Semi-retired marketing and sales executive with a second career in the travel business. Actively invest an upper six digit portfolio in half a dozen mutual funds as well as a couple of stock brokerages accounts, most of it IRA. Primary goal is income with some appreciation potential.
"In a dark place we find ourselves, and a little more knowledge lights our way." -Master Yoda
I work as a Senior Associate in a Top 20 CPA and Business Advisory firm. My area of specialty is enterprise cloud software, though I have an extensive professional background in the retail and hospitality industries as well. I have been investing for over 20 years with the primary goals of a comfortable early retirement and philanthropic endeavors.
Retired Aerospace Systems Engineer and Physicist (Ph.D, Physics MIT 1965.) HaShem Enthusiast, Gardener, Photographer. My main career focus was on sensor system engineering. This often involved computer based simulation and modeling to perform design studies, system performance analysis, data assessment, and risk assessment. As the saying goes, "when a "well known physicist says something cannot be done, it will be accomplished within a year."
Early in my career, while at MIT's Lincoln Laboratory, which is physically located in the next town, Lexington (;-), I worked with ARPA's Jason Committee members. Exposure to such fine minds was quite beneficial. Members were Nobel Prize winning physicists. Next, I was fortunate to work at The Avco Everett Research Lab, in Everett (;-) AERL knew what town they were in! Our work was reviewed by Professor Hans Bethe of Cornell University, recipient of the Nobel Prize in Physics for analyzing the Carbon Cycle in the Sun. Other very important influences on my approach to analyzing problems were my High School teachers: Mr. Seltzer, Mr. Eisenberg, Mr. Martino, and Dr. Ranucci. An equally important influence was Professor Larry Spruch at The Physics Department of NYU's Washington Square College, where I was an undergraduate. He taught me how to estimate things. His thesis was that a physicist should be able to estimate anything (not limited to physics problems) to within plus or minus an order of magnitude. That's a pretty wide spread. Once you practice, you can work those limits down considerably. It's much easier today with the advent and growth of ARPA's Internet.
I have a new discovery... When financial or rather banking or economic gurus ALL say that something in their area of expertise can not be estimated, it will take (a physicist/systems engineer) less than a month. (Is it because the bankers/ financial miscreants do not know how, or they don't want you to know what they know? It makes you wonder...) Of one thing I am convinced, they do not understand how to use their risk management tools. The bankers have no understanding as to when the results they are getting with their risk managment tools are meaningful, when they are misleading at best, and when they are totally wrong...
The next thing I learned is that the purchasers of financial "products" do not spend significant time with, or even visit the manufacturing line, to see how the "product" is being put together and packaged. To understand the quality of the widget, you need to see the process. Strange they would not have done so. They relied on rating agencies, who also did not visit the issuing process of a mortgage they would actually buy - some for resale, and some to keep - because they were so profitable, in the short term, to service. This lead to such large bonuses that it warped their judgment.
If you analyze the sensor data from a data gathering mission with a sensor mounted on an aircraft, the first person you talk to should be the pilot, then the operators, then the design hardware and software engineers... Is a pattern emerging?
I recommend that the current crop of economics advisors to President Obama study Norm Augustine's laws. They need to learn how to analyze complex systems. They need to study systems engineering and develop alertness and common sense. This is the crop that has not demonstrated any of the necessary skills, and they want to keep their banker buddies on the job using pay raises and bonuses to induce them to remain. Why? You did ask, right? Beats me.
I now understand how to turn around the current recession in a clear, relatively inexpensive way. It should take six months to a year. I will be happy to do it for free if I can dole out the funds, and keep what's left over of the roughly $1.5 trillion already allocated for the financial and economic equivalent of remedial reading. Those funds won't generate any sustainable jobs. The word "sustainable" is very important. No one will deny that. I have not seen anyone else say they know how to do it. Am I an ego maniac? I doubt it. Any reasonably bright four year old could figure it out. Such a person has not been trapped into the demonstrably incorrect assumption set, outmoded ideologies, and failure laden modes of thought of the members of the President's council of economic advisors...
Buy and hold, common stock investor focused on dividends and on value. Interested in various stocks that are suitable for long-term dividend investment. A Buffett admirer, but not a Buffett cultist, and not quite as creepy as my name implies - though certainly cash-centered!
I'm a long-time investor who has transitioned from 2,000+ trades a year, to a longer-term portfolio management method. I have an eclectic portfolio, as do many of you. I blend EXTREME INCOME holdings, PLUS lower-yield dividend growth stocks in our retirement accounts (buffered by significant cash reserves).
Recently I added a third leg--the weekly sale of covered calls on volatile stocks, gathering large premiums each week as the options expire (or roll them over...OR let the shares get called and start fresh the next Monday.). I often carry short positions to buffer downturns.
(I want to offer a "hat tip" to two special investors who have influenced my methods: "WmHilger1" and "GGjr", both on this site. You want to learn about Extreme Income investing, or selling covered calls on aggressive stocks? Read their posts and comments and come away a better investor.)
I want my OVERALL portfolio to grow via reinvested income; I spend some and reinvest some.
I'm agnostic as to the source of the income (as long as it's reasonably sustainable).
Most of the time, I use leverage to boost returns in my taxable accounts. This has hurt at times; most of the time it has been a positive. I try to stay under 50% margin; I'll exceed that on occasion. Note my accounts are at IB, which has dirt cheap margin rates.
For Extreme Income, I like various Pimco CEF's; selected other CEF's; NLY; ORC; STON; VGR; OKE. Most of these are "lifetime holds", unless some severe adverse development occurs.
In my "Plus" (DGI) retirement accounts, KO, GIS, GILD, JNJ, HSY, GSK, CL and others. These have a ten-year hold, with all dividends reinvested. It's our "Private Pension" for my wife, who is younger than I am and has more accumulation time than I do.
For the final leg of my 3-legged investment stool, I sell covered calls
each week to speculators who want to gamble on short-term stock price
movements; I play the bank for them. Many of these options expire
worthless. Some of the stocks I use are ETE, ETP, EPD, QCOM, WMT, BX and
others. For lower risk call selling in my wife's leveraged account, I
use ETF's like XLK, XLP, XLI and others with weekly options. This income
generation method takes more work than the others; it's worth it if
Note neither the holdings nor methods are recommended for others. They work for me.
NOTE: the formatting of my Profile is totally screwed up. It's not me; SA seems to be having trouble with its new, "better" site. Apologies for their issues here.
Hewitt Heiserman Jr. conceived the Earnings Power Chart, which is the subject of his book "It's Earnings That Count" (McGraw-Hill, 2004).
Mr. Heiserman is a member of the Boston Security Analyst Society and the CFA Institute. He has been quoted in TheStreet.com, The Wall Street Journal, BusinessWeek, CBS MarketWatch, Business 2.0, Better Investing, The Motley Fool, Complete Growth Investor, Barron's, and the Haverford Trust Company Adviser.
Mr. Heiserman has spoken to the New York Society of Security Analysis, the Boston Security Analysts Society, Babson Investment Management Association, the American Association of Individual Investors, Fidelity Management & Research, Complete Growth Investor, Bryant College and Franklin-Templeton Group on "Ben Graham and the Growth Investor." He also serves as an instructor for Gerson-Lehrman Group.
A stock-picking screen Mr. Heiserman created for Motley Fool based on methods described in his book has turned a hypothetical $10,000 investment made at the beginning of 2005 into $32,000 at the end of 2009, excluding taxes and trading costs, or 26% annualized. In contrast, a $10,000 investment in the S&P 500 grew to just $10,321, or 1% annualized. To learn more, click here: http://www.fool.com/investing/general/2009/12/28/let-scrooge-make-you-rich.aspx
Mr. Heiserman graduated from Kenyon College with Distinction in History. He was also awarded Kenyon's Faculty Award for Distinguished Achievement. Mr. Heiserman is vice-president of an open land foundation. An Ironman triathlete finisher (Lake Placid, 2010), he qualified for and competed in USAT's 2012 age-group national championships. Mr. Heiserman is an Eagle Scout and Order of the Arrow recipient. He has climbed the Grand Teton and Mount Rainier, and has also bicycled across the United States.
In 2014, Columbia University will publish Mr. Heiserman's second book, The Checklist Investor. Mr. Heiserman also publishes Checklist Investor Quarterly, which shares the Internet's latest and best tips for improving stock-picking success.
Ham n Egger level investor that is paddling along slowly trying to manage my portfolio. Closer to retirement than not, but haven't punched out yet. Somewhat Income/Divvie oriented. I appreciate the gang tackle approach here with everybody trying to wrangle a buck out of the market.