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varan

varan
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  • If I Could Buy Just One Stock, It Would Be This One [View article]
    Or they can ignore this article altogether, and go to so many other inspirational and motivational articles by the heroic DGI authors on SA.
    Apr 27, 2013. 07:53 PM | Likes Like |Link to Comment
  • If I Could Buy Just One Stock, It Would Be This One [View article]
    @Conservative

    You don't understand. The performance of every DGI portfolio is better than the average performance of DGI portfolios.
    Apr 27, 2013. 12:16 PM | 1 Like Like |Link to Comment
  • If I Could Buy Just One Stock, It Would Be This One [View article]
    Of course you can always find stocks which are guaranteed to increase their dividends in the future.
    Apr 25, 2013. 10:04 PM | Likes Like |Link to Comment
  • If I Could Buy Just One Stock, It Would Be This One [View article]
    @mjs_28s
    What are you talking about? Too much DGI koolaid?

    Start with $1M in BRK-A. Withdraw $50K at the beginning of the year every year by selling some stock from 2003 thru 2013. You would have $1.15M today.

    If you started with 40000 withdrawal, you could have increased your withdrawal by 3% every year and would have $1.22M today.

    What was the problem?
    Apr 25, 2013. 06:46 PM | 6 Likes Like |Link to Comment
  • If I Could Buy Just One Stock, It Would Be This One [View article]
    I would buy IEP.

    But for the sake of diversification, an equally weighted portfolio of IEP, MKL and BRK.B.
    Apr 25, 2013. 02:08 PM | 1 Like Like |Link to Comment
  • Is Dividend Growth Investing Crippling Your Dividend-Based Retirement? [View article]
    You are not quite correct. Effective growth rate that you would use in a compounding calculator is not the sum of the dividend growth rate and the price growth rate.

    http://bit.ly/StyTpo

    Of course for every set of triples of initial yield, dividend growth rate and the price growth rate, you can compute an effective growth rate. If you use that, there is indeed no 'different set of rules'.
    Apr 24, 2013. 04:36 PM | 1 Like Like |Link to Comment
  • Is Dividend Growth Investing Crippling Your Dividend-Based Retirement? [View article]
    1% price growth and 10% dividend growth leads to a yield of 47% in 30 years.

    I would like to have that stock too.
    Apr 24, 2013. 11:21 AM | Likes Like |Link to Comment
  • Is Dividend Growth Investing Crippling Your Dividend-Based Retirement? [View article]
    Why set your site so low? MSFT would have been much better.
    Apr 23, 2013. 05:29 PM | Likes Like |Link to Comment
  • Is Dividend Growth Investing Crippling Your Dividend-Based Retirement? [View article]
    I think that most of my cohorts got sidetracked from their investment plans due to the diversion of the riches that were oh so close in sight during the dot com boom and bust that led them to believe that if they could just find the right stock(s) they will hit a home run. If they had just stuck even to a typical stock mutual fund that most people had at the time, they would have been just fine. The fraction of the people who had the prescience to buy just the right stocks was not that high, and so just from a statistical/probabilistic point of view it makes sense to not assume that you will be a member of that lucky group.
    Apr 23, 2013. 04:48 PM | Likes Like |Link to Comment
  • Is Dividend Growth Investing Crippling Your Dividend-Based Retirement? [View article]
    Do a simple calculation: look at the SP500 returns with dividend reinvested for the period 1983:1993, and the returns of 60% SPY 40% VUSTX for 1994-2012 (since SPY was available only starting in 1994). You will find that a person who started in 1983 would have a little over 950K if he had put in $5.5K per year. No need for stock selection. No need for monitoring. Just put the money and watch it grow.

    So the problem is not as daunting as it seems in the first cut.

    The trick is to stick to the plan and forget about all the noise from various articles on SA and other financial media.
    Apr 23, 2013. 03:37 PM | 3 Likes Like |Link to Comment
  • Dividends: High Yield Vs. Steady Growth Examined [View article]
    They don't? Who knew?

    If it walks like a duck, talks like a duck, etc.

    If the shoe fits and all that.
    Apr 23, 2013. 11:36 AM | Likes Like |Link to Comment
  • Passive Investing Works: A 12-Year-Old Example [View article]
    MPT: Modern Portfolio Theory

    For simple introduction, look, e.g., at http://bit.ly/17KTf6i
    Apr 22, 2013. 08:26 PM | Likes Like |Link to Comment
  • Passive Investing Works: A 12-Year-Old Example [View article]
    That is not what it means to not base the results on 'in-sample' data.

    How does it matter whether the portfolio was actually held or not (I am not evading the question- it was not 'real'), so long as you base the calculation for a given year solely on the basis of only the prior data available at the time? I assume that the purpose of your post is for readers to learn from history, and the calculation that I summarize provides one more historical perspective.
    Apr 22, 2013. 08:19 PM | Likes Like |Link to Comment
  • Passive Investing Works: A 12-Year-Old Example [View article]
    Absolutely not. The results are not based on in-sample data. For every year, only the data for the prior years was used. So for example, for 2005, only the data for the period 1991-2004 was used.
    Apr 22, 2013. 07:22 PM | Likes Like |Link to Comment
  • Passive Investing Works: A 12-Year-Old Example [View article]
    Variance minimization and re-balancing using the weights dictated by it on 1st trading day of every year based on the monthly data from 1991 thru the prior year. That is it. (Since QQQ and SPY came later than 1991, use the data for the corresponding indices.)
    Apr 22, 2013. 07:16 PM | Likes Like |Link to Comment
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