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Buyandhold 2012

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  • Disney: Now Is Not The Time To Panic [View article]
    Time to panic? Disney shareholders? Are you kidding?

    One thing that I have learned, Josh, after having been a shareholder in Disney for many decades: Never mess with that Mighty Mouse.

    Disney has run circles around the S&P 500 over the long term. Disney is a buy and hold forever stock. It should be considered for purchase whenever it is attractively priced and then never sold.
    Dec 1, 2015. 07:35 AM | 1 Like Like |Link to Comment
  • Buy Low/sell High. But What Is Low? [View instapost]

    I am going to let all of my friends and relatives know about Paribus. I am relatively frugal, but many of my friends and relatives make me look like Diamond Jim Brady.

    I do very little shopping online. I am in the age group that likes to drive to brick and mortar stores. I turned 60 last week. Walking from the parking lot into the store helps keep the arteries from clogging.

    When I saw the question "What is low?" I thought you were referring to the price of stocks. Just like I know pornography when I see it, I know a low priced stock when I see one. Haven't seen too many low priced stocks lately.
    Nov 30, 2015. 06:47 PM | 1 Like Like |Link to Comment
  • Salt warnings to hit menus in NYC [View news story]
    "Restaurant chains in New York City will be required to post salt warning labels on menus....."

    It must be fun top be a bureaucrat. You get to spend your whole day thinking of ways to protect the consumer from businesses which are out to harm them.

    Why are only restaurant chains required to post salt warning labels? New York City has many restaurants that are not chains. The last time I was in NYC, I had dinner with a few friends at the Four Seasons.

    The next time I have dinner at the Four Seasons, I would like to see the salt content of everything on the menu posted in bold letters. Wouldn't hurt if the Four Seasons was required to post the vitamin and mineral content of every item on the menu.

    Come to think of it, every restaurant should be required to take the blood pressure readings of all customers before allowing them to order. And all bars and restaurants should be required to make customers take a breathalyzer test before ordering any drinks. A body fat test should also be required to determine who must order from the diet menu.

    The world has really gone crazy. Overpaid bureaucrats with nothing better to do than pass annoying laws in the guise of protecting the consumer.
    Nov 30, 2015. 03:21 PM | 18 Likes Like |Link to Comment
  • Retirement Strategy: Going For The Money Right Now [View article]
    Selling Chevron and buying MAIN?

    Different strokes for different folks.

    I would not have done that.

    First the positives about MAIN.

    1) It has outperformed the S&P 500 and Chevron over the past 10 years.

    2) It pays a dividend of over 6%.

    Now the negatives about MAIN.

    1) It is close to a 52-week high.

    2) It has a small market cap. That makes it a bit risky.

    If you could turn back time, RS, this is what I would have done. I would not have sold any shares of McDonald's or Chevron. I would have put MAIN on my watch list and considered buying it when it was close to a 52-week low.

    Your investment instincts are usually good, RS. You have never advocated buying any of the high flying momentum stocks at their absurdly high prices. Believe it or not, some investors actually buy stocks that are losing money or that have PE ratios over 100. Usually not old-timers like us. Usually youngsters who don't know any better.
    Nov 30, 2015. 02:04 PM | 7 Likes Like |Link to Comment
  • Retirement Income And Dividends For You [View article]
    One of the Rockefellers said that his greatest pleasure in life was receiving dividend checks.

    I must be related to them. I'll have to check on

    I have physical stock certificates or Direct Registration statements for all of my stocks. The dividend checks are all mailed to me. More than 100 dividend checks every year. The ritual of opening the letter, signing the dividend check, driving to the bank and then depositing the dividend check is one of the highlights of my week.

    I have been a GE shareholder for decades. When GE lost about 90% of its value and slashed its dividend in 2009, all of my friends who were GE shareholders were carrying on as if the world had ended.

    "Snap out of it!" I yelled. "How often do you get to buy a high quality stock like GE at a 90% off sale? Never look a gift horse in the puss. Load up on more GE."

    Last time I checked, GE was over 30. Those who bought GE at prices ranging from 7 to 12 back in 2008 and 2009 are probably happy with their investment.
    Nov 30, 2015. 10:49 AM | 8 Likes Like |Link to Comment
  • Dividends On Steroids: Learn Step-By-Step, As I Build A Real $400,000 Income Portfolio [View article]
    Richard, while your strategy of boosting income by using covered option writing is interesting, it is definitely not for me.

    The problem I see with options is that an investor is making a bet on what will happen to a stock over a short period of time. I have no idea what will happen to a stock over a short period of time. I have a general idea of what will happen to a stock over a long period of time.

    Simplicity is a good goal to have in almost anything. Your strategy of boosting income using covered option writing is just too complicated for me.
    Nov 30, 2015. 08:14 AM | 28 Likes Like |Link to Comment
  • Dividends & Income Digest: Regarded Solutions Dishes About Div Stocks, Portfolio Management And His Predictions For 2016 [View article]
    "There is no single "right" way for everyone to invest....."

    RS, I will have to agree with you about that. I have a friend who invests very differently than I do. This friend invested in Cisco when it first went public. All he did was invest in Cisco. He never invested in any other stock. Today his investment in Cisco is worth more than 20 million.

    I once explained to him that the best strategy to achieve long term success in the stock market with the least amount of risk is to buy high quality dividend growth stocks whenever they are attractively priced and then to never sell them.

    He looked at me as if I had two heads.

    "There are exceptions to every rule," he said.

    I guess that's true, RS. Except for death and taxes. But I still believe you should not have sold McDonald's or Chevron.
    Nov 30, 2015. 08:05 AM | 8 Likes Like |Link to Comment
  • Can Altria Afford Raising Its Dividend? [View article]
    Philip Morris was the best performing stock during the period from 1957 to 2007. Now Philip Morris has been split up into 4 companies: Altria, Kraft-Heinz, Philip Morris and Mondelez.

    Of course Warren Buffett regrets not having invested in Philip Morris many years ago. He would have made a ton of money.

    I was fortunate to have invested in Philip Morris in 1970. I have never sold any shares of Philip Morris or any of its spinoffs.

    Do I feel guilty that I own tobacco stocks? Not at all. My ownership of tobacco stocks has not resulted in even one more person in the entire world smoking a cigarette.

    Am I worried about the future dividends of Altria, Philip Morris, Mondelez or Kraft-Heinz? Not at all.
    Nov 29, 2015. 09:49 PM | 7 Likes Like |Link to Comment
  • SunTrust: Thanksgiving shopping a "bust" [View news story]
    Holiday shopping a bust?

    Doesn't surprise me. Only the top 10% has any money left to spend. Everyone else is struggling.

    Speaking of Christmas shopping. Here is a bit of advice from Santa.

    Stop spending money on &*^% you don't need. No, Bertha, you don't need another flat screen TV just because it is 50% off. What you should consider buying instead, Bertha, is a high quality dividend growth stock such as PepsiCo or Philip Morris or Johnson & Johnson whenever it is attractively priced. Ever thought of placing a few beautifully wrapped stock certificates under the Christmas tree, Bertha?
    Nov 29, 2015. 08:32 AM | 3 Likes Like |Link to Comment
  • MasterCard: Cash Is No Longer King [View article]
    The PE ratio of MasterCard is 30.29. The PE ratio of Visa is 30.78.

    Both stocks are a hold at this time.

    During the next substantial stock market correction, the PE ratios of both of these stocks might fall to 20 or lower. At that point, both of these stocks should be considered for purchase.
    Nov 28, 2015. 12:30 PM | 7 Likes Like |Link to Comment
  • Stock Markets Remain At Dangerous Fed-Conjured Topping Valuations [View article]
    "....the next bear is going to be a doozy."

    Your words to God's ears, Adam. I have been waiting for a major stock market correction for almost four years. What investor thinking clearly would not welcome the opportunity to buy high quality dividend growth stocks at a 20% to 60% off sale?

    Unfortunately, the Fed's zero interest rate policy has prevented the stock market from falling to an appropriate level and has deprived investors of the opportunity to purchase stocks at reasonable and even discounted prices.

    But the Fed's magical levitation act of the stock market can't last forever. At some point in the future, stocks will go on sale again. And I will be happier than a K Mart shopper attracted by a blue light special. I'll be putting the pedal to the metal and driving down to the local Scottrade office to load up on more high quality stocks at substantially reduced prices.
    Nov 28, 2015. 11:41 AM | 3 Likes Like |Link to Comment
  • Gold hits five-year lows as investors bail [View news story]
    Gold hits five year lows and investors are selling?

    Doesn't sound like a smart move to me. Smarter move would have been to have sold at the time that gold hit a five year high. Buy low. Sell high. Not rocket science.

    I inherited a box filled with old gold coins from a great aunt who passed away in 1975. That box filled with old gold coins is still sitting there in my safe deposit box at the bank. A lot of good it has done me. No interest. No dividends. Safe deposit box fees every year.

    My stock market mentor advised me to sell those gold coins back in 1975 and invest the money in Philip Morris, Mobil and Abbott Labs. Those stocks have gone up by at least 500 times in the past 40 years. But like a dummy, I didn't listen and paid safe deposit box fees for the next 40 years on an asset that has not paid me one dime. All that glitters is not gold is right.
    Nov 28, 2015. 08:45 AM | 6 Likes Like |Link to Comment
  • Alimentation Couche-Tard In A Bubble? Not A Chance [View article]

    This article caught my attention because the last time I was in Florida I stopped at a Circle K and decided to check out the company that owned Circle K.

    Alimentation Couche-Tard Inc (ATD-A To)

    52-week price range 40.76 to 63.93. Current price 63. PE ratio 32.98. Yield .35%.

    Alimentation Couche-Tard has outperformed the S&P 500 over the long term. However, with a current PE ratio of 32.98, the stock is not a buy at this time. It is a hold.

    I am following Alimentation Couche-Tard. The next time that the PE ratio falls to 20 or lower, I may invest in it.
    Nov 28, 2015. 07:00 AM | 1 Like Like |Link to Comment
  • Fed Policy: Unsafe At Any Speed? [View article]
    Sorry, Eric, but I am even more negative on the Fed than you are.

    The Fed's monetary policies during the past 17 years have been a complete disaster. The Fed began to lower interest rates in 1998. This was one of the main contributing factors to the housing bubble which burst in 2008 and nearly took the entire economy down with it.

    Then the Fed was given credit for saving the economy from an economic collapse in 2008 that the Fed had almost singlehandedly caused through its misguided monetary policies beginning in 1998. There is a lot of irony in that.

    The sad fact is that if the Fed had not begun to lower interest rates in 1998, but had simply kept interest rates where they were and then had gone on a 17 year vacation, the economy would be in better shape today.
    Nov 27, 2015. 05:30 PM | 3 Likes Like |Link to Comment
  • Where Can I Find Safe Income For Retirement? Part V [View article]
    "...brokers are paid bribe-like commissions to stick retail investors - many of who are elderly - with overpriced funds."

    Chris, you've burst my bubble. Are you saying that some brokers don't have the best interests of the retail investors in mind? Just kidding.

    I can't tell you how many times my 94-year-old mother has been approached by brokers attempting to sell her something that makes a lot of money for them and would have delivered mediocre returns for her. These poor brokers don't realize that she is extremely financially savvy and always slink away apologetically after she reads them the riot act.

    Safe income for retirement? Dividends from the dividend aristocrats seem relatively safe to me. After all, these stocks have been raising their dividends every single year for at least the last 25 years. In addition, dividends are taxed at a favorable tax rate.
    Nov 27, 2015. 02:14 PM | 14 Likes Like |Link to Comment