George Edwards

George Edwards
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  • Putting The Gold Selloff Into Perspective  [View article]
    $0.10 in 1970 is future-valued to $0.26 at the average rate of inflation, not $1.00.
    Nov 1, 2014. 04:10 PM | 1 Like Like |Link to Comment
  • Seadrill Ltd: When Will The Pain End?  [View article]
    Reading this is like reading one of those climatist blogs about global warming: Lots of questionable data, wildly diverging opinions, and no one who knows what is going on.
    Sep 17, 2014. 07:35 PM | 6 Likes Like |Link to Comment
  • Weekly Intelligence For MLP Investors  [View article]
    KMI is priced like FB?? Better check your fundamentals.
    Aug 24, 2014. 11:56 AM | 2 Likes Like |Link to Comment
  • Dividends Matter, But Not For The Reason You Think  [View article]
    Yes, such a strategy of investment does exist, but it is not popular, and in fact denigrated, by the kind of folks who read these articles. They are deeply committed (by interpretation of their writings, both articles and comments), to getting rich via the stock market.

    A better way to approach the stock market is to treat it as a system of not getting poor.

    Buying the common stocks of companies with Boards who have records of regularly raising the (actual, real cash) dividends over many years is the basis. There are only a few of these, and many are sub-par in dividend payment, ot have high debt-to equity ratios, so stock picking becomes easy.

    Mutual fund managers, and most investment advisers, simply do not comprehend this simple concept. And neither do their customers, which is what keeps the advisers in business.
    Aug 16, 2014. 10:46 AM | 2 Likes Like |Link to Comment
  • Richard Kinder made $1.5B this morning after consolidating pipeline empire  [View news story]
    Mr. Kinder made me a lot of money, not just this morning, but over the past 12 years I have owned KMP units. And not just capital gains, but a very nice income stream, steadily increasing over the years.
    Aug 11, 2014. 11:43 AM | 4 Likes Like |Link to Comment
  • 6-Month Review: Comparison Of $10,000.00 CD To A $10,000.00 Dividend Portfolio  [View article]
    The point where you sell the stock to "enjoy the gains" is when the price rise has greatly exceeded the rise in dividends to the degree that you can earn a better yield elsewhere. But that is a comment on the quality of the stock, in part: The Board has not kept up their dividend increases adequately.

    And, looking back on more than 40 years in the stock market, it only hurts when you sell. I have watched many of my stocks fall below the acquisition price, and sit there for a long time, only to rise back above that price again later. Dividends are real money every quarter: The stock price is only real when you buy or sell.

    And why sell a stock when the price is up, if the dividend is up in proportion? I own many stocks which paid 3% relative yield 20 years ago, and which pay the same ratio today, but the dividend had more than doubled in that time.

    This policy has, by the way, beaten the S&P 500 year in and year out, by 2 or 3 percentage points.
    Jul 16, 2014. 08:49 AM | 1 Like Like |Link to Comment
  • 6-Month Review: Comparison Of $10,000.00 CD To A $10,000.00 Dividend Portfolio  [View article]
    This is good thinking, but most of your stocks would not pass my quality screens for such things as dividend growth history, dividends vs. the S&P 500, debt-to-equity ratio, etc. Also, I think you should compare cash yields, not stock prices. Most of us who depend on our portfolios for a living are more interested in payday than in alpha.
    Jul 15, 2014. 09:32 AM | 1 Like Like |Link to Comment
  • Debunking The 'Dividends Don't Add Shareholder Value' Myth  [View article]
    PLEASE do not continue to explain the value of dividends to these folks. If the get the idea, they will be competing with me to buy the good stuff. Better they remain ignorant and keep on buying the junk.
    Mar 14, 2014. 09:47 AM | 4 Likes Like |Link to Comment
  • Rebuttal: 'Is A House Really A Good Investment?'  [View article]
    My wife and I have owned our own home for some 48 years, and our numbers are pretty much in line with "Joe's". Last year, exhausted from maintaining the one-acre lot, the 2,600 sq.ft. house, the swimming pool, etc., we sold and moved into a nice and conveniently located condo. BTW, it is not the costs of maintaining real estate that get you down, it is the burden of managing a crew of maintenance workers, from pool cleaners to lawn guys to maintenance contractors, finding, hiring, supervising them all, and wondering if they really know what they are doing.

    All in all, accounting everything you accounted for, our investment is flat over 48 years. That is, we gained nothing over renting a home other then knowing we were in charge. Putting the difference into the same kind of portfolio we have held for many years would have made a difference in our net worth in the million+ range, very much like "Joe".
    Jul 26, 2013. 08:31 AM | 4 Likes Like |Link to Comment
  • How Gas Really Gets Priced  [View article]
    Why should gasoline be under $3 per gallon? If you object to the market price, buy less. There is no better cure for high prices than high prices.

    Oil, and gasoline, were cheap for a long time after World War II as a result of the huge effort during the war to explore for and develop petroleum reserves. This effort was enormously successful, and created a vast over-supply of petroleum and its products, causing in turn a suppression of prices. We enjoyed really cheap gasoline for more than thirty years, with a brief hiatus in the early 70's when OPEC tried to remind us of our comfortable position.

    I cannot see any rationalization for under-$3 gasoline, given the cost of production and the current level of demand.
    Mar 16, 2013. 09:23 AM | 5 Likes Like |Link to Comment
  • How Gas Really Gets Priced  [View article]
    So Scooter-Pop is saying that the CME and the NYME are accepting secret (closed) bids? That's worthy of some investigative reporting.

    Blaming high prices on speculators is a losers game.

    And keep in mind that if you look up the price of regular gasoline in the year of my birth (1935), and then adjust it for inflation since then, it comes out about $4.10 per gallon in 2013 dollars.

    Never forget inflation - that's what is keeping you poor
    Mar 16, 2013. 08:51 AM | 4 Likes Like |Link to Comment
  • How Gas Really Gets Priced  [View article]
    You do not seem to mention that both crude oil and gasoline are sold at open-outcry auctions, the most free and open market system known. Of course, speculators can bid-up the price of the lots of RBOB they buy, but if the consumer does not buy the commodity later, you will see a bankrupt speculator. The system works, and supply-and-demand still functions.
    Mar 16, 2013. 08:17 AM | 5 Likes Like |Link to Comment
  • China Is Why Gas Prices Are Going Up And Heading Much Higher  [View article]
    Obviously, since motor fuel does cost less than it did 78 years ago, the entire discussion indeed needs to be rethought. If you do not understand inflation and its effects on your buying power, you are doomed to be impoverished in retirement!
    Feb 28, 2013. 08:29 AM | Likes Like |Link to Comment
  • China Is Why Gas Prices Are Going Up And Heading Much Higher  [View article]
    My goodness! What a compendium of malinformation and paranoia! Including the article, which confuses consumption with demand, which we all understand do not proxy for one another.

    Class, here is your assignment: Look up the price of motor gasoline in 1935 (the year I was born), and then adjust it for inflation - that is, do a future value calculation using the average inflation rate since then as i, and 78 as n. You will be happily surprised to see the answer.

    Sorry, conspiracy theorists, gasoline and crude oil are sold at open-outcry auctions, the purest and most free market system ever devised. If a speculator bids above what his customers will pay, he soon is a bankrupt speculator. Free markets are wonderful that way, which is why they work, and controlled markets do not.
    Feb 26, 2013. 09:26 AM | 2 Likes Like |Link to Comment
  • CenturyLink's Management Has Lost Its Mind  [View article]
    I think Hoosier Native has it right. Cutting the dividend is simply a ploy to drive down the stock price so the buy-back can be done at the lower price. Is this legal, or is it a prohibited manipulation of the stock price? A stockholder lawsuit would help answer that. So would an investigation by the SEC, which I think is warranted.
    Feb 15, 2013. 10:56 AM | Likes Like |Link to Comment