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  • Common Mistakes In The Execution Of The Dividend Growth Investing Strategy  [View article]
    JMO but I think you have your advice backwards. IMO if you feel you can only keep up with 8 stocks then you should diversify with the EFT or an index mutual fund.
    Dec 24, 2015. 12:29 PM | 4 Likes Like |Link to Comment
  • 10 Undervalued Dividend Champions For 2016: Be Greedy When Others Are Fearful  [View article]
    Thanks for the great information. I hold 8 of these and have recently added to T and EMR. BEN , ADM and PNR are three I don't currently own that look interesting.
    Dec 23, 2015. 12:45 PM | Likes Like |Link to Comment
  • MLP Midstream Stats 12/22/15  [View instapost]
    Factoids,

    Thanks for the detailed comments and for taking the time to look over my holdings. And I would say your observations are correct. I like to invest in high quality at good values. So this does lead to some imperfect diversification.

    My REIT holdings are limited but are somewhat balanced in that my wife holds the Vanguard REIT fund in her IRA. But I do want to diversify and add to my holdings here. I did hold AVB at one time and did well with it. But sold too soon. Bad decision on my part.

    You stated "But it only works in the long term if the purchases result in a winning (and diversified) portfolio mix."

    That is a good point. Sometimes it is not just about the best value but also what is the best fit when adding to our portfolios.
    Dec 23, 2015. 10:49 AM | Likes Like |Link to Comment
  • How Many Stocks Should You Own? Remember Warren Buffett's Advice  [View article]
    Raj Mehta,

    Your approach makes good sense to me.
    Dec 23, 2015. 10:10 AM | 1 Like Like |Link to Comment
  • MLP Midstream Stats 12/22/15  [View instapost]
    Thanks for the information. I have added lightly recently to names I perceive to be of good quality MMP at 61, EPD at 21.4 and SEP at 40.49.
    Dec 22, 2015. 09:30 PM | Likes Like |Link to Comment
  • Dividend Aristocrats Part 36: Illinois Tool Works  [View article]
    Nice article on a great company. Long ITW since Aug 2011 and plan to hang on for a good long time.
    Dec 22, 2015. 09:18 PM | Likes Like |Link to Comment
  • How Many Stocks Should You Own? Remember Warren Buffett's Advice  [View article]
    The risk of over diversification is settling for market average returns. The risk of under diversification is portfolio destruction. Would you rather own Washington Mutual or Worldcom as part of a 10 stock portfolio or a 50 stock portfolio?

    A small number of stocks dramatically beat the index as you point out. You are more likely to invest in one of these in a larger portfolio. The problem is that most investors sell these and do not benefit. The hindrance to beating the market is in SELLING great companies. If you hold Washington Mutual to 0 you lose 100% of that investment. If you sell one of these superstars as you call them then you can cost yourself 1000% or even much more. JMO but time is best spent in attempting to identify great companies. Otherwise then yes, just buy index funds and dollar cost average.
    Dec 22, 2015. 07:07 PM | 3 Likes Like |Link to Comment
  • Retirement Strategy: Getting Defensive By Growing Income And Even Some Growth Potential  [View article]
    >>>Being a new investor, I don't understand the strategy on forward p/e ratios.<<<

    Gary,

    Forward p/e ratios are based on today's share price and future earnings estimates. So a lower forward p/e means future earnings estimates are higher.
    Nov 5, 2015. 04:04 PM | 10 Likes Like |Link to Comment
  • Stop Hating IBM: It's Enormously Profitable  [View article]
    >>>and the stock is currently on sale<<<

    IBM is on sale because human nature makes most of us very shortsighted.
    I don't know fashion but here is my analogy. I recently bought some summer Chaps shirts from a clearance rack for 80% off ($8 for a regular $40 price). Most people paying full price for winter stuff to stay warm. Now I am fairly certain that spring will show up again so I believe I got a good deal. Same with IBM. If I am wrong I guess I will be stuck with my $8 shirts. I am long IBM and waiting on springtime.
    Oct 29, 2015. 09:34 PM | 7 Likes Like |Link to Comment
  • Gilead's Q3 Beats, The Street Shrugs: Why I'm Happy To Stay The Course  [View article]
    This is setting up nicely for a Management led buyout ... at $130 per share.

    I do not want to sell my shares for $130!
    Oct 28, 2015. 09:03 PM | Likes Like |Link to Comment
  • Risk Tolerance For The Dividend Growth Investor  [View article]
    >>>So I regard my portfolio of dividend growth stocks as safer, not riskier.<<<

    DVK,

    That is how I feel. Market values over time go up. But in between there are peaks and valleys. So I don't look at price volatility as a risk but as something to be expected. Income from a properly managed Dividend Growth Portfolio however can be expected to be a much smoother rise.

    As a Dividend Growth Investor I see my biggest risk in retirement as the limited amount of time that I will have. Will I be in good enough health and live long enough to enjoy all those dividends? So I am diversifying my retirement strategy even more by going to the gym (4 to 5 times a week) and eating better (more fresh fruits and lean meats).
    Oct 27, 2015. 10:27 PM | 4 Likes Like |Link to Comment
  • Retirees: I Did Not Buy IBM To Sell; It's About The Dividend Income, Stupid  [View article]
    >>>If you work the math a higher yield is always a better tactic then a growing but much lower rate.<<<

    Not really. It is more complicated than that. As a group higher yielding companies tend to have negative dividend growth, negative earnings growth and capital loss. An investor must be highly selective in the higher yield area as there is less room for error. There is an abundance of low quality businesses in high yield.
    Oct 25, 2015. 03:45 PM | 1 Like Like |Link to Comment
  • Our 'Dividend House' DGI Portfolio Review: Time For Renovations?  [View article]
    Dividend House,

    I love the way you are managing and building your portfolio. The focus on high quality and your attention to detail will payoff many times over.

    I like the number of holdings also. I currently hold around 55. I would like to increase that up to around 70 by retirement which is 5 to 8 years away for me.
    Oct 23, 2015. 09:11 PM | Likes Like |Link to Comment
  • Retirees: I Did Not Buy IBM To Sell; It's About The Dividend Income, Stupid  [View article]
    >>>I last bothered owning IBM in the 1980's<<<

    nicholas,

    I first bought IBM in 1989 and continued investing through the mid 1990's. Those first shares dropped over 60% in value before IBM began to recover. I sold the last of those shares in 2001 and my average annual return was 16.19% per year.

    I started buying IBM again in 2013. Again early I admit. I would not bet the farm or back up the truck or any of that. But adding it to a diversified portfolio is an acceptable investment risk I will take at this valuation. IBM is not Kodak.
    Oct 23, 2015. 08:47 PM | 8 Likes Like |Link to Comment
  • General Mills' Path To Double-Digit Returns  [View article]
    I think you are right on target.

    Just checked my returns and I have made 4 investments since Sept 2011 with average annual returns at 14.26%. I don't expect that going forward from these levels. I will be happy with returns in the 7-9% range from here. Risk adjusted that is not bad for such a great and stable company.
    Oct 17, 2015. 12:06 AM | 1 Like Like |Link to Comment
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