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Buyandhold 2012

Buyandhold 2012
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  • Coca-Cola: Downside Is Less Than 5% [View article]
    The downside of Coca-Cola is less than 5%??????

    Stocks go up and stocks go down, but the downside of Coca-Cola is a lot more than 5% if we ever have a severe stock market correction.

    Frankly, I hope Coca-Cola goes down 20% or more. Then I would back up the truck and buy it like a crazed shopper at a Black Friday sale.

    Coca-Cola is one of the best stocks on the New York Stock Exchange. It is a stock that should never be sold and should be purchased whenever the stock market is relatively low.

    The commentator who wrote that the upside of Coca-Cola is only about 5% must not be well acquainted with the history of the stock. Coca-Cola has been one of the best performing stocks of the past 50 years. The performance of Coca-Cola during the next 50 years will surely bring a smile to any investor's face.
    Apr 18 02:19 PM | 1 Like Like |Link to Comment
  • Retirement Strategy: Doing Nothing Is A Strategy For Dividend Income Investors [View article]
    "Doing nothing is a strategy for dividend income investors."

    Extremely wise words, Regarded Solutions.

    Most investors do too much. They buy. They sell. They run around like chickens with their heads cut off.

    I hardly ever buy, only when the stock market is relatively low. And I never sell. Our frantic fast-paced society encourages people to be constantly doing something. So most people end up running around in circles.

    The successful investor buys high quality stocks with durable competitive advantages whenever the stock market is relatively low and then he never sells them.
    Apr 18 11:38 AM | 4 Likes Like |Link to Comment
  • What Exactly Is Risk: Part II [View article]
    "We don't know how to beat the market on a risk-adjusted basis, and we don't know anyone that does either."

    That's a depressing thought. Are we then forced to settle for mediocre returns over the long term?

    Warren Buffett found a way to beat the market on a risk-adjusted basis. The way to beat the market on a risk-adjusted basis is to buy high quality stocks with durable competitive advantages whenever the stock market is relatively low and then to never sell the stocks.
    Apr 18 09:45 AM | 3 Likes Like |Link to Comment
  • Unplanned Early Retirement, Part 1 - Strategy, Stability, And Moving Forward [View article]
    Kevin, I think there is an old saying that life happens when we are planning for something else. Few people today can depend on a pension so it is necessary for most people to save and invest for retirement.

    Because of the nature of the type of work that I do, my income fluctuates quite a bit. But at age 58 I have reached a point where my income from investments is higher than my income from working.

    Saving and investing for retirement is a skill that most people need to have and one that should be taught better in our schools. Investing in stocks that have a long history of raising their dividends every year is one way that an investor can keep up with inflation during retirement.
    Apr 17 10:12 PM | 4 Likes Like |Link to Comment
  • Invest, Don't Trade: Lessons From The Tax Collector [View article]
    "Invest, don't trade."

    That should be one of the Ten Commandments for serious investors who wish to make money over the long term. Every successful investor that I know bought high quality companies when they were cheap and then never sold them.

    Warren Buffett put it best. "If you are in the right stocks, the ideal holding period is forever."
    Apr 17 12:56 PM | 5 Likes Like |Link to Comment
  • What Exactly Is Risk? [View article]
    Interesting article, Larry. Risk is always present in the stock market. Sometimes there is more risk, sometimes less risk. The closer the stock market is to an all time high, the more risk there is that long term performance of newly initiated positions will not be optimal. Better to buy stocks when most investors are selling in panic.
    Apr 17 11:29 AM | Likes Like |Link to Comment
  • Yahoo: If It Sounds Too Good To Be True... [View article]
    "The Alibaba IPO may be a "sell the news" occasion."

    The Alibaba IPO makes me think of the old Texas expression "all hat, no cattle." Too much hype and excited anticipation for this investor of 44 years.

    I would avoid buying any shares of Yahoo until the PE ratio falls to 20 or lower.
    Apr 17 07:37 AM | Likes Like |Link to Comment
  • Alibaba Is Kicking Yahoo Into High Gear [View article]
    "For the long term, I'm neutral on Yahoo."

    Yahoo certainly does seem overpriced at this time with a PE ratio of 28. Best course of action would be to wait until the PE ratio of Yahoo has fallen to 20 or lower before deciding whether or not to invest in the stock.
    Apr 16 09:59 PM | Likes Like |Link to Comment
  • Gilead: This Baby Has Been Thrown Away With The Bathwater [View article]
    Fear and Greed, I got the PE ratio from Yahoo Finance. The current PE ratio according to Yahoo Finance is 38. If you are correct regarding the projected earnings for 2014, there is a possibility that the PE ratio will fall to 20 or lower. At that point Gilead would be a strong buy.
    Apr 16 08:23 PM | Likes Like |Link to Comment
  • Every Portfolio Has Faith [View article]
    The ideas about investing discussed in this article show a lot of common sense. Buy high quality companies with durable competitive advantages when these companies are cheap and then never sell them. That's what Warren Buffett does. That's what Yale and Harvard do. That's what I have always done thanks to good advice from a mentor who had a lot of common sense when it came to investing in the stock market. Successful investing in the stock market is actually quite simple if you know what you are doing and stick to your plan. A lot of the noise on Wall Street regarding algorithms and rotation and asset allocation and the importance of revenue growth as opposed to earnings growth is just a lot of mindless babble by those who bring confusion rather than understanding to investment issues.
    Apr 16 07:57 PM | 2 Likes Like |Link to Comment
  • Bank Of America: Now Is The Perfect Time To Buy [View article]
    I disagree that now is the perfect time to buy Bank of America. The PE ratio of Wells Fargo is lower than the PE ratio of Bank of America. Wells Fargo is a better buy at this time.
    Apr 16 05:22 PM | Likes Like |Link to Comment
  • Wells Fargo: Revisiting A 'Triple Threat' Investment [View article]
    There was an old ad on television. When E. F. Hutton talks, people listen. I don't even know whether or not E. F. Hutton still exists, but when Warren Buffett talks, I certainly listen. Warren Buffett likes Wells Fargo. As far as I am concerned, that is better than getting the Betty Crocker Seal of Approval.

    Wells Fargo is one of the best, if not the best, bank stock. Wells Fargo should be considered for purchase during substantial stock market corrections.
    Apr 16 05:17 PM | Likes Like |Link to Comment
  • Gilead: This Baby Has Been Thrown Away With The Bathwater [View article]
    No doubt about it, Gilead is among the best of the biotech stocks, right up there with Biogen Idec. However, I would not buy it today. The PE ratio is extremely high.

    Gilead is a stock to watch and to purchase whenever the PE ratio falls to 20 or lower.

    I became aware of Gilead many years ago and was immediately struck by the name. Edgar Allan Poe asked if there was balm in Gilead. The stock is certainly a winner, but I wouldn't buy it unless the price was right.
    Apr 16 05:08 PM | Likes Like |Link to Comment
  • Dividend Champions Ranking: Part 1, The Heavyweights [View article]
    Wonderful article. The list of dividend champion heavyweights includes some terrific stocks. I made a big mistake not buying V. F. Corporation thirty years ago. The reason I did not buy it was that the stock was dead money for many years before it finally took off.

    My two favorite stocks in the dividend champion heavyweights list are Franklin Resources and T. Rowe Price. Those two stocks really took off after 1980 due to the fact that investors were forced to purchase mutual funds in their retirement plans. Talk about a captive audience. Mutual funds are mediocre investments at best, but stocks that sell mutual funds to a captive audience such as Franklin Resources and T. Rowe Price are excellent long term investments.
    Apr 16 04:32 PM | Likes Like |Link to Comment
  • Constructing And Designing The Stock Portfolio That's Just Right For You: Part 1 [View article]
    Chuck, you have natural teaching ability. Your articles are easy to understand and extremely clear.

    Of the stocks mentioned in this article, I like Proctor & Gamble, Wal-Mart, Johnson & Johnson, Colgate Palmolive and Stericycle. Four stalwarts and one fast grower.

    Other stalwarts that I like a lot are Exxon Mobil, Abbott Labs, Philip Morris and Coca-Cola. Another excellent fast grower is Amphenol.

    The stalwarts should make up the majority of the portfolio since this allows the investor to sleep well at night. A fast grower or two gives the portfolio a little extra kick.
    Apr 16 01:57 PM | 5 Likes Like |Link to Comment
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