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cpa28761

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  • Warren Buffett Nabs Duracell From Procter & Gamble [View article]
    >>>Then do you think PG were mistaken in their dispositions? And how would you explain them?<<<

    I don't think it was a mistake, but I have to take it brand-by-brand. In the case of Folgers, I think American tastes are gravitating to Arabica beans. Even Walmart has numerous Arabica bean coffees. PG was embarrassed every time Folgers was in a taste test.

    Edible oils are commodities. They are vulnerable to private label competition as everyone knows they are identical.

    Generally speaking, margins on grocery products are lower than those of the products receiving greater emphasis currently at PG. By those I mean OTC medications and cosmetics. UN/UL trades at a lower multiple than PG, perhaps, because a major portion of their business is grocery products. As a retail investor, that's my view from the outside in.
    Nov 17, 2014. 12:56 PM | Likes Like |Link to Comment
  • Warren Buffett Nabs Duracell From Procter & Gamble [View article]
    >>>PG's decision may simply have been the result of an assessment of the particular food brands they held, of their growth potential, and as to whether the the scale or "critical mass" of PG's food brands justified the marketing efforts and expense needed to build the distribution channels and volumes for food.<<

    PG's food business was far more than Pringles, which they sold to K, which I would NOT exactly consider a legacy brands company that lacked the capabilities and critical mass to develop brands on their own. In the 1970's, GIS tried to compete with Pringles with a product called Chippos. In the 1970's, the last box of Chippos was sealed in lucite.

    Folger's was taken from a regional brand to the number one brand of coffee by PG.

    Crisco (the original formulation) was a a technological breakthru in its day. The shortening brand was applied to liquid edible oils and was and is a leading brand.

    Duncan Hines is a leading brand of bakery products.

    Jif was made the leading peanut butter by PG.

    I really don't think PG's food brands lacked "scale" or "critical mass".
    Nov 16, 2014. 03:56 PM | Likes Like |Link to Comment
  • Johnson & Johnson: Growth-Growth-Growth; Win-Win-Win - Part V [View article]
    >>>Wish some real nasty market downturn would hit JNJ s I could stock up on it.<<<

    The flaw with this wishful thinking is that JNJ has a low beta driven by the quality and consistency of its earnings.
    Nov 16, 2014. 08:22 AM | Likes Like |Link to Comment
  • Warren Buffett Nabs Duracell From Procter & Gamble [View article]
    >>>I hold PG too for diversification, but do not consider its sectors, personal care and household products, to be as desirable as food and beverages.<<<

    What's interesting is that PG divested itself of its food businesses. They had numerous leading brands, but decided that there was insufficient growth in those lines.
    Nov 16, 2014. 12:49 AM | Likes Like |Link to Comment
  • My High Dividend Yield Retirement Portfolio's Progress: The Current Yield Is 7.4% [View article]
    >>>a loss is not a loss till you take it, same with a profit<<<

    That paradigm applies to stocks as their financial life is undefined. Bonds have maturities and, in the absence of default, they WILL and DO revert to par. Therefore, the amortization of premiums must be considered. Just because bond funds do not have the transparency to reveal this axiom does not mean that it does not exist.
    Nov 13, 2014. 03:53 PM | Likes Like |Link to Comment
  • Cramer's Lightning Round - I Curse The Day I Bought General Motors (11/10/14) [View article]
    MRK and PG are both into OTC medications. However, as investors, we are in the investing business. Therefore, we look to profit growth. I see more of it in PG than in MRK, but my reason for commenting was the Cramer comment where he put the two together.
    Nov 11, 2014. 11:17 AM | Likes Like |Link to Comment
  • My High Dividend Yield Retirement Portfolio's Progress: The Current Yield Is 7.4% [View article]
    Rebel, I would like to think you're right. However, with the market discounting the fund by over 10% vs. NAV (probably for interest rate risk) and a distribution yield of 6.36% (double tax-free), I think you are in the minority.

    I agree with you that unions are going the way of the Dodo, but in competitive environments. I was working in New York City when unions forced Mayor Michael Bloomberg to his knees in less than a week. I doubt that the situation is any different in California and I fail to see any catalyst to change it.
    Nov 9, 2014. 12:54 PM | Likes Like |Link to Comment
  • My High Dividend Yield Retirement Portfolio's Progress: The Current Yield Is 7.4% [View article]
    rebel, are we talking about Invesco Van Kampen California Value Municipal Income Trust? If so, do you feel comfortable about the preferential treatment being given to municipal unions vs. bond holders (who are getting the shaft) in the face of the precarious financial condition of so many California municipalities?
    Nov 8, 2014. 01:28 PM | Likes Like |Link to Comment
  • My High Dividend Yield Retirement Portfolio's Progress: The Current Yield Is 7.4% [View article]
    Rebel, your strategy will work until it doesn't. Then it will be Katy-bar-the-Door. "...little risk" in VCV?

    http://nyti.ms/1EbCoJZ
    Nov 7, 2014. 02:29 PM | Likes Like |Link to Comment
  • Diversifying Into Chinese Bonds [View article]
    I thought bonds were for risk-averse investors.
    Nov 7, 2014. 01:43 PM | Likes Like |Link to Comment
  • A Bigger Payday For Owners Of These 6 Dividend Growers [View article]
    HON has been one of the best performing stocks in my portfolio. However, I did not buy it for its dividend and I do not hold it for its dividend. It is a total return investment.
    Nov 6, 2014. 01:33 PM | Likes Like |Link to Comment
  • Unilever Remains One Of The Best Consumer Goods Companies [View article]
    Page 81 of the Unilever Annual Report on Form 20-F 2008 shows diluted earnings per share €1.73. I am comparing that to the "€1.66 in 2013" that you posted this morning.
    Nov 4, 2014. 09:07 PM | Likes Like |Link to Comment
  • Is Chevron A 'Forever Hold'? [View article]
    Jerry, I would love to agree with you. I am long CVX and other oils (BP, RDSB, and TOT). I am holding and may even add. However, the way the market is behaving as of this writing, the price of oil is driving both the value of the reserves and the value of the technology to bring them to market downward.
    Nov 4, 2014. 02:11 PM | Likes Like |Link to Comment
  • Is Chevron A 'Forever Hold'? [View article]
    >>>For example "can do people" in Germany are getting 17% from Sun and Wind<<<

    Petroleum products are twice the price in Europe that they are in North America. It is more than "can do". It's economically feasible to use wind and solar in Europe as it is more expensive there to use fossil fuels. With abundant supplies of oil and natural gas in North America, it is not economically feasible to use more expensive wind and solar.
    Nov 4, 2014. 09:04 AM | Likes Like |Link to Comment
  • Is Chevron A 'Forever Hold'? [View article]
    >>>Is Tesla an automaker or a technology stock? Is Ford an automaker or a technology stock? If you aren't part technology stock today you might be out of business tomorrow<<<

    You are very correct, Jerry. Given that we invest in companies for their intellectual property, all companies are technology companies. PG, from their innovations from Crisco to Swiffer, is a tech company. KMB made a major innovation almost 100 years ago and has ridden it since WWI. Aerospace companies are technology companies. Pharmaceutical companies are in technology. The term "technology" is far from limited to semi-conductors.

    With respect to oil companies, how much of their value stems from their intellectual ability to find, extract, refine, and market products, and how much of their value is derived from their oil reserves?
    Nov 4, 2014. 08:56 AM | Likes Like |Link to Comment
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