buffettjunior's  Instablog

Folks I have been LONG stocks now for more than 10 years and have been at least 115% INVESTING

I have averaged about 19% annually compounded

The stock market hasnt been this inexpensive besides in the last month of 2008 and the first 7 months of 2009 since 1994

Find the RIGHT stock at the RIGHT price and get 'INVESTED"

Courage is not the absence of fear its the CONQUEST of it

Why is it so important to develop your own dividend machine? This multiple part article should help you come to the realization that few investors do until it is too late: The importance of building your own dividend machine

A 25 year old whose portfolio is only thirty thousand dollars, can buy a stock  with a dividend of about 8.5% The twenty seven hundred dollars of annual dividends should double about every 9 years at least. With no further investment this particular dividend machine should return over eighty six thousand dollars annually at age seventy. Sound impressive? By reinvesting dividends the first fifteen years this amount should be well over two hundred thousand dollars annually at age seventy. How many of your friends do you think will have done that? Not bad for a one time investment. See the importance of a dividend machine now?

What happens if you don't have the thirty thousand dollars to get started ?Borrowing the money from a loved one or relative is a great alternative. Many parents, grandparents and loved ones loan money to a child for an automobile or school which may or may not have a future tangible value. Giving your loved one their "inheritance" early may create a permanent dividend machine that can be transferred for many generations to come

Wharton School of Business professor Jeremy Siegel said that about 97% of the gain of the Dow since 1900 has been from reinvested dividends . Only 3% was caused by capital gains. Yet many"gamblers" ,disguised as value investors ,have lost hundreds of thousands of dollars, investing in financials like AIG ,Bear Stearns and others. Their mistake is concentrating ONLY on capital gains and not dividends.

Disclosure: No positions

Today with Dodd's bill and Bernanke and Volcker on the hill logic should dictate that the market not rise again

However ANYONE who thinks they know EXACTLY what the short term market will do is either FOOLING themselves or trying to FOOL YOU

I have to admit it is getting harder to find bargains as it was a few months ago

The trick now is to find stocks that have NOT participated in this rally and catch them while they are out of favor

I have my eye on a few which i will share with you when it is appropriate to do so

the 10 year is down to 3.64

We are NOT getting any correction or even pullback if rates continue to stay this low

As the dollar weakens the "inflation" trade on gold commodities and equities should stay high

Today the oil inventories are coming out

Oil prices and 10 year rates BOTH need to stay"low" to keep this economy on course

Also Obama care passing will "influence" this stock market

This bill being scuttled will give the market a jolt and passing the bill will cause it to pullback

Odds are about 50-50 according to my sources