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Buyandhold 2012

Buyandhold 2012
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  • Learning From The Masters: Q&A Session With Buyandhold 2012 [View article]

    You have common sense when it comes to investing. Having common sense is the most important thing. Nicholas Ward, Regarded Solutions, Part-time Investor, Tim McAleenan, George Schneider, David Van Knapp, Mike Nadel, Chowder, David Crosetti, Dale Roberts, Chuck Carnevale, David Fish and Richjoy all have common sense when it comes to investing.

    Although we may disagree on a few technicalities ( I will not initiate new positions in stocks with PE ratios higher than 20. I will not buy any stocks when the the S&P 500 is within 20% of an all time high. I never sell.) the bottom line is having common sense when it comes to investing.

    I also appreciate rosenose's style of writing. Very ladylike.

    I am grateful to Nicholas Ward for his hard working in putting this article together. He is young and he has common sense regarding investments. His investments will do well over the long term.
    Apr 28, 2015. 08:49 AM | 7 Likes Like |Link to Comment
  • Learning From The Masters: Q&A Session With Buyandhold 2012 [View article]
    Atomic City,

    You've got that right. My 94-year-old mother has always considered herself to be a better investor than I am. When I told her that I was being interviewed for an article about investing titled "Learning from the Masters" she couldn't stop laughing.
    Apr 27, 2015. 05:40 PM | 14 Likes Like |Link to Comment
  • Learning From The Masters: Q&A Session With Buyandhold 2012 [View article]

    I strongly prefer stocks that pay a dividend. But I will occasionally consider a stock such as Jazz Pharmaceuticals which pays no dividend.

    My investor instincts keep telling me that Jazz may go up a lot in the future. That is the reason that Jazz is one of the stocks on my watchlist.
    Apr 27, 2015. 05:34 PM | 3 Likes Like |Link to Comment
  • Hershey: Not Yet Sweet Enough To Buy [View article]
    WSI, I agree with you that Hershey is not sweet enough to buy. The PE ratio is 25. It is best to avoid initiating new positions in stocks with PE ratios higher than 20.

    But I would love to have Hershey in my portfolio if the stock ever got cheap enough to buy. Warren Buffett recently bought Wrigley, Heinz, and Kraft. Hershey seems to me to be the type of stock that Warren Buffett might want to buy at some point.
    And even if Hershey is never bought out, it is a great stock to have in your portfolio as long as you don't overpay for it.
    Apr 27, 2015. 08:32 AM | 3 Likes Like |Link to Comment
  • Visa: Overvalued In The Short Term, Fantastic Investment In The Long Term [View article]
    "It would be appropriate to wait until the stock comes down to a P/E multiple of approximately 21......"

    MF, I am waiting until the PE ratio of Visa comes down to 20 before I will consider initiating a new position in the stock. The PE ratio of Visa is now 29.78. That is too high to make Visa a prudent investment at this time. Buying shares of Visa when it has a PE ratio of 29.78 is an example of chasing an overpriced stock. The chasing urge is best left to canines. Chasing anything in the stock market generally leads to suboptimal long term total returns.

    Great stock. Bad price. I'll have to pass on Visa at this time.
    Apr 26, 2015. 09:59 PM | 8 Likes Like |Link to Comment
  • The Half-Million Dollar Income Project [View article]
    Value Portfolio,

    First the good part. Age 16 is a good time to begin investing. Time is an investor's best friend in the stock market. I began investing at 14. In hindsight, I wish I had begun investing at 12.

    Now the bad part. I am not particularly enthusiastic about most of the portfolio. If I were 16 and just starting to invest, I would look for the following:

    1) Stocks that have increased their dividends every year for at least the past 10 years.

    2) Stocks that have PE ratios no higher than 20.

    A few stocks that do not seem particularly overpriced to me at this time. Exxon Mobil, Chevron, IBM, Philip Morris, Johnson & Johnson.

    I am not a fan of ETFs. I prefer common stocks.

    For your son to receive $538,000 a year in dividends in 50 years, he would need to have a stock portfolio worth 15 to 20 million dollars. Sounds like a large task but it is definitely possible. Investing in high quality dividend growth stocks will allow your son to have his money working for him and enable him to achieve his financial goal over the long term.
    Apr 26, 2015. 04:37 PM | 4 Likes Like |Link to Comment
  • The 'War On Cash' Migrates To Switzerland [View article]
    Pater, I was in 100% agreement with you in this article until I came to the conclusion to load up on gold.

    As Warren Buffett has said many times, gold is not a good long term investment. I am especially turned off to the idea of buying gold since watching many ads on television proclaiming that our national debt, which is now over 18 trillion, means that we should load up on gold.

    It is true that the central bankers seem to have absolutely no clue what they are doing, and generally do more harm than good over the long term, but that does not mean that investors should assume a bunker mentality and load up on gold and silver.

    Investors need to learn to beat the central bankers at their own game of economic manipulation. Load up on high quality stocks with durable competitive advantages whenever the stock market is relatively low. During central banker induced economic bubbles like the one we are in today, the best course of action would be to hang on to the high quality stocks that you already own and to wait for a major stock market correction before buying more shares.
    Apr 26, 2015. 11:54 AM | 8 Likes Like |Link to Comment
  • I Called It: What's The Take Home Message? [View article]
    Pharma Doc,

    I agree with you that Merck is not a bad buy at this time. The PE ratio is only 14. Insider-Alerts disagrees and thinks that the PE ratio is higher, but I just checked out the PE ratio on Yahoo Finance. According to Yahoo Finance, the PE ratio is 14.

    Merck is a buy and hold forever stock. It has outperformed the S&P 500 over the long term.

    As with any stock, it is extremely important to buy Merck at the right time. Merck did extremely well until the year 2000. Since that time, it's performance has been less than stellar.

    I have been a shareholder of Merck for decades. I am never selling it. During the next major stock market correction, I may even add to my position in Merck.
    Apr 26, 2015. 11:32 AM | 2 Likes Like |Link to Comment
  • Apple: Bear Case From A Bull [View article]
    "These are two very serious areas of potential disaster for the investor."

    J. M., I can only think of two very serious areas of potential disaster for Apple investors.

    1) Failing to accumulate more shares of Apple whenever it is relatively cheap.
    2) Selling Apple.

    Apple is about as close to a long term sure thing as you will find in the stock market. Now if you would prefer to live dangerously and invest in a stock where you could potentially lose your shirt, I have a few suggestions. LinkedIn, Twitter, Amazon, Netflix.
    Apr 25, 2015. 04:20 PM | 16 Likes Like |Link to Comment
  • New studies link rising number of earthquakes with oil and gas drilling [View news story]

    My comment was meant as sarcasm. I plead guilty to being a tree-hugging environmentalist. I can't help myself. I was brought up in Massachusetts and Connecticut and went to an Ivy League college. Hard to get through a background like that and not end up being a tree-hugging environmentalist.
    Apr 25, 2015. 04:06 PM | 3 Likes Like |Link to Comment
  • New studies link rising number of earthquakes with oil and gas drilling [View news story]
    Here we go again. More trouble being stirred up by those tree-hugging environmentalists.

    Now Texas regulators have ordered Exxon Mobil's XTO Energy subsidiary and another company to prove their wells near Fort Worth aren't causing earthquakes.

    The trouble with youngsters today is that they've grown soft. When I was a child, I had to walk three miles to school even during blizzards. No helicopter parents in those days chauffeuring their kids to and from school to prevent little Johnny from getting lost, becoming a victim of the swarms of child predators, or, God forbid, being abducted by space aliens.

    This softness in our culture today causes people to whine and complain a lot. Poor me, my house is shaking because someone is fracking in my neighborhood. To those whiners and complainers, I say suck it up. Grab hold of something sturdy and wait for the house to stop shaking. That seems to me like a small price to pay in our march toward energy independence.
    Apr 25, 2015. 09:10 AM | 8 Likes Like |Link to Comment
  • Hoping For A Stock Market Crash [View article]
    "As a young(ish) investor, I find myself hoping for a crash."

    Joe, I am not a young or even young(ish) investor. An accurate description of me would be long in the tooth. I am 59 and have been investing in the stock market for 45 years.

    I would be so happy if we had another major stock market correction, somewhere in the 20% to 50% range, that I would actually do a backward flip.

    What investor thinking clearly would not welcome the opportunity to purchase high quality buy and hold forever stocks such as 3M, JNJ, Abbott Labs, Philip Morris, P&G, Apple, XOM, Walgreens, Coca-Cola, PepsiCo and Wells Fargo at 20% to 50% off their current prices?

    Buying stocks at the right price matters a lot. What is the right price? As cheap as possible. A major stock market correction is welcome news for the astute investor.
    Apr 25, 2015. 07:29 AM | 2 Likes Like |Link to Comment
  • Holy Smoke - My Favorite Idea That Everyone Knows But Doesn't Understand [View article]
    Holy smoke, is right. There have been quite a few articles on Seeking Alpha lately that made me do a double take. Sell Apple. Sell Johnson & Johnson. Short Altria.

    Ms. Jenks, you are probably aware that Philip Morris was the best performing stock during the period from 1957 to 2007. I was fortunate to have hitched a ride on the Philip Morris financial juggernaut in 1970 and had the good sense not to ever sell any shares of Philip Morris or the spinoffs Altria, Kraft, and Mondelez.

    Philip Morris has been a punching bag ever since 1964 when the Surgeon General declared that cigarette smoking may be hazardous to your health. Since that time, self-serving politicians hoping to earn brownie points with their constituents have gone after Philip Morris as if it were the Black Plague. Endless lawsuits, bans on advertising, restrictions on where smoking may occur and now restricting the sale of tobacco products to brown paper bags in certain countries.

    For companies that has been kicked around so much, Philip Morris and its spinoff Altria have really delivered the goods to shareholders over the long term. The constant assault on the tobacco companies has only served to keep their PE ratios relatively low, thus making them relatively good buys at all times.

    Sorry, Ms. Jenks, I am never selling Altria, Philip Morris, Kraft or Mondelez. In my view, that would be like selling the goose that laid the golden egg.
    Apr 24, 2015. 03:56 PM | 19 Likes Like |Link to Comment
  • Retired Dividend Investors Are Deluded By Yield On Cost [View article]
    "We can see that swapping Exxon Mobil Corporation for OHI yields us an increased annual income of $2203.70......"

    "The lower yielding equity, growing its income at a faster pace, is better suited to the young investor who has plenty of time to see his income grow over time."

    George, I read all of your articles and agree with most of what you say, but you really lost me when you mentioned swapping Exxon Mobil Corporation and added that lower yielding equities are better suited to young investors.

    I view investments from a much simpler perspective. Either an investment is a good investment or it isn't. If it's a good investment, then it should be a good investment for teen-agers, and middle-aged folks and even Grandma Moses.

    Exxon Mobil is a good investment, a stock which should be accumulated whenever it is relatively cheap and then never sold.

    To be truthful, George, target date funds really irritate me. I see no good reason why older folks should be put out to pasture in the land of bonds and high-yield securities.

    A person retiring at age 60 might live another 30 or 40 years. That 60-year-old would be making a mistake if he changed his style of investing in the highest quality stocks that perform the best over the long term and buying these stocks as cheaply as possible.

    Bottom line: I invest the way I did when I was 25. I will still be investing that way if I am alive at 95. A good investment is a good investment for a person of any age. Chasing yield in the stock market is a mistake. In fact, chasing anything in the stock market is a mistake.
    Apr 24, 2015. 11:31 AM | 35 Likes Like |Link to Comment
  • What You Should Pay For Starbucks [View article]
    What you should pay for Starbucks?

    I would be wiling to pay $33 a share for Starbucks at this time. The earnings are $1.65. Multiply 1.65 times 20 and that equals 33.

    Paying more than $33 a share for Starbucks at this time is overpaying for the stock.

    Not even the best stock is worth buying when it is overpriced.
    Apr 23, 2015. 06:24 PM | 6 Likes Like |Link to Comment