dividends by 7-10% annually? Well, either the stock price stays the same or goes down, which makes it really valuable to reinvest dividends (so you can get even more dividends!) or the price goes up by a commensurate amount to get the capital appreciation that you talk about.

    And I strongly disagree with this "invested money must grow in BOTH to be a good dividend investment." The reason the Old Philip Morris was the *BEST* American stock to own from the 1920s to 2003 was because the earnings and dividends grew by 11% on average over that time but investors actually reaped 17% annually due to the low share price of reinvestment due to the threat of lawsuits/product obsolescence. Nothing is better for the long-term investor than growing earnings and dividends coupled with lower prices.
    Jun 14, 2012. 01:08 PM | 13 Likes Like |Link to Comment
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