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Big Island Bum

Big Island Bum
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  • How Dividend Reinvestments Will Increase My Cash Flow Over The Coming Year [View article]
    rhiannion,

    If you haven't read The Snowball: Warren Buffett and the Business of Life, I highly recommend it.
    Sep 2, 2015. 06:08 PM | 1 Like Like |Link to Comment
  • How Dividend Reinvestments Will Increase My Cash Flow Over The Coming Year [View article]
    The namesake Berkshire Hathaway was a textile business that he eventually had to shutdown due to lack of profitability.
    Sep 2, 2015. 03:36 PM | 2 Likes Like |Link to Comment
  • Why Coca-Cola Has Been A Better Investment Than PepsiCo [View article]
    DamnYouMarket!,

    It looks like Eli is using 9 years instead of 10. The end of 2005 to the end of 2014.

    "Coca-Cola, on the other hand, saw P/E expansion during this time period. At the end of 2005 shares were trading around 18 times earnings..."

    Using this time frame, the numbers look pretty close to what Eli states.
    Aug 29, 2015. 03:38 PM | 1 Like Like |Link to Comment
  • Why Coca-Cola Has Been A Better Investment Than PepsiCo [View article]
    DamnYouMarket!,

    Eli didn't reinvest the dividends which is likely the reason for your perceived discrepancy.
    Aug 29, 2015. 02:17 PM | 1 Like Like |Link to Comment
  • Get Your Smart Beta Here! Dividend Growth Stocks As 'Strategic Beta' Investments [View article]
    SA = seekingarguments.com
    Aug 26, 2015. 03:00 PM | 1 Like Like |Link to Comment
  • Differing Outlooks On The Market [View article]
    "I don't use limit orders, but my understanding of them is as follows.

    When the stocks hits your limit order price, it triggers a buy (or sell, as the case may be) order to be executed at the market price existing at the time."

    ************

    That describes a "stop order" - it triggers a buy/sell at market price once the stop price has been hit.

    A limit order will be executed at or below your limit price for a buy and at or above your limit price for a sell. e.g. You put in a limit order to buy XYZ at $100.00, you will not pay more than $100.00 regardless what the market price does.
    Aug 25, 2015. 08:23 PM | 1 Like Like |Link to Comment
  • 10 Dividend Growth Stocks For Your Retirement Portfolio's Aggregate Yield 4.3%: Part 2 [View article]
    Gary,

    "I like SO and have some of it, but why would anyone pay a PE of 18 for a utility returning a 4.7% yield with bonds at 6%?"

    This comment lead me to look at the last time corporate Aaa bonds were around 6% for a year or more and compare it to the yield and PE of SO. The 2002 - 2004 period seems to fit the bill. SO yield averaged 4.7% and traded at a PE between 20 and 21.
    Aug 25, 2015. 03:03 PM | 3 Likes Like |Link to Comment
  • How Much Kinder Morgan Is Too Much For A Dividend Growth Investor? - Part 2 [View article]
    gabby1945,

    That $1.73 is the TTM eps. It includes a $1.3 billion one time charge for handing off $2.5 billion of pension liabilities to two insurance companies. The company raised low end adjusted eps guidance by $0.05 to $5.65 - $5.80 per share.
    Aug 24, 2015. 01:58 AM | 1 Like Like |Link to Comment
  • Get Your Smart Beta Here! Dividend Growth Stocks As 'Strategic Beta' Investments [View article]
    I didn't say they agree, I said they aren't contrary. One describes short term behavior and the other describes long term behavior. They are two halves of a whole.
    Aug 22, 2015. 04:26 PM | Likes Like |Link to Comment
  • Get Your Smart Beta Here! Dividend Growth Stocks As 'Strategic Beta' Investments [View article]
    Correct but the "fictitious" quote is a direct quote of Buffett crediting Benjamin Graham. I think Buffett qualifies as a factual source for paraphrasing Graham.
    Aug 21, 2015. 04:11 PM | 4 Likes Like |Link to Comment
  • Get Your Smart Beta Here! Dividend Growth Stocks As 'Strategic Beta' Investments [View article]
    "Fama won the Nobel Prize in 2013 for EMH. According to the Nobel Prize website,

    In the 1960's, Eugene Fama demonstrated that stock price movements are impossible to predict in the short term and that new information affects prices almost immediately, which means that the market is efficient…. Fama's results influenced the development of index funds.

    Ironically, a co-recipient in 2013 was Robert Shiller, who believes that the market is not efficient.

    In the early 1980's, however, Robert Shiller discovered that stock prices can be predicted over a longer period, such as over the course of several years. In contrast to the dominant prescription [EMH], stock prices fluctuated much more than corporate dividends. Shiller's conclusion was therefore that the market is inefficient.

    It is interesting that both Fama and Shiller won Nobels at the same time for what are contradictory theories about the market's efficiency."

    *************

    I think they are far from contradictory theories. Fama states the market is efficient over the short term - quick to react to new information (efficient isn't the same as rational). Shiller speaks to the long term predictability of prices (rationality dominates long term). Sounds like they received an award that should have gone to Benjamin Graham: “In the short run, the market is a voting machine but in the long run, it is a weighing machine.”
    Aug 21, 2015. 03:33 PM | 10 Likes Like |Link to Comment
  • 10 Dividend Growth Stocks For Your Retirement Portfolio's Aggregate Yield 4.3%: Part 2 [View article]
    six,

    I find your theory rather confusing. You suggest:

    "From 2009-2015 it would be EXTREAMLY difficult to beat the market (SPY CAGR 16.47%)."

    A term of 6 years. Followed by:

    "But from 2000-2015 (SPY 4.25% CAGR) it would not nearly be as difficult to beat the market through individual stock selection."

    A term of 15 years. Concluding:

    "In the LONG run indexing wins..."

    Your evidence speaks otherwise.
    Aug 19, 2015. 02:28 PM | Likes Like |Link to Comment
  • 'Ye Of Little Faith' What Has It Cost You? Part 1 [View article]
    Using Yahoo Finance historical data for ^GSPC...

    12/29/95 Adj close : 615.93
    7/2/15 Adj close : 2076.78

    (2076.78 / 615.93)^(1 / 19.52) - 1 = 6.42%
    Aug 15, 2015. 03:01 AM | Likes Like |Link to Comment
  • Differing Outlooks On The Market [View article]
    Activist investor Nelson Peltz's hedge fund has reportedly picked up a 7% stake in SYY.
    Aug 14, 2015. 12:49 PM | 2 Likes Like |Link to Comment
  • 20 Dividend Growth Stocks To Buy Today For Your Retirement Portfolios: Part 1 [View article]
    tricksible,

    I downloaded the data from Yahoo Finance and imported it into a Google Spreadsheet. I wrote a custom function in Google Apps Script (basically JavaScript) to find the "all time highs" and the associated buy dates that fit Buyandhold's investing paradigm. The rest was done with basic spreadsheet cell formulas. I'm happy you found it of value :)
    Aug 10, 2015. 12:02 AM | 2 Likes Like |Link to Comment
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