captainccs

Crops Headed for a Tough Harvest

Crops rotting on the ground? Buy fertilizer for the next season.

10 by 10: A New Way to Look at Dividend Yield and Growth

Dividend reinvestment is a good idea only if the underlying stock is your best buy at the time of the reinvestment -- it might or it might not be.

I love the 10 by 10 math, it's a great guide. But one must not forget that the company has to be able to cover the growing dividend from earnings and cash flow. Can the company grow at the required rate? Again, advantage to high dividend yield companies provided the dividend is well covered by earnings and cash flow.

Buy and Hold Is Alive and Well

>>>Well I’m growing tired of it, and if it were up to me, I’d prohibit anyone else from making this point for the rest of 2009.

You would probably also abolish free speech and the rest of the Constitution. Oh well... If you are tired, take a nap!

If the market tanks by 50% then 50% of your stock market wealth has disappeared down a rat hole. It might or might not come back. If you had GBLX you faced bankruptcy. GBLX never bounced back. If you had Bear Stearns you got a $10 pittance from the US taxpayer courtesy of the NY Fed. What is so wrong about protecting yourself from these misadventures?

Just because you and Buffett like LTBH does not mean that this is the obligatory way to put your money in the market. Some people (not me) make money by doing the opposite, shorting!