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varan

varan
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  • Building A Winning High Yield Portfolio [View article]
    Possible turnover every four weeks is a bit too frequent. What happens to the performance if you update less often, say, once a year?

    Thanks.
    Sep 25, 2013. 12:32 PM | Likes Like |Link to Comment
  • Analysts Continue To Use Wrong Benjamin Graham Formula [View article]
    really? then why go through the exercise of computing numbers that may be unreliable for the purposes for which they are intended? if it is just a question of faith, you are talking about religion rather than anything else.
    Sep 24, 2013. 02:18 AM | 1 Like Like |Link to Comment
  • Analysts Continue To Use Wrong Benjamin Graham Formula [View article]
    ha! but they [abusers of Graham formula] also say that the intrinsic value "need not be precisely defined." So you can never prove them wrong.
    Sep 23, 2013. 06:44 PM | 2 Likes Like |Link to Comment
  • Leveraging Utilities For Stable Equity Income [View article]
    Thanks. The performance of both FIW and PIO is considerably inferior to that of the portfolio of the eight water utilities since 2008, the first full year during which both of the ETFs were available.
    Sep 23, 2013. 02:46 PM | Likes Like |Link to Comment
  • Leveraging Utilities For Stable Equity Income [View article]
    What do you think of water utilities? The portfolio of AWR, AWK, WTR, ARTNA, CTWS, MSEX, SJW and YORW has done better than, for example, FIUIX, XLU, IDU, UTPIX or UTF during the respective lifetimes of any of the latter group of funds, with much lower volatility, although the dividend is a bit lower. I cannot find an ETF or mutual fund that primarily contains just these eight stocks.
    Sep 23, 2013. 01:54 PM | 1 Like Like |Link to Comment
  • DIY Dividend Investors Club (Part 3): Picking The Best Consumer Staple Stocks [View article]
    FDFAX has returned 79% in the last five years - slightly more than the equally weighted portfolio of GIS, CLX, WMT, KO and MO.

    After looking at the returns of a number of portfolios mentioned by various authors on SA I wonder if well chosen mutual funds - which are much derided in these forums - are not that bad after all.
    Sep 22, 2013. 03:37 PM | Likes Like |Link to Comment
  • How To Calculate The Intrinsic Value Of Your Common Stocks: Part 1 [View article]
    @wstanleyr

    My original comment was directed not at the article itself, but only at Mr. Carnvale's reaction to the reference to a book which is merely a survey of various valuation methods (and their performance and some case studies), and, in my view, should be an essential reading for any one who wants to use valuation models for his or her investment decisions. I neither have the background nor the interest to find fault with the article. Perhaps my statements should have been more moderate in light of the author's subsequent clarifications (which I did not have the ability to anticipate) on his view of the book, which obviously is written by someone who understands very well the difference between physical laws and empirical models such as those used for valuation.
    Sep 22, 2013. 12:54 PM | Likes Like |Link to Comment
  • How To Calculate The Intrinsic Value Of Your Common Stocks: Part 1 [View article]
    Thanks Chuck.

    I am quite stress free, thank you, for a retired life in sunny San Diego is immune from such minor tribulations. My comments basically are designed to expand the readers' horizons, gently suggesting to them to be not boxed in by ideology and dead habit especially when it comes to investing. SA allows me to post the comments, and I do it; otherwise, I will be glad and content to hold my peace.
    Sep 20, 2013. 02:17 PM | 9 Likes Like |Link to Comment
  • How To Calculate The Intrinsic Value Of Your Common Stocks: Part 1 [View article]
    Damodaran's book, mentioned above and inexplicably and quickly dismissed as esoteric, is pretty good even for MPTphobes, as it has a good survey of various valuation models including Graham's, and does not even discuss MPT in the context of those models. This website supports one of the few books he has written, and it has a number of spreadsheets as well.

    http://bit.ly/w4jRpw~adamodar/

    [ pages at stern dot nyu dot edu slash tilde adamodar slash]

    (Click on Books and Support on that page which takes you to various books on valuation that the author has published.)


    Just as Mechanics did not stop at Newton, even Graham would have welcomed the books like Damodaran's. As usual in many fields, the followers seem to be more dogmatic and orthodox and protective of the turf than the founders.
    Sep 20, 2013. 01:36 PM | 7 Likes Like |Link to Comment
  • Dividend Growth Investing: A Prospective Study [View article]
    I agree. Nothing is permanent. There are some valid reasons for SMA based allocation to work, as it has done in the past, but they may vaporize in a microsecond in this age of HFT.
    Sep 19, 2013. 02:19 PM | Likes Like |Link to Comment
  • Dividend Growth Investing: A Prospective Study [View article]
    I agree. It is up to the readers to decide. The writers owe it to them to provide unbiased information that is relevant for them to make a decision.

    I use something other than 10 mo SMA VUSTX/TLT system, and it has worked well for me.

    I hung around the DGI articles to get some concrete unbiased information on the performance to make informed decisions, but aside from your article and previous Jeff Paul's articles, usually did not find much that is usable. Quotations from Buffet and Munger and Graham and exhortations to make a plan and to buy the stocks when they are undervalued as measured by some measures with no systematic empirical evidence of their prior effectiveness - inspirational and motivating as they are - and stories of someone's personal portfolio admirably and admittedly doing very well do not do it for me.
    Sep 19, 2013. 01:01 PM | 1 Like Like |Link to Comment
  • Dividend Growth Investing: A Prospective Study [View article]
    Try the 10 mo. MA system with VUSTX/TLT on sells rather than cash.

    As I have said before, this (PTI's) study is very good and useful inasmuch as it gives a very concrete set of numbers to the readers who want to choose (or divide their investment dollars between) one strategy or the other. I would have liked to see more analysis of the results in terms of maximum drawdowns and of various measures of risk adjusted returns, but that would be too much to expect, as the DGI people hardly believe in anything other than income.
    Sep 19, 2013. 12:11 PM | Likes Like |Link to Comment
  • Linn Effectively Admits To Misleading Investors And Announces Key Accounting Changes [View article]
    Since the author says that the 'defenders' have been proved wrong even if LINE goes up by 500%, it is clear that his musings are for purposes other than to provide some guidance to the readers on their investment decisions.

    Since the ostensible purpose of SA is to provide facts and opinions that aid the reader in making investment decisions, it is not clear as to why the author writes on these pages. Perhaps a Journal of Unfalsifiable Forecasting, if it exists, would be a more appropriate forum.

    I have not ever traded in LINE, but am quite enamored of Mr. Kostorhyz's writings which are very entertaining in their intentional hyperbole and sensationalism and are therefore unintentionally very funny.
    Sep 19, 2013. 11:55 AM | 29 Likes Like |Link to Comment
  • Linn Effectively Admits To Misleading Investors And Announces Key Accounting Changes [View article]
    Do these developments justify the original characterization of LINE as a Ponzi scheme?
    Sep 19, 2013. 10:19 AM | 6 Likes Like |Link to Comment
  • Dividend Growth Investing: A Prospective Study [View article]
    OK. Amazing.

    How many buyouts and mergers were there and when?

    Morningstar results include dividends.
    Sep 18, 2013. 10:18 PM | Likes Like |Link to Comment
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