I am an individual investor and the author of seven eBooks on dividend growth investing. I try to help self-directed individual investors profit from stock investing. I contribute articles and studies to both Seeking Alpha and Daily Trade Alert. I hold an undergraduate degree in physics from Holy Cross College and a JD from Georgetown University. My wife Sue and I live in beautiful Canandaigua, NY.
If you are interested in any of my digital utility solutions to add to your investing tool box to improve your investment outcomes, please visit my site
You'll find elegant applications that make it simple for you to track your portfolio in real time, make a watch list to follow in real time, track your dividend income and growth, and other applications. These applications will allow you to set alerts at prices you choose in order to obtain the yield and income that you want. They function as real time trade assistants and will improve your investment performance. You can even mirror the successful FTG Portfolio with "My FTG Mirror Calculator", and subscribers can mirror the premium subscriber portfolio with "MY RODAT Mirror Calculator" if they wish to emulate the out performance we've achieved in capital and income growth.
I am a retired clinical psychologist, and administrator and owner of a rehabilitation clinic we founded 40 years ago. For over 55 years I have managed several portfolios composed of investments accumulated over our professional careers. Since the financial crisis of 2008, I have employed specialized, customized dividend growth strategies aimed at enhancing and growing a dividend income stream.
Since December 24, 2014, I have demonstrated on Seeking Alpha the ongoing construction and portfolio management of the Fill-The-Gap Portfolio aimed at highlighting strategies investors may utilize to close the gap between an average Social Security benefit and the much greater costs faced in retirement.
This portfolio has outperformed all of the broad market indexes by a very wide margin, growing dividend income and total portfolio value consistently while the broader indexes struggle in negative territory all year.
Aside from free articles available to the general public, additional early-access, value-added ideas and deep-dive articles are offered to paid subscribers on my premium SA platform, "Retirement: One Dividend At A Time"
Let me show you how to build and grow your portfolio and dividend income, step by step, towards a comfortable and secure retirement.
Bob is retired from a career in law enforcement including more than 20 years as an instructor of Investigative Interviewing. He is a Dividend Growth investor using dividend yield from low beta stocks for income and preservation of capital. Bob has self managed his portfolio since early in 2011. He hopes to encourage discussion among those already in retirement and receiving income from their portfolios.
My curent portfolio is available here: http://seekingalpha.com/article/3969664-difference-quarter-can-make-1st-quarter-portfolio-review?source=all_articles_title
I believe that everyone needs a portfolio business plan. Here's a copy of ours:: http://seekingalpha.com/article/2426965-our-retirement-portfolio-business-plan-legacy-edition-part-two
A list of Dividend Growth Safety Superstars for the past decade is available here: http://seekingalpha.com/article/2255863-a-review-of-the-dividend-safety-superstars http://seekingalpha.com/article/2266863-a-current-review-of-dividend-safety-superstars-part-two
Dividend Growth Investor since 2011.
In July 2013 we moved from a managed account with a mutual fund, stock and bond portfolio to our own Dividend Growth portfolio. I am still evaluating the current portfolio holdings as they fit in our DGI "Plan".
Update: June 2015 I am now fully retired and am following our plan for life long financial independence. Retirement and financial independence are two different life goals and as such should be treated differently. Now when I check our discount brokerage account I now look at the cash being generated rather than the total value. This income generating plan seems to be working just fine as dividends are being used to support our day to day life. We currently have a 4.1% yield, 4.4% YOC and 6% dividend CAGR.
My Father was a DGI for over 70 years and my parents lived off the dividends for over 30+ years showing me the way forward.
I continue to read S/A articles daily and am still learning from the many dedicated authors.
I volunteer my time to our High School First Robotics Team. It is amazing what these students can do over the 6 week build season.
There are certain stocks I will not buy and I like to have stocks of products we use. For example when we pay for gas the dividends from XOM, CVX and COP pays the bill and BCE, RCI and VZ pay for phone and internet. You get the idea. If there was only a good dividend vacation stock... Maybe CNK.
I am long on the following: Comments welcome on my holdings.
Info Technology; AAPL, CSCO, GOOG, GOOGL, MSFT, WU
Telecommunications; BCE, RCI, T, VZ
Financials; AFL, BRK-B, CB, PRU, TMP, USB, ORI
Industrials; CHRW, CSX, DE, EMR, GE, IBM, MMM,
Consumer Discretionary; CNK, DRI, LEG, MCD, SJR
Consumer Staples; CPB, KMB, KRFT, PEP, SYY, PG
Energy; COP, CVX, XOM, RDS.B, KMI, HP
Healthcare; JNJ, MDT, MRK, PFE, SNY
Utilities; D, DUK, PPL, SO, WEC, XEL, SCG
REITs; DLR, HCP, KIM, O, OHI, VTR, WPC, NNN
MLPs; SXL, ARLP, PAA
BDCs; MAIN, PSEC**
CEFs; GOF**' NIO** DMO**
* Being evaluated for sale and reinvestment.
** Speculative 1/3 positions
Oct2013 - Bought DLR on the dip hoping for a bounce.
Oct2013 - Sold EXC at a loss and bought XEL. EXC (left over from my adviser)
Jan2014 - Added ARLP to my wife's IRA, TGH and KRFT to taxable account on Jan dip
Jan2014 - Added VTR by taking the profits from WLP and STJ (left over from my adviser)
Feb 2014 - Added T on a dip at 32 ( I wanted this stock for many years and finally pulled the trigger.)
July 2014 - Sold LOW and AMAT, took profits and added to my SO holding in taxable account.
Sept 2014 - Sold TSCDY and VDC in our taxable account.
Sept 2014 - Sold VDC in my trad IRA and added HCP.
Oct 2014 - bought more XOM on the recent dip.
Dec2014 - bought more CVX and T on the recent dip.
Sold TGH, IBM at slight loss
Dec2014 - will transfer 50% of my 401k to trad. IRA. Let the buying commence.
March 2015 - All 401k money has been transferred to TIRA
Since Jan 1 2015 I have added to the following positions on limit orders to maximize value.
DUK, VZ, O, RDS.B, CVX, EMR, JNJ, VTR, WPC, OHI, HCP, DLR, PEP, T, KMB, RCI, PPL, GE
SCG, MAIN, NNN, PG, PAA, HP, NNN, ORI, (PSEC, NIO)**
Purchased KMI, KO, UTG, JNJ, MAIN and GILD on the Aug 24th "Flash Crash". Great bargains!
Dec 2015 sold BRK-B and WU at a gain to offset the KMI loss.
Jan 2016, Added my TGT, MMM, EMR and SCHD for my wifes IRA.
My name is Ted Leach. I'm a 65-year-old investor focused on dividends in a Retirement Income Portfolio. I'm not yet in the distribution phase of retirement. After serving as a pastor for 40 years, I'm in a second career and I have two part-time jobs. As Director of Community & Property Care, I'm part of a management team that oversees 123 residential retirement units in multiple locations for a non-profit organization. I also serve a large congregation as a part-time associate pastor.
I've been a member of the National Association of Investment Clubs (NAIC) since 1982, which now operates as BetterInvesting.org. For many years as a volunteer I helped lead workshops to teach tools developed by NAIC to educate investors about how to do basic fundamental stock analysis. I continue to have a strong interest in investor education.
NAIC's historic "four principles" have been very helpful to me:
1) invest regularly throughout your lifetime;
2) invest in growth companies;
3) reinvest earnings and profits;
4) diversify by industry and size.
Bill Bengen's "4% Rule" concept inspired me to set a goal to create a retirement income portfolio of individual dividend growth stocks as a way to tap only dividend income from the portfolio as long as possible rather than selling assets.
Here is my current 25-stock portfolio:
- 5 stocks each with a 5.2% target allocation: JNJ, XOM, MSFT, PG, MMM
- 5 stocks each with a 4.4% target allocation: WMT, MRK, IBM, CMI, GPC
- 5 stocks each with a 3.6% target allocation: EMR, SO, WEC, CNP, HCP
- 5 stocks each with a 3.0% target allocation: PEP, T, O, EPD, WPC
- 5 stocks each with a 2.4% target allocation: UNP, NNN, STAG, MAIN, EVA.
Helpful mentors and colleagues include:
- Charles Allmon, former columnist for Better Investing, taught me to look for growth stocks
- Ben Graham's The Intelligent Investor taught me the importance of intrinsic value
- Peter Lynch instilled confidence that the average citizen can win in the stock market
- Louis Rukeyser demonstrated how to ask probing questions about market conditions
- Brad Thomas introduced me to a host of real estate investment trusts
- Bob Wells' analytical discipline keeps me focused on dividend growth
- Lowell Miller's The Single Best Investment helped me focus on quality and safety
- David Van Knapp's holistic style of portfolio building helps me see the big picture
- David Fish and Factoids inspire me to keep digging for data
- Chowder reminds me that each buy is the purchase of a business
- BDC Buzz has helped me sift through business development companies
- Tom Konrad opened my mind to alternative energy investments
- George Fisher is a helpful "lookout" scanning the horizon for utility opportunities
- The Seeking Alpha community--both veterans and young contributors.
I am a Civil Engineer, who is married with two young kids. In 2013 I took a more active role in managing my IRA for retirement and decided to publicly share my experiences in building the portfolio as an example for the dividend growth investing strategy.
My interest in investing mostly began in 2005 when I started up an investment club with a few friends from college and has accelerated as I've been reading and learning along the way. Since then, investing and the stock market has become a passion and favorite hobby and I've enjoyed writing about stocks and sharing ideas I have here on Seeking Alpha.
My investing goals are to build a nest egg for retirement and fund college education accounts for my kids. I invest mainly in dividend paying stocks that have shown a history of consistent growth in earnings and dividend payouts.
On October 31st, 2014, I retired. Turned in the keys to the company car, gave them my computer and my account lists and joined the ranks of those who "slipped off into the sunset." I never thought in retirement that I would be this busy. It's fun. Time with the grandkids, time to perfect my cooking skills, and time to travel and check off the things on my bucket list. I should have done this a long time ago.
I am a retired professor, a retired investment adviser, and currently a private investor and full-time tennis pro. I bought my first stock in a custodial account in 1958. I am a student of history, particularly military and economic/market history. The intellectual passions of my retirement years are markets, mathematics, and quantum theory. I like to travel. I served in Vietnam.
Seeking Alpha's transcripts team is responsible for the development of all of our transcript-related projects. We currently publish thousands of quarterly earnings calls per quarter on our site and are continuing to grow and expand our coverage.
The purpose of this profile is to allow us to share with our readers new transcript-related developments.
SA Transcripts Team
An entrepreneurial generalist who has served principally as a business leader and consultant in the information technology, communications, and business services arenas. Now retired, a stock picker and writer who enjoys writing about the semiconductor memory industry, among other things. When I'm not doing that I'm backpacking, cycling, and playing with my grandchildren.
Anthony is a private investor and Owner/Author of the blog The Struggling Millennial, which is geared toward today's generation of young adults and their struggle to achieve financial independence. Anthony prides himself on being self-taught and self-made, and regularly encourages individuals to take control of their own lives through the use of simple, straight-forward investment principles that the average person can understand and actively use to evaluate the financial health and performance of their investments.
Anthony is an electrical engineer who works full-time managing multi-million dollar projects for one of the larger construction firms in the Philadelphia area. Anthony believes the most difficult part of our individual journeys toward success and freedom is simply building the courage to get started, but once started, if we maintain our persistence, the sky is the limit.
John Petersen is executive vice president and chief financial officer of ePower Engine Systems, Inc., a company that has developed, built and demonstrated an engine-dominant diesel-electric hybrid drivetrain for long-haul heavy trucks that promises fuel savings of 25 to 35 percent depending on terrain and payload.
John is a lawyer and accountant with over three decades of corporate finance, due diligence, M&A advisory and related legal services for manufacturers, innovators and investors in the energy storage and renewable energy sectors.
Over the last eight years John has earned a global following for his articles on the energy storage and alternative energy sectors. He has contributed to AltEnergyStocks, Seeking Alpha, The Street, NASDAQ.com and Batteries International Magazine. He currently works as a senior editor at InvestorIntel.
John is a 1979 graduate of the Notre Dame Law School and a 1976 graduate of the W.P. Carey School of Business at Arizona State University. He was admitted to the bar in 1980 and licensed to practice as a CPA in 1981. John’s diverse experience in corporate finance, natural resource development and energy storage give him a unique and sometimes unsettling perspective on the technical, economic and supply chain challenges of the battery industry.
Seeking alpha has been one of the "go-to" sites for the investors in our family. We would like to strike a perfect balance between short term trading and long term investing, hence the name "Tradevestor".Good luck investing. In the interest of full disclosure, this is a group account handled by Father and Son. The Father was a trader for quite a few years years with mixed returns, while the son started out a few years ago with DGI and has slowly convinced the Patriarch towards investing rather than trading.
Disclaimer: Please do your own due diligence before buying or selling any stock. Ideas and thoughts presented in the articles are not professional recommendations.
Don Dion (email@example.com, @DRDInvestments) is the owner and Chief Investment Officer of DRD Investments, LLC, based in Naples, FL. and Williamstown, MA., a family office focused on managing a long/short hedge fund, real estate assets, venture capital, and various other financial assets for the Dion family. Don no longer manages money for other families or institutions after selling Dion Money Management to NYC-based Focus Financial Partners in September of 2007 prior to the Great Recession. Don remains one of the largest individual shareholders of Focus Financial Partners.
Mr. Dion is the managing trustee of the Dion Family Foundation, which focuses on helping individuals with tuition assistance at Catholic Institutions for grammar school, high school, and college education. The foundation also helps individuals by supporting health care institutions, particularly Massachusetts General Hospital. Don is on three leadership and advisory committees at Massachusetts General Hospital and the Home Base Program (a partnership between Mass General and the Red Sox Foundation). Don consults with Saint Dominic's Academy and served on the executive committee as a trustee of Saint Michaels College.
In addition, Mr. Dion is the retired publisher of the Fidelity Independent Adviser (http://www.fidelityadviser.com/) family of newsletters, which provided a broad range of investor commentary on the financial markets, with a specific emphasis on mutual funds and exchange-traded funds. With more than 90,000 subscribers in the United States and 29 other countries, Fidelity Independent Adviser published two monthly newsletters and one weekly newsletter. Its flagship publication, Fidelity Independent Adviser, was published monthly for 16 years and reached over 60,000 subscribers.
Mr. Dion is the sole founder and retired C.E.O. of Dion Money Management (http://www.dionmm.com/), a fee-based investment advisory firm for affluent individuals, families and nonprofit organizations, where he was responsible for setting investment policy, creating custom portfolios, and overseeing the performance of client accounts. Founded in 1996 and based in Williamstown, Massachusetts and Naples, FL., Dion Money Management managed over $900 million in assets for clients in 49 states and 11 countries, He fortunately sold the company to Focus Financial Partners on September 1, 2007 prior to the Great Recession.
Mr. Dion was the Chairman and C.E.O. of Litchfield Financial Corp. "LTCH" a NASDAQ listed company which he founded with Summit Partners in 1988. LTCH went public in 1992 and was acquired by Textron Corp. "TXT" in 1999 for $183M of cash consideration.
Don was the Executive Vice President, C.F.O., shareholder and General Counsel for Bluegreen Corp. "BXG" a NYSE company from 1986 to 1988.
Mr. Dion graduated with honors from Saint Michaels College in 1976 with a B.S. degree in Economics and Business Administration. He received his J.D. degree from the University of Maine Law School in 1979 and his LL.M. degree from Boston University Law School in 1982.
After law school, Mr Dion was employed as a tax and estate planning lawyer with the Boston firm of Warner and Stackpole from 1983 to 1985 and Ernst and Young as a C.P.A. from 1979 to 1983.
Recently, Don has been spending some of his time researching and strategizing about IPOs, building on his prior experience of successfully taking companies public and six strong years of U.S. IPO returns (2009 to 2015).
Mr. Dion can be reached at firstname.lastname@example.org.
I participated in the creation of financial derivatives, beginning with the introduction of Eurodollar and Standard and Poors futures at the CME, and including the secondary market trading of OTC swaps. I have established and managed trading desks in these instruments and managed MHT Futures, Inc., one of the first bank subsidiaries to clear futures. Today I teach and write about the need for market-based innovation in these seriously flawed markets.
Founder of insidewallstreet.org uncovering select special situation stocks.
California Real Estate Broker
Author of the erotic novel based on a true story " In Search of a Soul Mate"
CEO and President of Gibralter Financial and Real Estate Services from 2001 to 2008.
CEO of All Valley Mortgage 1993-1995
Private investor, Author and trader from 1999 to present.
I am a retired investment adviser. I write a blog that concentrates on dividends and income. In my web/blog I profile dividend stocks that I call Dividend Machines because they are safe and deliver ever increasing income. High Yield Bonds bought at par or below and covered calls on dividend companies are additional sources of income that individual investors should learn to use and that I discuss on my site. My ideas and historical data are free to readers. The Money Madam
Andrew Walker, CFA, is a portfolio manager at Rangeley Capital LLC with a focus on small cap special situations investments. Mr. Walker also contributes to Sifting the World, a value investing forum.
I am a 29 year old father of three, active duty US Marine. I began investing with my retirement in mind and mostly focus on reliable dividend paying companies. I enjoy writing for Seeking Alpha to share my ideas and create discussions with fellow investors. I firmly believe that investing should be made more approachable to the masses and strive to keep my articles simple yet informative. Being on a "fixed" but stable income and lone "breadwinner" in the house creates interesting dynamics and greatly impacts my investing approach. I currently hold in no particular order:
PFE, CMI, AAPL, RTN, BAESY, NKE, UA, DIS, CSX, EMR, F, O, MO, UL, SBUX, EML, CGNX, HRC, DOW, XOM, T, VOD, CSCO, SYF, ORI, GLW, TATT, KTOS, JOUT, GLBL.
I like writing about all sorts of companies in all sorts of sectors. Recently I've been focusing my writing and even investing dollars on micro/small cap defense facing companies. I will always try to keep it simple and understandable, please hit "Follow" if you would like to read my articles in the future.
DISCLAIMER: I am not an investing professional. As a result anything that I write should not be taken as investment advice as it is my personal opinion at the time. In addition, I am not your fiduciary nor do I understand your personal financial situation. Please perform your own due diligence on any potential investment decisions.
Retired Pharmacist. Call me Rose. Nose= Knows enough to know I need to keep learning and keeping a great dividend paying nest egg growing upwards.
My 83 stock portfolio is listed here by sector, largest holding by value is listed first.
Consumer Defensive: KO, PM, GIS, MO, TGT, KMB, DEO, PG, PEP, MDLZ, CLX, CL, KHC, HSY, UL.
Consumer Cyclical: MCD, SBUX, GPC, NKE, HAS, MAT, VFC, HOG, HD
Healthcare: JNJ, ABBV, CVS, AMGN, CAH, BDX
Healthcare eREITs : OHI, VTR, HCP, HCN, NHI, CCP.
Energy: XOM, CVX, OXY, VLO,
Tech: AAPL, ADP, CSCO
Tech eREIT: DLR
Industrial: BA, UNP, MMM, CMI, CAT, GWW, NSC, LMT.
Industrial eREIT: STAG
Financial: TROW, MA, V, WFC, MET
Other eReits: WPC, O, XLP, UBA, STWD ,WPG
REIT Hotel: CLDT
mREIT: ARI (very very small position) and NRZ (also small)
BDCs: MAIN, PNNT, HTGC, ARCC, NEWT (small)
Telecom: VZ and T
Utility: SO, XEL, WEC, D, MGEE, DNP, CNP, LNT, FE
DNP is a CEF which predominately holds Utilities.
Jeff is the President of NewArc Investments Inc., manager of both individual and institutional investments. Jeff is a registered investment advisor, and portfolio manager for NewArc's investment programs.
Jeff is a former college professor with a hands-on, real world attitude. His quantitative modeling helped inform state and local officials in Wisconsin for more than a decade. A Public Policy analyst, he taught advanced research methods at the University of Wisconsin, and analyzed many issues related to state tax policy.
Jeff began in the financial business as Research Director for trading firm at the Chicago Board Options Exchange. He investigated anomalies in the standard option pricing models, taught classes for beginning options traders, and developed new forecasting techniques. In 1991 he established a general research consultancy, working with professional traders at all of the Chicago financial exchanges. In 1998 he started NewArc Investments, Inc.
Jeff has a commitment to the specific needs of individual investors. It is not a one-size-fits all approach, but one that emphasizes the unique circumstances of each client.
Jeff also serves on the board of two small technology companies (currently Chairman at one). He is occasionally as an expert witness in legal cases involving financial markets and hedging.
Adelphi Venture Capital invests in private and listed companies.
Over 30 years in the industry enables insightful equity research that provides alpha for readers.
I hold a Graduate Diploma in Applied Finance and Investment (similar to CFA), and a Graduate Diploma in Financial Planning.
I have 30 years of personal investing experience, and 15 years of professional financial advising experience, including broking experience at ETrade Australia, 7 years as a Senior Financial Planner at Commonwealth Bank of Australia and 8 years at High Net Worth Financial Advising. My business is a mix of young clients growing their wealth, pre-retirees, and retirees wanting income, some growth, and safety.As a global investor I use a macro thematic approach searching for good value and/or high growth. I search the globe for great investments with a focus on Asia, Emerging and Frontier Markets as well as "trend investing". I assess a countries demographics and growth potential. Some trends I currently follow include Chinese shares going global, the rising Asian middle class, Electric Vehicles, Renewable Energy, Energy Storage, Smartphones, 3D printing, and personal robots.
I also love to invest in income producing investments that can grow over time and benefit from compounding....Included here are the near monopoly businesses such as the Stock Exchanges, and the high quality income producers.
I use direct shares, ETFs, mutual funds and some direct property investments.
Time management is essential to monitoring a 47 position portfolio. My 1st comment concludes with "Rich-unck:xx hrs"; I uncheck from the article to avoid repetitive comments, nonsense, and (most) arguments. I extend another XX hrs when I respond to a question or comment...I also respond to all PMs.
BACKGROUND My journey as a self-directed investor (SDI) began in 1973, and resulted in financial independence at age 52, which also allowed me to retire from corporate life the following year (Feb 1995).
I have no special knowledge not attainable by others who also dedicate themselves to the study of the economy, market, and stocks...I could cease all portfolio management today, and place it with a professional manager; however, I enjoy the psychic and financial rewards. Alternatively, I could become a passive investor via mutual funds and/or index ETFs (those works too! ). With few exceptions, As a rule, Rich only discusses his IRA here--it is only a portion of his and Joyce’s investment assets.
INVESTMENT PHILOSOPHY If you ‘lived for today’ over the past 5 or 6 decades, you better invest in lottery tickets. The most probable path to a financially secure retirement is the product of an investment program (either active or passive) started when relatively young; living on less than all your after-tax income (saving means delayed gratification); and either self-directed or via professional management, adopting a sensible strategy suitable to age and comfort zone. There is wisdom in flexibility, diversification, and not being life-long wed to any strategy. It is appropriate to take greater risk for greater rewards (sensible growth stocks) when younger, as those are our lowest earnings years combined with our highest expense years--in the years between early investment and retirement, investments in solid growth companies can double 8 times or more.
There is time to adjust allocations to a more conservative strategy when closer to retirement. Never assume you have an information edge over the professionals. Time-in-the-market is your principle advantage. When/if you become interested in dividend stocks, never forget both price return and dividends compound, and price more so.
Financial independence is achieved when one has sufficient confidence his/her lifestyle will not change significantly, regardless of the potential depth or breadth of decline suffered by their portfolio--including a prolonged series of bear markets such as 1929-37. True, the recent 18-month bear market ending mid-2009, was deep--but also too brief to consider its lack of widespread dividend cuts to be as proof a portfolio of dividend-payers won't suffer income losses in a more prolonged decline (i.e., no portfolio is "dividend bulletproof").
The balance of this profile is lengthy, and likely not helpful to passive investors who simply go along for the ride, their portfolios bobbing up and down like flotsam in the ocean; their course always subject to the whims of winds, waves, and trends...THIS IS YOUR ONLY WARNING!
PORTFOLIO GOALS Now in my 70s, it’s no longer appropriate to engage in the growth strategies applied in wealth accumulation. As a more conservative investor, 100% of his portfolio consists of dividend-payers. 95% of positions have investment grade credit ratings (the lone exception is a REIT).This combination, along with having companies in 10 of the 11 S&P GICS sectors (none in Materials at this time) provide a measure of diversification. This IRA portfolio holds no bonds, though bonds and other investments are held elsewhere.
Maximizing total return and wealth preservation are mutually exclusive. A key observation: Having the capacity for risk is not the same as having the tolerance for it!
Rich’s objective is now a ‘smoother-ride’ that levels out the market’s peaks and valleys (limit losses, trim notable excess valuation). That smoother ride in an all-equity portfolio cannot be achieved without active management and continuous monitoring of positions--therefore TIME is an essential input to his portfolio management. Active management does not’ means frequent changes, as it is not unusual for a quarter or more to pass between a trimming or sale (nonetheless, when a company fundamentals change, or a mistake is made, corrective action is taken.)
STRATEGY SINCE 2008 Rich targets both legs of TOTAL RETURN (distributions + price change). His Growth & Income strategy often focuses on VALUE investing tactics applied to dividend-payers. Value investors seek out unpopular, companies most investors are avoiding (i.e., fundamentals have declined but credit rating is strong, BoD has implemented a rational recovery plan, and the dividend not in danger). Value investors seek to be paid to wait for other investors to recognize the stock’s value and assign it a greater share price. In any event, value stock or growth stock, Rich always seeks a ‘margin of safety’--no shares are bought at prices >FV, and his margin of safety is derived from dividends paid, price appreciation, and rising FV over time.
In all cases, value or growth, Rich selects well-established dividend-paying companies having a high-probability of growing earnings (growth of earnings is ESSENTIAL to growth of price and dividends). He tends to be flexible, forward looking, reactive to changing fundamentals, and willing to admit a mistake so action follows.
SDI is not easy, success is not assured, and in recent decades, advice from academics, and investment coaches, almost universally recommend index funds. Those NOT having the prerequisite time and interest are unlikely to develop the requisite skills for stock investing--thus the probability strongly suggests most newbies would be better served by indexing (Ben Graham wrote favorably of indexing). However, when done successfully, self-directed stock investing can offer rich psychic and financial rewards.
CORE PORTFOLIO Presently, +/-30 equities. Core holdings dominate at about 65% of total portfolio positions. Favored are traditional, large- and mid-cap, low-beta, best/near-best in class, institutional-owned, moaty, dividend-paying, value and growth stocks, having investment-grade debt ratings, and representing the consumer staples, healthcare, utilities, and telecom sectors.
OPPORTUNISTIC PORTFOLIO The remaining 15+ positions consist of equally well-known dividend-payers found among widely-owned cyclicals, such as financial, industrials, consumer discretionary, technology, real estate, and energy sectors are sensitive to the economy. In an expanding economy, cyclicals typically grow their earnings (and dividends) faster than do the typically slower-growing core companies. But because the reverse is also true, in a contracting economy, these positions are intended to be heavily trimmed to preserve gains as the economy peaks and shows evidence of decline. Some are susceptible to quite significant price declines when Mr. Market assumes their will suffer reduced earnings, and sometimes dividend-freezes/cuts, in anticipation of those events.
Rich is sometimes fully-invested, but unlike some, observes no such rule. Building a large cash cushion at the front-end of a correction/bear market (-20%) provides the dry powder required to both cushion the market's decline, and also creates the cash required to purchase excellent companies at below FV prices (without having to sell a position he wants to keep!).
TRIMMING POSITIONS When positions in either portfolio become significantly overvalued, they are trimmed by 5-10%, and the proceeds applied to fairly valued companies before the (almost always) temporary gift of over-valuation reverts to the price mean. If the position continues to advance, and absent other information, the position will be trimmed again. Added benefits to selective trimming include (1) serves as a more sensible method of rebalancing (as opposed to automatic--professionals do not use such a meat cleaver); (2) reduces the position's remaining Capital at Risk (which may suggest room for additional shares within an otherwise full position), and (3) provides the necessary dry powder to buy other shares at FV or below.
OTHER INTERESTS As we age, the importance of family grows. Rich has long volunteered in his community; over the years has served with distinction as member/chair of a number of advisory committees. Assisting others on SA is also a source of satisfaction and fulfillment.
Finally, having been blessed by years of excellent investment performance, Joyce and Rich have long been avid world travelers, and have visited over 60 countries over a span of 30 years (his SA avatar reflects the Taj Mahal in his sun glasses). They reside in Michigan--for 9 months of beauty, bliss, and family, and thoroughly enjoy wintering in equally beautiful Naples FL--for 3 months of sunny warmth and relaxation.
Life is good--it's been an unbelievably awesome ride!
Feel free to message me privately about my real-time subscription service.
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I am a former financial communications programmer, turned full-time investor. I began investing in the mid-1990s, looking for a way to achieve early retirement. (A goal in which I have succeeded, if you don't consider full-time investing a job.) I took a scientific, experiment-based approach rather than a studious one. I feel that this approach, combined with my extensive programming work in financial markets and directly with traders has given me uncommon contrarian insight into what really drives market dynamics.
To that end, my articles will center around stocks and their derivatives because that's where I have the most experience (over 20 years). I may occasionally comment on currencies, where I believe I have a sound academic knowledge, but less trading experience.I will always refer to a company by name or some abbreviation thereof. By contrast, I will refer to the stock a company issues by its ticker symbol. I think it can be important to differentiate between the two.
Independent banking research, focusing on large U.S., Australasian and European banks. I identify long and short ideas and trading strategies around special events (CCAR).
To benefit from independent insights and quality analysis from a banking insider - subscribe as a "real-time" follower above.