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BigIslandBum

BigIslandBum
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Latest comments  |  Highest rated
  • Debunking The 'Dividends Don't Add Shareholder Value' Myth [View article]
    And if you only eat half of your remaining food each meal, you'll never have to buy groceries again.

    Meanwhile back on planet reality...
    Mar 13, 2014. 09:26 PM | 24 Likes Like |Link to Comment
  • How To Retire At 30! [View article]
    Read more carefully. They live on $25K but don't qualify for health insurance subsidy because their income is $80K. It may be foreign to most in our society but your actual expenses should be something less than your income.
    Jan 29, 2014. 08:32 PM | 20 Likes Like |Link to Comment
  • Valuations, Goals And The Stock Selection Process [View article]
    Expanding into articles from a strong base in the blogosphere should drive the bulk of Chowder's 2015 performance; while two fingered hunt-and-peck typing will be near term headwinds. We believe the Chowder's exemplary stewardship will continue to deliver quality experience-backed knowledge to support his wide common-sense moat.

    Great article Chowder, keep them coming!
    Dec 10, 2014. 01:03 AM | 13 Likes Like |Link to Comment
  • Why Selling A Few Shares Is Not The Same As Getting A Dividend [View article]
    @Pompano Frog

    "Paying dividends is enormously tax inefficient."

    The problem with generalizations is that they are generally wrong. Tax efficiency is based on the financial DNA of the individual. I can rake in 72.5K of dividends, roll over 20K of IRA money into a Roth and pay $0 federal tax. Seems pretty tax efficient to me.
    May 9, 2014. 02:32 PM | 12 Likes Like |Link to Comment
  • How Much 'Extra' Return Are You Getting If You Reinvest Dividends? [View article]
    FWIW, had he reinvested dividends since 1988, the KO position would be somewhere around 711 million shares worth nearly $30 billion.
    Jan 30, 2015. 01:56 AM | 8 Likes Like |Link to Comment
  • How Much 'Extra' Return Are You Getting If You Reinvest Dividends? [View article]
    It is reported Buffett made his KO purchase in 1988 with over $1 billion. KO traded between $37 and $44 in 1988. $1 billion / $40 = 25 million shares. KO has split 2:1 four times since 1988 which means those 25 million shares would be 400 million shares today... which is exactly what is in the Berkshire portfolio.
    Jan 30, 2015. 01:24 AM | 8 Likes Like |Link to Comment
  • Is The Bear About To Maul The Bull? Here's How We're Investing [View article]
    "Credit cards are very rarely used and always are paid off immediately."

    I prefer the opposite of "very rarely". I use my CC as much as possible and pay it off every month so there is no interest. I get multiple free airline tickets every year, what's not to like!

    I could have paid off the mortgage but the dividends from investing the cash more than pays for the mortgage and are growing at > 10% per year.
    Jun 25, 2014. 02:38 PM | 8 Likes Like |Link to Comment
  • I Love My 'Magic Pants' And My Partners Wear Them Proudly [View article]
    "It'll be comical if the trendy DGI crowd suffers the same fate as the trendy Nifty Fifty crowd in the 1960s/1970s."

    Wishing ill will on others because they invest differently than you? I hope you can turn your malevolence into benevolence someday. Best of luck in your investing and life.
    Mar 20, 2014. 05:09 PM | 8 Likes Like |Link to Comment
  • Dollar Cost Averaging: Viable For Individual Stock Portfolios? [View article]
    " I can't wait until I am 50 in twenty years"

    As someone who is just over a year away from the big 50, I'd recommend savoring your youth!
    Aug 21, 2013. 02:40 PM | 8 Likes Like |Link to Comment
  • Mr. Valuation Disagrees With Henry Blodget: 'It's A Market Of Stocks' Is Not A Meaningless Phrase [View article]
    Clay King: "...fighting the trend and the fed is a losers game......unless one is truly a long term investor."

    Chuck used "long-term" 23 times in the article, it's pretty safe to assume that's the crux of his argument.
    Apr 16, 2015. 09:08 PM | 7 Likes Like |Link to Comment
  • Dividend Growth Investing: Creating Your Own Dividend By Selling Shares (Part 1) [View article]
    "The only problem is deciding what is a real rate of inflation."

    Your rate of inflation isn't determined by the government, it is determined by the choices you make.
    May 20, 2014. 09:46 PM | 7 Likes Like |Link to Comment
  • Retired Investors - How Do You Manage Risk? [View article]
    You might be a Dividend Growth Investor...

    If you spend Christmas Eve perusing SA articles
    Dec 24, 2012. 11:20 AM | 7 Likes Like |Link to Comment
  • How Much 'Extra' Return Are You Getting If You Reinvest Dividends? [View article]
    AuCoaster,

    "But, that value includes the retained earnings. If the company keeps the dividend instead of paying it, the company will be worth more, and be better able to grow."

    The company will have more book value but as we all know, book value is only one of many variables that go into the price of a stock. In my opinion, irrational human behavior effects prices with more magnitude and frequency than book value.

    Whether the company will "be better able to grow" is based on the assumption that every CEO always allocates capital efficiently. There is only one Berkshire Hathaway for a reason.

    This oft-repeated academic argument only holds up in a vacuum festooned with stickers stating "all else being equal", but in reality, it never is.
    Mar 17, 2015. 09:02 PM | 6 Likes Like |Link to Comment
  • Debunking The 'Dividends Don't Add Shareholder Value' Myth [View article]
    I'm guessing you don't do your own taxes. Taxes on dividends are very dependent on total income and the sources of income. A married couple can earn $92.5K in dividends and pay 0 federal tax if it's their only source of income (using standard deduction).
    Mar 14, 2014. 10:41 PM | 6 Likes Like |Link to Comment
  • The Triple Margin Of Safety Approach To Dividend Investing [View article]
    " I agree with almost everything Chuck says. The rest of the time, I'm content to be wrong. ;)"

    Truth! That should be on a t-shirt.
    Dec 17, 2013. 02:15 PM | 6 Likes Like |Link to Comment
COMMENTS STATS
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