poortorich

poortorich
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  • Asset Class: Using the S&P 500 sector breakdown as a target  [View instapost]
    Tweedt
    I looked at your investing philosophy a little bit more closely. I think your methodology is very sound. I see that you were influenced by William Bernstein. Although his book The Pillars of Investing was one of the first books i read, I did not totally agree with what he wrote . My memory is a bit fuzzy right now since its been so long, but essentially he believed in indexing and assett allocation. I believe you took his ideas a little further and dove into individual stocks. You also mentioned that capital preservation is of paramound importance to you. By implementing Bernsteins ideas and putting a "Tweedt" twist, you've come up with your own way. I think that's what many self-taught investors do.
    Great job!
    Apr 15, 2011. 12:43 PM | 1 Like Like |Link to Comment
  • Want to Seek 'Significant' Alpha? Look Beyond Dividend Stocks  [View article]
    Tweedt
    Good job. I think your prediction of rotation into healthcare may be coming true.
    Apr 15, 2011. 10:14 AM | 4 Likes Like |Link to Comment
  • 15 'Bubble' Stocks Ready to Crash Like It's 1999  [View article]
    Never short stocks that are trending up. You may be correct about the final outcome. But a trend may persist longer than you think. The trend is your friend until it bends.
    Apr 14, 2011. 11:18 PM | 5 Likes Like |Link to Comment
  • Coca Cola: Attractive Upside at No Cost  [View article]
    Alex
    No not at all. I was half teasing you. In my early investing career, I too was interested in real estate and did as much reading as possible on it. My parents have apartment buildings. The conclusion i reached from my readings and seeing my parents was that it was not for me. The returns you get for the amount of effort you put into it was just not that appealing. Thats not to say that one can't make money doing it. I think its wise to know about all forms of investing, including real estate.
    Apr 14, 2011. 07:24 PM | Likes Like |Link to Comment
  • Coca Cola: Attractive Upside at No Cost  [View article]
    Alex
    I read your profile again. What are you doing dabbling in real estate?
    Apr 14, 2011. 06:48 PM | Likes Like |Link to Comment
  • Coca Cola: Attractive Upside at No Cost  [View article]
    Well said Alex.
    I will make this prediction. If intrinsic value goes up, price will eventually follow. If the market is dumb, it may take a while. If the market is smart, it won't take too long. For us investors, we hope the market stays dumb for a very long time.
    Apr 14, 2011. 06:35 PM | Likes Like |Link to Comment
  • Want to Seek 'Significant' Alpha? Look Beyond Dividend Stocks  [View article]
    Robert
    You are such a likable guy. I really mean it.
    Apr 14, 2011. 03:59 PM | 2 Likes Like |Link to Comment
  • Want to Seek 'Significant' Alpha? Look Beyond Dividend Stocks  [View article]
    Before I may have, but now I try not to disclose what i own in my growth portfolio or what i may buy. I don't want to appear to be arrogant when they do well and pumping them when they are not doing well. Even my wife does not know what we own.
    Apr 14, 2011. 03:42 PM | 4 Likes Like |Link to Comment
  • Want to Seek 'Significant' Alpha? Look Beyond Dividend Stocks  [View article]
    I'll chime in.
    The more you know about business in general (i'm not talking about investing), the better you will get at identifying potential multibaggers. Thats why i feel people who have started their own business, with the proper equity education will make outstanding investors. SA authors present many companies, but only a handful catch my eyes immediately.
    My general rules
    a)If you don't want to stress out, stick to dividend investing. This is the surest path to financial independence long term (Here's to you Robert)
    b) if you decide to explore growth investing, make sure you use money you will not need for at least 5-7 years because thats how long it could take for some multibaggers to unfold. The price may sit there for several years and then bang, it doubles.
    c) don't ever be in a situation where you need to sell these to pay your expenses. If you put yourself in a situation like that, thats just like overleveraging
    d) i'm pretty convinced that an experienced growth investor will outperform dividend investing. So why am i not doing it exclusively? Because i need dividends to pay my expenses. I also want fresh money coming in regularly to invest
    e)when i get profits from a multibagger, i allocate a certain percentage and permentaly depositi it in a buffett/type of company. The rest of the money i allocate in a new potential multibagger
    f)How do you know if its a multibagger? Often times you don't until after the fact. But with more experience, your hitting avg definetly goes up.
    g)be careful, because you could be playing with fire. I have seen many people try this and fail and never come back to investing in stocks. With dividend investing, you have comfort of TANGIBLE evidence of your efforts because of the growth of dividends.
    Apr 14, 2011. 12:21 PM | 12 Likes Like |Link to Comment
  • Clorox: Dividend Stock Analysis  [View article]
    I too place the predictable earning power of a company above everything else. Obviously, i look at other factors too, including amount of debt etc.
    Apr 14, 2011. 11:20 AM | 2 Likes Like |Link to Comment
  • Q1 2011: The S&P Is Fairly Valued  [View article]
    Armando
    We just have to agree to disagree.
    By the way, traders like you are very helpful as i said because you guys provide good liquidity. It also magnifies the volatility, which makes stocks often grossly overvalued or undervalued. I'm assuming you have a computer that triggers your trades.
    Good luck.
    Apr 14, 2011. 11:18 AM | 4 Likes Like |Link to Comment
  • Want to Seek 'Significant' Alpha? Look Beyond Dividend Stocks  [View article]
    Chuck
    Exactly. Some degree of valuation is always important. When a company starting from a small size is increasing its earnings very rapidly, its hard to get a handle on its intrinsic value. You just need to be roughly in the ball park because the rapid rise in intrinsic value will cover your mistakes. This is where it becomes more tricky for investors. Contrast this with a nice steady dividend paying company where valuation is much easier.
    Apr 14, 2011. 10:05 AM | 4 Likes Like |Link to Comment
  • Want to Seek 'Significant' Alpha? Look Beyond Dividend Stocks  [View article]
    Let me add one more point. The fatal mistake people who are incubating multibaggers make is automatically assuming the multibagger will keep on multiplying. When you get to a certain point, the law of size takes over and to grow more, you undooubtedly encroach on a well established encumbent. Good luck with that.
    Apr 14, 2011. 09:50 AM | 2 Likes Like |Link to Comment
  • Want to Seek 'Significant' Alpha? Look Beyond Dividend Stocks  [View article]
    Chuck, when you said "the investor does not need to be good at those things". I agree wholeheartedly with that. Investing in these companies is like I said more art than science.The fundamental analysis camp may thumb me down for saying this.
    Selling is the hard part. But with some experience ,good knowledge of the company and some common sense, you kind of know when to sell.
    Apr 14, 2011. 09:41 AM | 2 Likes Like |Link to Comment
  • Dividend Investors Should Favor Pepsi Over Coke  [View article]
    Both will deliver good returns. Its only a matter of price.
    Apr 14, 2011. 08:04 AM | 2 Likes Like |Link to Comment
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