Buyandhold 2012

Buyandhold 2012
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  • Gilead: I Want To Sell But I Can't  [View article]
    You want to sell Gilead?

    Why?

    Gilead has vastly outperformed the S&P 500 over the long term and it is cheap now.

    If I were a Gilead shareholder, I would never sell it. I may even invest in Gilead when the S&P 500 falls to 1700.
    Feb 9, 2016. 12:04 PM | 3 Likes Like |Link to Comment
  • Was I Wrong About The Stock Market Bottom? - Bezek's Daily Briefing  [View article]
    Were you wrong about the stock market bottom?

    Having invested in the stock market for 46 years, I have learned that it is a good idea to look for stock market bottoms. After all, it is always better to buy low than to buy high.

    We hit a stock market bottom on March 9, 2009. That was a major bottom. The stock market has roughly tripled since that time, although recently it has pulled back a bit.

    Although I never sell, I am waiting for the S&P 500 to fall to 1700 before I start buying again. 1700 seems to me to be an attractive bottom to begin buying again. 1600 would be an even more attractive bottom. What the heck, 1000 would be an extremely attractive bottom. When it comes to stock market bottoms, the lower the better.

    I've got gas in the car and am ready to start buying again the day that the S&P 500 falls to 1700. After all, an attractive bottom shouldn't be ignored by investors.
    Feb 9, 2016. 11:59 AM | 2 Likes Like |Link to Comment
  • The Stock Market Decline Is Entering Its Puke Phase  [View article]
    "The market averages have more room to fall."

    Your words to God's ears, William.

    The S&P 500 is down by around 10% from its all time high.

    The day that the S&P falls to 1700 is the day that I will drive to Scottrade to buy either Apple, Gilead, Exxon Mobil or another dividend paying stock that appears to be attractively priced, meaning cheap.

    Nothing bad ever happens in the stock market to investors who know what they're doing and have an intelligent investment strategy. That is the reason that I have always loved Wall Street,

    Kicking Wall Street around seems to be a popular sport among hypocritical politicians who created an economic mess and now use Wall Street as a scapegoat and whipping boy.

    There are very few real villains on Wall Street except perhaps people like Madoff and that smirking little slimeball Shkreli.

    At any rate, I am looking forward to the next big sale in the stock market.
    Feb 5, 2016. 09:14 PM | 18 Likes Like |Link to Comment
  • Consider This Strategy To Reduce Stock Market Anxiety  [View article]
    Investors who get anxious over their stock market investments are not concentrating on the right thing. Income.

    I have had investments in the stock market for 46 years. The total value of my portfolio fluctuates quite a bit. At least 3 times in the past 46 years, the total value of my portfolio fell by about 50%.

    The volatility in the total value of my portfolio does not disturb me at all since my dividends always go up

    In the final analysis, since I never sell any of my stocks, the total value of my portfolio is unimportant. What is important is the continuously rising dividend income stream. Or, as my stock market mentor once said to me: Dividends are the only thing that matters, dummy!
    Feb 5, 2016. 08:40 PM | 22 Likes Like |Link to Comment
  • LinkedIn: Why So Surprised At The Drop?  [View article]
    Sophocles,

    By the way, I love your name since Sophocles wrote the best play ever written "Oedipus Rex."

    Am I surprised by the drop in LinkedIn?

    Check my comments over the last 4 years. All I have been saying is that LinkedIn is ABSURDLY overpriced.

    Anyone reckless enough to invest money in a stock with a PE ratio over 100 gets no sympathy from me when the stock eventually crashes.

    They say that anyone who represents himself in court has a fool for a client. Anyone who invests money in a stock with an absurdly high PE ratio needs to look in the mirror if he wants to see a fool looking back at him.
    Feb 5, 2016. 01:50 PM | 6 Likes Like |Link to Comment
  • Retirement Strategy: Sometimes Living In The Real World Sucks!  [View article]
    Sometimes living in the real world sucks?

    Compared to what? I have never lived in any other world except the real world so I have no other world to compare it to.

    I have been in Jupiter, Florida since Monday. A few people are complaining today since the temperature today will range from 56 to 66. They say it's too cold.

    Being a tactful guy, I just nod. My 94 year old mother would say: :Shut the hell up or God will give you something to complain about. But I am less blunt.

    As far as only running out of dry powder in a fantasy world, I still have 20% of my total net worth sitting in cash. Although I never sell, I have bought nothing since March of 2012.

    If the S&P 500 falls to 1700 or lower, I will start buying again. Otherwise I will do nothing.

    Sometimes doing nothing is the best thing to do.
    Feb 5, 2016. 12:36 PM | 11 Likes Like |Link to Comment
  • Gilead Scares The Hell Out Of Me  [View article]
    Gilead scares the hell out of you?

    David, you're young. It must be lack of investment experience that makes Gilead scare the hell out of you.

    I, on the other hand, have been around the block in the stock market for 46 years. And Gilead scares me about as much as Casper the Friendly Ghost or Tinkerbell.

    All of the following are true about Gilead.

    1) Close to a 52-week low.
    2) PE ratio of 7.
    3) Outperformed the S&P 500 over the long term.

    That is not at all scary. That makes me consider buying the stock during the next substantial correction in the S&P 500.

    But I can name many high flying absurdly overpriced momentum stocks with PE ratios in the stratosphere that do scare the hell out of me.

    Amazon, LinkedIn, Netflix, Under Armour, Tesla

    Those five stocks give me the heebie-jeebies.
    Jan 31, 2016. 08:42 PM | 8 Likes Like |Link to Comment
  • How Could Tesla Offer The Model 3 For Only $9,500?  [View article]
    "Tesla is introducing the car today that almost everyone will want to buy."

    Not me. My 2006 Toyota Camry only has 94,000 miles on it. When it hits 120,000 miles I will trade it in for a brand new Toyota Camry. At the rate that I drive, that should be in about 3 more years.

    I have seen a few Teslas in the parking lot of the Publix market in Jupiter, Florida. I have to admit that the car looks great. But I frankly don't like the idea of having to charge it. If I never had to charge it, I might consider buying it, even at that hefty price tag of $35,000.

    Elon Musk has the reputation of being a wunderkind. If he could figure out a way that the Tesla never had to be charged and could sell it for $35,000, I might actually trade in my Toyota Camry for a new Tesla.
    Jan 31, 2016. 03:52 PM | Likes Like |Link to Comment
  • Retirement Strategy: I Hate This Market But The Team Alpha Retirement Portfolio Keeps Producing More Income  [View article]
    "I hate this market?"

    RS, that is not a positive attitude. The stock market is your friend. There is always an opportunity for the astute investor to make money.

    I have nothing but feelings of gratitude for the stock market. I have made so many mistakes in my career that it isn't even funny. But investing in the stock market has saved me from having to stand on the street corner with a sign reading "will work for food."

    I am truly puzzled by the attitude of some investors toward substantial corrections in the stock market. A substantial correction is a SALE. What investor thinking clearly does not like to buy stocks when they are on sale?

    When the S&P 500 was off by about 10% recently, I was starting to feel optimistic that big sales in the stock market might be just around the corner. A 10% drop in the S&P makes me smile. A 20% drop makes me start to buy. A 30% drop makes me buy even more. A 50% drop makes me back up the truck to buy. A 60% or more drop makes me do a backward flip and a cartwheel before I back up the truck to buy.

    Buying the dividend aristocrats when they're cheap is a good thing. Buying them when they're dirt cheap is even better.
    Jan 31, 2016. 03:33 PM | 19 Likes Like |Link to Comment
  • Uber Wins The Crowd  [View article]
    You need a smart phone and a credit card to use Uber?

    That leaves me out. I do have a few credit cards, but no smart phone.

    I bought my cell phone in 2007. It is made by Kyocera. My carrier is Verizon Wireless. Nothing smart about that phone. Someone told me that you can text with it, but I don't text. The sight of millennials and other youngsters furiously texting has turned me off. Besides, at age 60 my vision isn't what it used to be. I have those damn progressive lenses and stubby fingers. I won't be texting any time soon.

    My 94-year-old mother considered driving for Uber to pick up some extra cash, but she doesn't have a smart phone or text either. Her driving record isn't that good. Too many speeding tickets.

    When Uber goes public I may invest in it, as long as the PE ratio is no higher than 20.
    Jan 31, 2016. 11:25 AM | 3 Likes Like |Link to Comment
  • Celebrating The Falling Market With A January Portfolio Update  [View article]
    Celebrating a falling market?

    That's the right attitude. Some investors have an odd reaction whenever the stock market falls a lot. They experience angst. These poor misguided investors wouldn't recognize a big sale in the stock market if it hit them over the head.

    The bottom line: Buying stocks when they're cheap is good. The cheaper the better.

    There are many stocks that I am considering buying when the S&P 500 falls to 1700. Exxon Mobil, Gilead, Apple, Coca-Cola, PepsiCo, McDonald's, Walgreens, Altria, Philip Morris, Kraft-Heinz, Mondelez, Nike, Starbucks, Hershey, Church & Dwight, Home Depot, Abbott Labs, AbbVie and Wells Fargo.

    You appear to be on the right track, Derek. I didn't see any absurdly overpriced high flying momentum stocks in your portfolio.
    Jan 31, 2016. 08:26 AM | 8 Likes Like |Link to Comment
  • Weighing The Week Ahead: Is The Correction Over?  [View article]
    Is the correction over?

    I sure hope not. Big sales in the stock market brighten my day. Still waiting for an S&P 500 of 1700 to start buying again. I have learned that good things do come to those who wait.
    Jan 31, 2016. 08:04 AM | 11 Likes Like |Link to Comment
  • S&P 500 Update: Bulls And Bears Focus On Crude Oil And The Fed. Both Have Taken Their Eye Off Of What Really Matters - Earnings  [View article]
    "...what really matters - earnings."

    You can say that again. Frankly, 99% of what is said in the investment media is just noise which should be tuned out. The Fed, yield curves, momentum, death crosses, moving averages, derivatives, options, recent news......blah, blah, blah.

    The most important thing to focus on when determining which stocks to buy is the earnings history. The second most important thing is the dividend history. Third most important, the PE ratio. Fourth most important, the performance of the stock in relation to the S&P 500. Fifth most important, whether the stock market is relatively high or low. Sixth most important, the debt to equity ratio.

    That's about it. Everything else is too much information. And too much information makes Jack a dull investor.

    Thank you for reminding investors what really matters. Earnings.
    Jan 30, 2016. 06:04 PM | 3 Likes Like |Link to Comment
  • Did Gilead Just Open 'Pandora's Box?'  [View article]
    Gilead remains a sell?

    Sell a stock that is at a 52-week low and has a PE ratio of only 7? Sell a stock that has dramatically outperformed the S&P 500 over the long term?

    If I were a Gilead shareholder, I would never sell it. I don't believe in ever selling the goose that laid the golden egg. I would also consider buying more shares whenever the stock appeared to be attractively priced.

    Selling Gilead would be as big a mistake as selling the tobacco stocks every time the pack of wolves descended upon the stocks demanding their pound of flesh. The tobacco stocks have substantially outperformed the S&P 500 over the long term.

    I am considering buying Gilead as soon as the S&P 500 falls to 1700.
    Jan 29, 2016. 03:49 PM | 3 Likes Like |Link to Comment
  • Gilead: There Is No Silver Lining To Zepatier, Time To Sell  [View article]
    Time to sell Gilead?

    Let's think about that for a moment.

    The 52-week price range of Gilead was 82.55 to 123.37. The price is now 83.81. The PE ratio is 7.70.

    Econ 101 teaches us to buy low and sell high. Selling Gilead at 83.81 is not selling high.

    The adjusted closing price of Gilead on August 3, 1992 was 31 cents. That means that a $31,000 investment in Gilead on August 3, 1992 is now worth $8,381,000. That is an outstanding return in a period of less than 24 years.

    If I were a Gilead shareholder, I would never sell it. I would also consider buying more shares whenever the stock appeared to be attractively priced.
    Jan 29, 2016. 11:20 AM | 11 Likes Like |Link to Comment
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