As Benjamin Graham says in his book, The Intelligent Investor first published in 1949 and listed by Warren Buffett as "By far the best book on investing ever written", "Basically, price fluctuations have only one significant meaning for the true investor. They provide him with an opportunity to buy wisely when prices fall sharply and to sell wisely when they advance a great deal. At other times he will do better if he forgets about the stock market and pays attention to his dividend returns and to the operating results of his companies".
Every time I see a good stable company that has its price fall sharply, I go to this page in Graham's book and re-read it before doing anything.
It hasn't gone unnoticed by beverage companies that an estimated 20% of Americans know they should drink more water, but don't like the taste. With names likes Fruitwater, Vitaminwater, and Smartwater - companies including Coca-Cola (KO), PepsiCo (PEP), and Kraft Food Group (KRFT) plan to take advantage of this growing trend with new products to help drive up sales. The consumer love affair with flavored water also sets up nicely for SodaStream (SODA). [View news story]
Tell me where in the medical literature is a double blind study on the need for 20% of the population to drink more water? This is a myth associated with bottled water companies and the uninformed.
In my practice, the great problem is too much water in patients with heart failure, dilution of sodium or hyponatremia and dizziness and falling especially in the elderly. Maybe we should be warning people that the earth is flat and sailing out too far to sea will cause them to fall off the edge of the earth.
Sell Yum, Buy Clorox On Bird Flu Woes [View article]
Thanks Kyle for the follow up. I understand your concern.
During the last bird flu scare, the US government spent millions producing, stockpiling, and eventually dumping millions of doses of bird flu vaccine.
Even with these changes in the virus, I do not believe it will be enough of a threat of a pandemic to warrant that kind of investment and if asked (no one asks my opinion) I would suggest spending that money on other more worthy projects.
Sell Yum, Buy Clorox On Bird Flu Woes [View article]
As a veterinarian and physician interested in zoonotic diseases (diseases transmissible from animals to man), it can be noted that influenza in swine (not true swine influenza) is much more contagious to people than avian influenza. Generally, those infected with avian influenza are closely handling or living with poultry, and when it affects humans, it usually affects certain households, with the husband, his brothers and family infected, leaving the wife and her family unaffected. A genetic predisposition seems to be responsible but just what that predisposition is no one knows.
When I read that the source of a new influenza is from poultry sources, I am much less inclined to think of an upcoming pandemic.
Want To Play Monopoly With A Utility? Play With Hawaiian Electric Industries [View article]
I am simply discussing the inability of the Hawaii State Government to run any program properly. Hawaii, the third highest taxed residents of any state, the administration of our state cannot provide basic governmental services such as good schools, good roads, and properly fund necessary retirement programs. What makes you think they can run a utility company better than HE? It is obvious that you think government can run any program but I have news for you. Our state will not be able to pay pensions and medical benefits to our state retirees within 10 years. Is that who you really would want running your power company?
Want To Play Monopoly With A Utility? Play With Hawaiian Electric Industries [View article]
Have you recently been to Hawaii? We have the worst rated schools in the nation, roads that would be an embarrassment to third world countries, massively underfunded pension and medical plans for state retirees, a new rail system deep in trouble, the third highest state taxes and the most anti business legislation in the country. God help us if the state takes over HE.
236,000 New Jobs, Unemployment Rate Falls to 7.7% [View article]
When looking at the report, 102,000 jobs were from "birth/death" adjustment, 20,000 extras for the motion picture industry, 16,000 temporary jobs, and 18,000 for bars and restaurants. Motion picture extras and temporary hires are temporary, and bar and restaurant hires are often at minimum wage or less. I see this as a terrible jobs report. What am I missing?
Did you notice that 102,000 jobs were from the BEA "birth/death" guessed adjustments, 18,000 from Bars and Restaurants, 20,000 from motion picture "extras" and 16,000 were temporary hires. Further the participation rate dropped from 63.6% to 63.5% and taxes including payroll taxes, dividend taxes and if you notice from our state legislators, various taxes are being increased. Add the false CPI of around 2% verses the pre 1990 calculation of inflation nearly 7% give a real rosy future to our economy. I am not an economist or a director of undergraduate education for economics for a university, but I would not call this a solid employment report.
Historical Tax Rates Provide Clarity [View article]
I have read Muolo's comments many times and cannot say that I disagree with much of it. The problem is that he does not discuss the government spending and waste. Here in Honolulu, the federal government rents entire buildings at market rates with 30 year leases but uses less than 10% of the building.
As a previous commanding officer in Viet Nam, responsible for a budget, when there was money left in my budget at the end of the year, I was ordered by the Colonel to spend all the money and submit a budget 10% higher for the next year.
After my "retirement from private practice" as primary care physician, I worked at one of the clinics at the one of the military bases here in Hawaii. When in private practice, my partner and I cared for the same number of patients 8 primary care physicians, 3 flight surgeons, 3 pediatricians, and 3 administrative physicians cared for on the base. The two of us had 19 employees and the clinic for the government had 250.
In Hawaii, if a family of 4 makes less than 59,999 per year are eligible for full medical coverage including all prescriptions, food stamps, school meals, school bus rides, and of course, earned income tax rebates.
Maybe we should consider spending on programs, government, and military waste as places to look for savings. They are easy to find.
Death Of The Dividend Coming December 31? [View article]
The author reports a 23% increase in taxes if the rate of taxes for dividends increases from 15% to 38.6%. My calculation is 38.6% divided by 15% equals a 257% increase in taxes on dividends. I would be happy with a 3.9% raise.
Maybe you should look at HCOM (Hawaiian Telecom) which, for years, was the only game in town here in Hawaii. Their continued very poor at home service, extremely poor customer relationship when called, and their continued inability and unwillingness to correct obviously incorrect billing by their union employees have caused consumers to leave in droves. That, along with continued union problems, threats of strikes, and unreasonable demands have ruined the company. These workers are some of the highest paid in Hawaii and the least responsive to customers. Do not be surprised if this company is next in line to fold.
Racing To Beat The Clock On The Dividend Cliff [View article]
Those of us that are retired, played by the rules, saved, invested in dividend paying stocks for our income now will see that income diminished. Where is the guarantee by Obama in virtually every speech he gave that 98% of us in the middle class will not see a tax increase?
Want To Argue About Capital Gains And Dividend Tax Rates? Who Doesn't? [View article]
As a 68 year old recent retiree with my only income being from dividends (no I do not take Social Security yet), I and many of my friends are extremely concerned about the increase in taxes.
Yesterday I visited a 100,00 square foot building here in Honolulu completely rented by the federal government with one office of 5000 square feet being used. The remainder is empty.
Here in Hawaii, all government pensions and benefits including complete medical care for the retiree and family are tax free. Private pensions are taxed at the going rate.
Has Linn Energy Finally Bottomed? [View article]
Every time I see a good stable company that has its price fall sharply, I go to this page in Graham's book and re-read it before doing anything.
It hasn't gone unnoticed by beverage companies that an estimated 20% of Americans know they should drink more water, but don't like the taste. With names likes Fruitwater, Vitaminwater, and Smartwater - companies including Coca-Cola (KO), PepsiCo (PEP), and Kraft Food Group (KRFT) plan to take advantage of this growing trend with new products to help drive up sales. The consumer love affair with flavored water also sets up nicely for SodaStream (SODA). [View news story]
In my practice, the great problem is too much water in patients with heart failure, dilution of sodium or hyponatremia and dizziness and falling especially in the elderly. Maybe we should be warning people that the earth is flat and sailing out too far to sea will cause them to fall off the edge of the earth.
Dr. Johnson
Sell Yum, Buy Clorox On Bird Flu Woes [View article]
During the last bird flu scare, the US government spent millions producing, stockpiling, and eventually dumping millions of doses of bird flu vaccine.
Even with these changes in the virus, I do not believe it will be enough of a threat of a pandemic to warrant that kind of investment and if asked (no one asks my opinion) I would suggest spending that money on other more worthy projects.
Sell Yum, Buy Clorox On Bird Flu Woes [View article]
When I read that the source of a new influenza is from poultry sources, I am much less inclined to think of an upcoming pandemic.
Thanks for the great article.
Want To Play Monopoly With A Utility? Play With Hawaiian Electric Industries [View article]
Want To Play Monopoly With A Utility? Play With Hawaiian Electric Industries [View article]
236,000 New Jobs, Unemployment Rate Falls to 7.7% [View article]
I see this as a terrible jobs report. What am I missing?
A Solid Employment Report [View article]
I am not an economist or a director of undergraduate education for economics for a university, but I would not call this a solid employment report.
Historical Tax Rates Provide Clarity [View article]
As a previous commanding officer in Viet Nam, responsible for a budget, when there was money left in my budget at the end of the year, I was ordered by the Colonel to spend all the money and submit a budget 10% higher for the next year.
After my "retirement from private practice" as primary care physician, I worked at one of the clinics at the one of the military bases here in Hawaii. When in private practice, my partner and I cared for the same number of patients 8 primary care physicians, 3 flight surgeons, 3 pediatricians, and 3 administrative physicians cared for on the base. The two of us had 19 employees and the clinic for the government had 250.
In Hawaii, if a family of 4 makes less than 59,999 per year are eligible for full medical coverage including all prescriptions, food stamps, school meals, school bus rides, and of course, earned income tax rebates.
Maybe we should consider spending on programs, government, and military waste as places to look for savings. They are easy to find.
Death Of The Dividend Coming December 31? [View article]
Show me how this is incorrect.
Union Troubles Could Hurt Verizon [View article]
That, along with continued union problems, threats of strikes, and unreasonable demands have ruined the company. These workers are some of the highest paid in Hawaii and the least responsive to customers. Do not be surprised if this company is next in line to fold.
Racing To Beat The Clock On The Dividend Cliff [View article]
Want To Argue About Capital Gains And Dividend Tax Rates? Who Doesn't? [View article]
Yesterday I visited a 100,00 square foot building here in Honolulu completely rented by the federal government with one office of 5000 square feet being used. The remainder is empty.
Here in Hawaii, all government pensions and benefits including complete medical care for the retiree and family are tax free. Private pensions are taxed at the going rate.
Does anyone see a problem?
Linn Energy: The Best Stock To Profit From Cheap Natural Gas [View article]
Household Deleveraging Continues [View article]