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Graybeard44

Graybeard44
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  • Navios Maritime Partners L.P. Deserves A Closer Look [View article]
    I would also look at the preferred stock of NMM's parent company, Navios Marine (NM). There are two issues, NM/PRG and NM/PRH. They each pay about 10%, with better downside protection IIMHO.
    Feb 20, 2015. 08:26 AM | Likes Like |Link to Comment
  • Should You Buy Target's Ron Johnson Moment? [View article]
    Why is Target worth more than Walmart?

    Where would you rather shop?
    Jan 18, 2015. 08:25 AM | 3 Likes Like |Link to Comment
  • 3M: A Wonderful Company, But Not A Wonderful Price [View article]
    Canada:

    Thanks for your reply, and research into the history of MMM.

    Back in 1993, I had two kids, a business, and an aging mother who demanded daily attention. I did not have time (or,honestly, a lot of interest) in studying market conditions, or comparing the current value metrics of different companies. What I did know was that the future belonged to those who would invent it, and that 3M was the most creative big company that I knew of. I saw that 3M products were of high quality, and that they commanded premium prices in the market. I saw that they were building their business in many different industries.
    I saw that they had been paying a dividend every year for almost a century, and increasing it every year for three decades. Because their world headquarters were in my town, the local newspaper covered their important moves.

    To me, that all added up to a "no-brainer." I think that all those conditions still apply, and that 20 years from now no one will remember, or care, whether the P/E in 2014 was 18 or 22.

    I'm sorry if I've wasted your time, but I think it is important for everyone to at least consider basing their future prosperity on the ownership of the great companies who continue to invent our future world.
    Dec 30, 2014. 09:42 AM | 2 Likes Like |Link to Comment
  • 3M: A Wonderful Company, But Not A Wonderful Price [View article]
    Doc:

    Yes. GE, INTC, PHG, ECL and JNJ might be worth a look, even if they are ALL expensive.
    Dec 29, 2014. 10:55 AM | Likes Like |Link to Comment
  • 3M: A Wonderful Company, But Not A Wonderful Price [View article]
    Doc:

    My point is that in 1993, my broker made the same argument that you make today. Stocks like Schlumberger and 3M don't go "on sale" very often, and if you want to own them, you simply have to take a deep breath and dive in.

    When I bought 3M, it was at an all-time high.
    Dec 29, 2014. 10:03 AM | 3 Likes Like |Link to Comment
  • 3M: A Wonderful Company, But Not A Wonderful Price [View article]
    So, where were you with this advice in 1993(?), when I had to "arm-wrestle" my broker (who said 3M was too expensive) in order to buy it at $104.00 per share.

    Since then, those shares have split twice, and have increased my dividend every single year. Was it expensive? Perhaps. I DO know that I've never been sorry for the purchase, and that I started doing better with my investments when I stopped worrying so much about "price," and started concentrating on the future prospects of the companies in which I want to invest. Getting away from a "full-service" broker helped a great deal, too.
    Dec 29, 2014. 08:55 AM | 6 Likes Like |Link to Comment
  • 3M: A Wonderful Company, But Not A Wonderful Price [View article]
    Then you "cudda, wudda & shudda" bought in October.
    Dec 29, 2014. 08:40 AM | 1 Like Like |Link to Comment
  • General Electric: The Stealth Index Fund With Twice The Yield [View article]
    On Dec 16,2014, GE announced that the dividend (x-div date 12/18/14) to be paid on January 26, 2015 will increase from $0.22 to $0.23/share.
    Dec 29, 2014. 08:26 AM | 4 Likes Like |Link to Comment
  • 3 Blue-Chip Stocks To Consider [View article]
    During the past 6 years, GE has over $35, and well-below $10.00

    Having bought GE at both prices, I'm not the one to tell you whether $27 is a "fair" price. What I CAN say is that I strongly believe that GE is a core stock for my portfolio, and that it will continue to innovate, make money, and pay dividends far into the future.
    Nov 24, 2014. 12:43 PM | 3 Likes Like |Link to Comment
  • 3M: A Dividend-Growth Investor's Dream [View article]
    When I bought MMM in the early '90's, I had this same argument with my (non-discount) broker. If only I had listened, I would have missed out on 2 splits, and all the annual dividend increases, to say nothing of the capital gains (my cash basis is now less than $25.00/share). Alas, alas, I'm crying every quarter when I have to haul my dividend check to the bank.
    Oct 27, 2014. 08:38 AM | Likes Like |Link to Comment
  • What To Do When A Stock Reaches Your Price Objectives: An Example From 3M [View article]
    Gary:

    I guess that my comment is based on a truth that I have learned about myself and my investing prowess over the years.

    That is that when I find a great company (ie: MMM, GIS, CVX, JNJ, etc) and trade it away because I think it has "gone about as far as it can go," I find that after several months (or years) of trading other things, I am no further ahead (in total return) than if I had held my original position.

    Fortunately, I never sold my 3M stock, which has split twice and paid a good, increasing, dividend along the way. I can't sell, because my cash basis is about $25.00/share. If only all my other positions had done as well...
    Sep 17, 2014. 09:01 AM | 2 Likes Like |Link to Comment
  • What To Do When A Stock Reaches Your Price Objectives: An Example From 3M [View article]
    So, if you sell, what will you replace it with?

    For many of us who have held MMM for years, and who have doubled, quadrupled (or, in my case, more) our money, the tax consequences of selling out-weigh the possible profit so heavily that it is no longer a viable alternative.

    I would submit that owning 3M is a fundamental building block of ANY portfolio.

    Show me another company that has:

    1) RAISED ITS DIVIDEND EVERY YEAR FOR THE PAST 55+ YEARS.

    2) Set a corporate goal of generating 30 percent of sales from products
    introduced within the past 5 years.

    3) Operates around the world, providing standard-setting products in all its
    markets.

    4) Manufactures things that people (or industries) need on a daily basis, in
    Consumer Goods, Healthcare, Electronics, Electrical (think fiber optics),
    Adhesives and Tapes, etc, etc

    If there is another company like this, PLEASE let me know, I want it.

    I'm NOT an investment professional, and I DON'T give advice. It just seems to me that if there was ever a stock to hold forever, it is MMM. I WON":T SELL -- Now or ever!
    Sep 16, 2014. 08:14 PM | 4 Likes Like |Link to Comment
  • Look At These Juicy Yields - Are They Really Appropriate For Your Retirement Portfolios? [View article]
    Pendragon:

    When I first had enough cash (in my own mind) to open an investment account, I made a conscious decision to reinvest all dividends (no DRIPS), and pay the taxes on the dividend income from other sources. In that way, the investment account grew automatically. For my own purposes, I did NOT distinguish between cash that was available to invest that came from dividends from that which came from capital gains on sales of stock positions.

    While it may seem simplistic, this approach has worked quite well for me.
    Sep 14, 2014. 11:13 AM | Likes Like |Link to Comment
  • Look At These Juicy Yields - Are They Really Appropriate For Your Retirement Portfolios? [View article]
    BeHereNow:

    You are correct that the KMR div/split does not change your cash basis in the position. However, since the position is made up of more shares, your COST PER SHARE does go down.

    It is very interesting to see what happens when you sell KMR after the x-div date but before the date when the dividend is actually paid.
    Sep 14, 2014. 11:00 AM | 1 Like Like |Link to Comment
  • 3M Company Seems Overvalued Relative To Historical Averages [View article]
    There are reasons that 3M is"pricey."

    1 They are a great company, with a diversified (over 60.000 different products), in consumer goods, electrical supplies ((think fiber optics), medical supplies and equipment, industrial supplies, car parts, etc, etc, etc

    2 They are an honest company, providing good value for their customers AND good returns for their shareholders. One doesn't have to be embarrassed to admit owning 3M stock.

    3 They are an "Innovation Machine." One of the stated goals of the company is to generate 30% of sales from products introduced within the past 5 years. At the same time, they still make sandpaper (their original product) that sets the industry standard.

    4 The company has raised its dividend every year for over 50 years.

    5 The stock was trading with about a 2.5% dividend when the dividend hike was announced. Almost immediately the price was bid up to its current level, to keep the dividend return at 2.5%.

    Since I first bought the company in the early 1990's, ($104/share & $0.30/quarter dividend) it has split twice and increased in value by about 7 fold (not counting the dividends I received all along the way). I only wish that every stock I own had been as good to me over the years

    Go 3M !
    Sep 6, 2014. 11:36 AM | 1 Like Like |Link to Comment
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