T. Rowe Price Group, Inc. (TROW)
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- All Comments on TROW
- General Discussion on TROW
- A Dividend-Focused Equity Portfolio Maintains Real Purchasing Power [view article]
- Opportunity Now in Franklin Templeton [view article]
- Financials ETFs: Is the Credit Crisis Really Easing? [view article]
- Battling Online for Baby Boomers' Savings [view article]
- Financials Offer Patient Bulls Many Opportunities [view article]
- These Stocks Are Attractive Amidst This Selloff [view article]
- Cash-Rich Companies: Watch Out for the Siren’s Song [view article]
- One Page Barron's Summary [view article]
Recent TROW Articles
- A Dividend-Focused Equity Portfolio Maintains Real Purchasing Power
- Opportunity Now in Franklin Templeton
- Financials ETFs: Is the Credit Crisis Really Easing?
- Battling Online for Baby Boomers' Savings
- Financials Offer Patient Bulls Many Opportunities
- These Stocks Are Attractive Amidst This Selloff
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A Dividend-Focused Equity Portfolio Maintains Real Purchasing Power [view article]
own stocks that have a long history of raising dividend every year. .. I bought PAYX in 1993. .. because of the dividend raises, the yield on my original investment is 37 percent right now. ReplyA Dividend-Focused Equity Portfolio Maintains Real Purchasing Power [view article]
never owned a bond.stuck to stock.before retiring had drip plan.my app.yield-9-10%.not enough to cover the real inflation rate of the 5 basic daily needs but still good as my house is paid,no heloc ever & no debt.no world cruises or hummers either.when people finally learn that a house is not an asset but a liability they can get away from the greedy moneylenders & live a comfortable life.nothing is an asset that doesnt put mone in your pocket.anything that costs you money is a libility.a lot of people sure got fooled. ReplyA Dividend-Focused Equity Portfolio Maintains Real Purchasing Power [view article]
This research was done twenty years ago and the results were the same. Holding dividend paying stocks were compounded at a much higher rate than "growth" portfolios. Bond investors have lost value over the past fifty, one hundred or more years. Inflation will eat up a bond portfolio, regardless who is doing the "managing." Replyvestor
Opportunity Now in Franklin Templeton [view article]
David,Well said regarding TROW. I consider buying their shares a better long-term buy than any of their funds. TROW's fees are based on a growing AUM for 401k's, which should continue to grow as pensions are replaced. Also, TROW is building out branches in high net worth locations, which suggests expansion into new business lines. Stable growing dividend. Waiting.
Cheers, Reply
Opportunity Now in Franklin Templeton [view article]
Two things to bear in mind are as follows:A. The asset management business is attractive but if you look deep in Franklin's financials you will find that they have also been in the business of securitizing car loans. However much of a sideline, I imagine that this gives the market pause at times like this.
B. I would maintain that TROW has a higher valuation NOT, as everyone assumes, because their AUM is heavy equity but rather because they have a strong presence in the defined contribution pension (401 K) market which provides more assured cash flows at times like these. Franklin is comparatively weak in that area. Where are the Franklin-Templeton target date funds? Meanwhile the place where Franklin is quite strong happens to be overseas and particularly Europe --speaking in terms of not only invested AUM but more the sourcing of the AUM (i.e. the country where the client is domiciled). Everyone sees "overseas" as sexy but Europeans are notoriously fickle about their mutual fund or "investment trust" holdings. They dump their shares at the slightest sign of a downturn and are far, far less inclined than Americans to buy and hold. This is why so-called structured investment products are so popular in Europe. In any event, the point is that TROW's domestic DC plan strength looks good at the moment while BEN's asset gathering in foreign lands looks like a source of weakness at the moment.
Thanks for your thoughtful piece. Reply
Financials ETFs: Is the Credit Crisis Really Easing? [view article]
I can't disagree that companies--financial and otherwise--are beating estimates this quarter. I believe the number among reporting S&P companies is on the order of 60% beat earnings and 27% underperforming. That's a major reversal from last quarter's horrible performance by analysts.Does that mean the market is turning or does it mean that the analysts are coming closer to reality in the assessments? I don't know.
What really sunk the financials the last two quarters was the massive uncertainty about the size of the bad debt they held, starting with mortgages and going through all the derivatives, and the Fed's response to the unknown financial hazard. The BSC bailout seems to have re-assured the financial sector that the Fed will come to the rescue when there is a systemic risk. At the same time, the size of the mortgage-related debt has now generally been assessed at a half-trillion dollars--give or take--by Goldman-Sachs and others. More importantly, it gives investors confidence (possibly unwarranted) that they can see the end of writeoffs since about half of that sum has already been written down.
But is the assessment correct?? Will the bad mortgage number get worse? Will there be a spillover into non-mortgage derivatives? Will the separate, but real, decline in consumer purchasing power from food and fuel inflation and stricter lending prevent the expansion of credit?
I dunno, but I won't be the first on the financials bandwagon.
Reply
Pseudonym
Financials ETFs: Is the Credit Crisis Really Easing? [view article]
I say people are sheep and they are scared.I say we will see big swings of emotions which will be evident in stock prices.
I say the days of borrowing to live a life style you can't afford with your income are over.
I say that if the day comes when people turn to their last bastion of wealth (401k money) to "keep up with the Joneses" or make their payment, the stock market is in real trouble.
Suzy Ortman (spelling?) was on Larry King and she's been dealing with callers asking if it's a good idea to tap IRA/401k money in order to stave off bankruptcy...
Her answer was no, but I have a feeling there are a lot of desperate people looking for money... Reply
Financials ETFs: Is the Credit Crisis Really Easing? [view article]
I read in today's (4/28/08) Financial Times that, for the 1st quarter 2008, 24 out of the top 25 mutual funds had an outflow of funds (to the tune of $100 billion). Only Pimco's bond fund (among the top 25) showed an inflow. What do you say to that? ReplyEditors
General Discussion on TROW
Is this a buy or a sell? ReplyBattling Online for Baby Boomers' Savings [view article]
It does make sense to rollover to your own IRA account after leaving an old job or employer. It's a big decision. RetirementThink.com can help with questions on IRA accounts and direct rollovers. ReplyBattling Online for Baby Boomers' Savings [view article]
You're on to something. I've been watching and researching the web for a business I can trust to manage my retirement monies with low expenses, healthy culture and history and top online educational tools. I retired early four years ago and live on a defined benefit pension, social security and savings 50% of which is invested. When I rolled over my 401K, I chose to self-direct it in a Scottrade Traditional IRA. (Having some fun and anxious moments here.) But I intend to go more passive in 3 years and will then see who comes out on top. Currently, TROW and Fidelity are one and two and Vanguard is a distant third. Time will tell. What does everyone else think? Replyzone
Financials Offer Patient Bulls Many Opportunities [view article]
Funny to read this today "Just about the only stock I’m more bullish on than Bank of America is Bear Stearns (BSC). The reason is that the risk/reward appears to be exponentially higher in this stock. If you are not building a large line in Bear Stearns then you should probably find a good fund to park your money in and go play some golf. Seriously!" Seriously? ;o)Reply
Financials Offer Patient Bulls Many Opportunities [view article]
Some classic losers here, starting with Bear Stearns, and including Citigroup and Blackstone, all paving the way to the poor house. ReplyFinancials Offer Patient Bulls Many Opportunities [view article]
Start learning to use apostrophies to indicate possession, e.g., this stock's. ReplyFinancials Offer Patient Bulls Many Opportunities [view article]
Earnings will be fine once the major losses are done being written off, which is presumably already priced into the stock at this point, no?With all of the doomsdaying nellies out there, I would say that it is more than factored in.
Prospector -
I am new to the market (investing wise). I could not see a better time to buy into financials. I still see no better time over the next three months. Although I am breaking even on everything right now (which says a lot since I started buying in early November), I see that in the next 8 - 16 months I am going to be very happy I put my money where I thought it should go. I have only fallen once when I chose not to buy ETFC at 2.08. I have had C on a watch for awhile and I will continue to watch. Unfortunately, I still think C has a huge write down coming, or a couple. I am going to wait until the next beating (or two), then buy.
One thing to remember is that we have an election year and the fear mongering in the media is going to be many fold. The economy, in the eyes of the media, is going to be the worst in decades for the time until at least late November, then the party that wins will decide how quickly the market will turn around. If the naysayers win, well, it might be May of 2009 before we see beauty in our current investments. If the yeahsayers win, well, probably beginning right away and a banner Christmas (compared to this last one) will be had, sending confidence through the market. Either way, does it matter? Doubling your money (or even quadrupling it) is no losing game in a few months over a one year investment.
Agreed . . . putting all disposable money into the market when I get it. Oooops, there goes the retail sector.
Cheers Reply