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citizenleung

citizenleung
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  • The Decline of Google [View article]
    So what if Google lost to Baidu in China? Let's see Baidu replicate its success in any place other than China. I give their chances somewhere between 0 and 0.000001%.

    Google's wise to get out of China. It's more a business decision than an ethical one. China woos foreign multinationals with the siren song of outlandish growth and low labor costs. Actually, China's out to steal as much IP as possible to build companies to compete with the foreign companies--first domestically and then abroad. That's the true cost of doing business in China, and more and more companies are adjusting their strategies or leaving.
    May 17 10:22 AM | 19 Likes Like |Link to Comment
  • Debunking The 'Dividends Don't Add Shareholder Value' Myth [View article]
    Chuck is not saying that companies that do not pay dividends are bad or that dividend paying companies are better than those that do not pay dividends. He is merely saying that dividends are good, and that statement is neither silly nor pointless. It is a simple fact.
    Mar 13 04:43 PM | 15 Likes Like |Link to Comment
  • Why Accomplished Dividend Growth Investors Can Ignore Price Volatility [View article]
    You will always win some and lose some in the market. If you focus on dividend growth stocks, you will likely win a bit more and lose a bit less. I'd take that deal.
    Mar 21 04:34 PM | 14 Likes Like |Link to Comment
  • Is The Perfect Storm Here? [View article]
    " ... China, where capitalism now thrives unfettered."

    This statement reveals stupidity, foolishness, or ignorance (or perhaps all three). The Chinese leadership is currently hard at work constructing the next 5-year plan. The plan will be executed by state-owned enterprises that march to Beijing's orders. Very capitalistic.

    Are you so deep in Tea that you've lost your common sense?
    Jul 20 12:49 PM | 14 Likes Like |Link to Comment
  • The Case for an Imminent Correction [View article]
    The author is talking about contagion, not H1N1. Do you know what a metaphor is?
    May 4 03:34 PM | 13 Likes Like |Link to Comment
  • The FHA is raising its mortgage standards, with requirements like larger down payments and higher credit scores. Normally this would be a good thing, but since the majority of buyers are first-time home buyers using FHA financing, the FHA's timing could have a pretty big impact on the still-anemic housing market.  [View news story]
    First time buyers should thank their lucky stars at the low rates. If they need help beyond that, they should be renting.

    The suggestion that the FHA's timing could have a "pretty big impact" is laughable. The only effect is that there will be better loans.
    Aug 15 02:16 PM | 12 Likes Like |Link to Comment
  • I Love My 'Magic Pants' And My Partners Wear Them Proudly [View article]
    You just don't get it, do you.

    The Nifty Fifty fell because of absurd valuations, not because they are blue chips. If dividend stocks fall in similar fashion, it will because they are vastly overvalued. Throughout the fall, DGIs will continue buying and receiving dividends and companies will continue raising dividends.

    Why do you think Buffett loves market corrections?

    Rising interest rates will slaughter bond funds much more than dividend stocks. The bond funds that in which the likes of Swedroe believe deserve a 10-40% allocation because infallible studies tell them so.
    Mar 20 07:47 AM | 11 Likes Like |Link to Comment
  • I Love My 'Magic Pants' And My Partners Wear Them Proudly [View article]
    @varan

    "However, I am fascinated by the aspect of human behavior that leads people to immediately attack him when he writes something that does not comfort them."

    You say that the comments are attacks. I say that people are calling out Swedroe on his bull. Seriously, can you fathom the mental jujitsu required to simultaneously support efficient market hypothesis and follow the greatest exploiter of market inefficiencies? I wish I could be right all of the time, too.

    One group that Swedroe definitely does not comfort is his clients. How can one look a client in the eye, tell the client that minimizing expenses is a pillar of his investment philosophy, and then turn around and charge him a fee to invest him in funds that themselves charge fees?
    Mar 19 09:15 PM | 11 Likes Like |Link to Comment
  • Why Google (GOOG) increasingly considers Facebook a mortal threat: "The company that controls the traffic gets the power and the money... Social networks drive an ever increasing share of traffic on the internet, and that traffic is power and money." The threat is to Google's standing as the central internet company "that everyone gravitates around."  [View news story]
    I find it funny that people complain about Google's privacy issues when they voluntarily vomit everything about themselves onto Facebook.
    Apr 22 11:56 AM | 11 Likes Like |Link to Comment
  • Bank of America: Why It's Scary Being a Bank in America [View article]
    Running a profitable bank is not rocket science. How hard is it for a bank to lend at a higher rate than it borrows, charge fees, do due diligence on its loans, and not overleverage?

    Sensing a friendly political environment, the big banks convinced the government to allow them to run wild. Instead of acting as banks, the big banks put all their energy into lending recklessly, gaming the markets, and peddling exotic financial products. We are all reaping the consequences of three decades of poor decision-making--in Washington and at the banks.

    Big banks cry at lost profits, but how real were those "profits" anyway? How can an industry of pushing paper back and forth grow from 3% of the S&P 500 in 1990 to 22% in 2006? If big banks make less money than they have in the recent past, we will all be better for it.
    Jul 19 11:46 AM | 9 Likes Like |Link to Comment
  • Dividends And 'The Magic Pants' [View article]
    "It's amazing what beliefs people will hold onto simply because they are long held and they have much vested in the belief. They find it hard to accept even the obvious because somehow it goes against their accepted beliefs."

    The same can be said about your beliefs. You remind me of the Laputans in Gulliver's Travels--your reliance on seemingly irrefutable logic and reason result in ideas that are ridiculous when applied to the real world. We do not live in a fantasy world in which humans are robots and every investment decision is governed solely by arithmetic. Emotions frequently cloud our judgment. Dividends operate as a buffer to soften the blows during the down times and to reinforce discipline during the good times. They help investors and companies perform better.

    Until your fantasy world becomes a reality, I will stick with Carnevale's view of dividends over yours.

    "Do dividend fans believe it is wise for the company to take on more debt in order to fund new projects and also maintain its dividend?"

    When interest rates are as low as they are right now, yes--as long as the company does not become overleveraged.

    "And since done properly diversification is the only free lunch, you might was well eat as much of it as you can."

    One can easily develop a 20-25 stock portfolio of quality dividend-paying stocks diversified among industries and currencies--one in which adding even the best non-dividend-paying company would not meaningfully impact the portfolio's performance.

    "[Dividends] are not as tax efficient as home made dividends."

    Not mine. Given continued contributions, continued dividend growth, and continued dividend reinvestments, my wife and I are looking at over $100K a year of tax-free dividends in our Roths when we retire.

    "And while some companies spend cash unwisely, many others, like Berkshire Hathaway for example, have never paid a dividend - and I don't think anyone would argue that investors would have been better off if BRK.B had paid dividends."

    Thanks to Buffett's acumen, Berkshire is the exception rather than the rule. Berkshire is a lazy fallback for people who claim dividends don't matter. Use examples of the "many others" you cite if you want your point to be taken seriously.
    Mar 18 11:05 AM | 8 Likes Like |Link to Comment
  • Over 2M iPhone 5 units have been sold thus far in China, Apple (AAPL) boasts. China Unicom's (CHU) healthy pre-order activity probably had a lot to do with this figure. Sparse crowds for the Friday launch stoked fears initial sales were light, but weather and pre-ordering requirements seem to have played a role. For reference, Apple announced in September over 5M iPhone 5 units had been sold 3 days after the device went on sale in the U.S., Japan, and 7 other locales. (PR[View news story]
    Cook didn't announce this to support the stock--they announce great sales figures regardless of whether the stock is zooming up or collapsing.

    That's one of reasons I like Apple--they treat the fools on Wall Street the way they deserve to be treated.
    Dec 16 10:24 PM | 8 Likes Like |Link to Comment
  • The 9 Elite Dividend Stocks of 2010 [View article]
    Interestingly, these stocks do beat the market. You might not have as much fun doing so, but you'll be under less stress, too.
    Sep 22 03:44 PM | 8 Likes Like |Link to Comment
  • Hold Your Nose and Buy BP [View article]
    "... I hope BP doesn't drag out the court cases for a decade ... ."

    BP will drag it out, and will end up paying pennies on the dollar.

    When have people ever been anything but speed bumps on the road to progress and growth?
    May 4 07:23 PM | 8 Likes Like |Link to Comment
  • Retail bear emerges on Starbucks earnings call [View news story]
    Just wait until Bezos starts Amazon Cafe, which will deliver your caramel macchiato by drone.
    Jan 24 12:56 PM | 7 Likes Like |Link to Comment
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