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gfmn2000

gfmn2000
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  • Do Dividends Lower Total Return? [View article]
    >>>Seems to me there comes a point in a corporate life cycle that it becomes a matter of efficiency to issue a dividend - at what point does a company actually say, "It's time to pay a dividend?"<<<

    Adam,

    Exactly, that is it.

    For my core holdings I search for financially strong, high quality dividend growth companies that distribute dividends from excess cash that is generated beyond what is needed to maintain and grow their business.

    Now when companies generate more cash than is needed to maintain and grow the business that is a good thing. The business continues to grow, earnings grow, and this fuels more dividend growth.

    Investing in these kinds of companies will reward shareholders with increasing dividends and increasing share values. In other words dividends play an important role in enhancing total return.
    May 4, 2014. 04:13 PM | Likes Like |Link to Comment
  • How Much Does Coca-Cola's Compensation Dilute Shareholders? [View article]
    >>>Buffett said that "going to war" would likely not have been productive, and that Berkshire's abstention sent an even more effective message.

    "We made a very clear statement about the excessiveness of the plan and, at the same time, we in no way went to war with Coca-Cola," Buffett said. "I don't think going to war is a very good idea in most situations."<<<

    It is being reported Buffett made the above statement when questioned about not voting their KO shares about the compensation plan. Time will tell if his message was heard and understood.
    May 3, 2014. 11:58 PM | Likes Like |Link to Comment
  • How Much Does Coca-Cola's Compensation Dilute Shareholders? [View article]
    >>>Berkshire is not, that NOT, a mutual fund!<<<

    it is not a mutual fund. but when one looks at just the 83 wholly owned companies that include insurance, railroad, candy, electric utility, underwear, paints, ketchup, natural gas, carpet, diamonds and etc, it kinda looks like a mutual fund. but you are correct it is not a mutual fund. and it has advantages over mutual funds that should help it to out perform most funds.
    May 3, 2014. 08:02 PM | Likes Like |Link to Comment
  • Do Dividends Lower Total Return? [View article]
    >>>"but on our planet, it is us and the dolphins. "
    ...and white mice<<<

    And Snow Monkeys. Saw a program recently on "Nature". There was one little snow monkey that would try to catch snow flakes with his tongue. Also he would make snow balls and play keep away. More imagination than a lot of folks I know.
    May 3, 2014. 07:19 PM | Likes Like |Link to Comment
  • Medtronic: One Of The Best Dividend Growth Ideas [View article]
    Nice analysis of MDT. This Dividend Champion is a core holding for me.
    May 3, 2014. 06:41 PM | 2 Likes Like |Link to Comment
  • How Much Does Coca-Cola's Compensation Dilute Shareholders? [View article]
    dealraker,

    On page 111 of Berkshire's 2013 Annual report shows the listing of Berkshire's Operating Companies. If I count correctly there are 83 of them. This is where the 300,000 plus employees are. In addition Berkshire holds investments in 43 additional public companies.

    4 (WFC, KO, IBM, & AXP) of the 43 positions total roughly 28% of Berkshire's total book value. So these are not a small part of the business.
    Berkshire is larger than most mutual funds and more diversified than many.
    May 2, 2014. 09:21 PM | 1 Like Like |Link to Comment
  • Exxon Mobil: 32 And Counting [View article]
    That is a nice shopping list.
    May 2, 2014. 03:14 PM | 1 Like Like |Link to Comment
  • Exxon Mobil: 32 And Counting [View article]
    Buyandhold 2012,

    Now that XOM is 23% of your portfolio will you continue to add to XOM when the market corrects? Or would you more likely invest the dividends to diversify elsewhere?

    May 1, 2014. 09:38 PM | Likes Like |Link to Comment
  • Dividend Champions For May 2014 [View article]
    David,

    I would like to add my thanks as well. Your work is appreciated by all those who simply understand the value created by a growing dividend.
    May 1, 2014. 09:09 PM | 4 Likes Like |Link to Comment
  • How Much Does Coca-Cola's Compensation Dilute Shareholders? [View article]
    dealraker,

    Calm down. I believe the "Berkshire Hathaway fund" was just a joke. But then it is bigger than about 90% of the mutual fund companies out there. And owns or has investments in over 120 companies. So maybe not a joke?
    May 1, 2014. 06:30 PM | Likes Like |Link to Comment
  • Warren Buffett, Berkshire Hathaway, And Dividend Growth Investing [View article]
    >>>that the bulk of your portfolio is currently in one or more index funds. If that is the case are these funds reflected in the numbers you report? If so, what is the performance without the funds?<<<

    Briar,

    No, the bulk (57%) of my stock portfolio is in individual stocks. All 45 of my stocks are listed in my profile (the good, the bad, & the ugly). 43% of my holdings are in mutual funds in my 401k and my wife's ira. My 401k has a brokerage option and I use it, but it is limited to about 1/3 of my 401k assets. The other 2/3 of the 401k are therefore in mutual funds (small cap value and international).

    And I am glad you asked about the fund performance vs my individual stocks. As I noted in my earlier comment above my individual stock picks (no mutual funds) have returned 11.41% per year since I started recording all transactions in Quicken (start date 5-30-1995). My mutual funds have returned 9.18% per year over those same 19 years.

    I think my individual stock picks have beaten the mutual funds for several reasons. Number one my mutual fund investments have been weekly, deducted from my check and invested whether the market is up or down or sideways. So I am averaging in. For my individual picks I accumulate contributions and dividends. Then I buy what I think is the best value. So this gives an advantage to my individual stocks. Another important reason is fees. My mutual funds average a little over 1% in fees so they start out in a hole.

    And I do not totally discard your bulls-eye model. I do think a focus on the best is important. But please remember where I am coming from. My investing experience in addition to the successes includes big loses in Worldcom and Washington Mutual. So for myself I am never 100% sure of those that seem to be squarely in the middle of the bulls-eye.  
    Apr 30, 2014. 10:00 PM | 1 Like Like |Link to Comment
  • Warren Buffett, Berkshire Hathaway, And Dividend Growth Investing [View article]
    Doug,

    Thanks. And that is a good question about the dividends. I will try and see if that can be determined.

    And for anyone wishing to compare their results with Berkshire using Longrundata.com input the symbol as BRK-A. Otherwise the symbol will not be recognized.
    Apr 30, 2014. 08:33 AM | Likes Like |Link to Comment
  • Warren Buffett, Berkshire Hathaway, And Dividend Growth Investing [View article]
    This exercise got thinking a little more. So I checked my results back to when I started using Quicken back on May 30, 1995.

    (for 5-30-1995 to 4-29-2014)
    My stocks return = 11.41% per year
    BRK.A = 12.00% (per Longrundata.com)

    Hey, I am rethinking that "I am no Warren Buffett" thing. I just need to hone my skills a little more.
    Apr 29, 2014. 10:22 PM | 1 Like Like |Link to Comment
  • Warren Buffett, Berkshire Hathaway, And Dividend Growth Investing [View article]
    >>>From what you have revealed about your operation, most of your holdings are at the outer rings: the center is empty.<<<
    >>>To switch metaphors, you are on thin ice.<<<

    Briar,
    All of your comments to me suggest I am doing it wrong. That I am somewhat "dense" I suppose (I know my words, not yours). That I need to ask "What would Warren do?" That I need to think more.

    Well I have studied Warren, and Peter Lynch and Ben and others. And my first thoughts were that I likely invest more like them than you do.

    That being said however, I began to question my methods over the last few days. Wondering that maybe it would have been better to just have invested in Berkshire.

    Well, got to thinking. I have input all my transactions (every single buy, sell, dividend) in Quicken since May 1995. So I said to myself lets check and see just how much I have cost myself.

    Moningstar (as of 4-29-2014) lists BRK.A's results as:
    1 yr=20.57%, 3 yr= 15.57, 5 yr=15.57, 10 yr = 7.49, and 15 yr = 6.37.
    My results for my individual stocks that I purchased for my own accounts as calculated by Quicken are:
    1 yr=17.37%, 3 yr= 16.86, 5 yr=20.20, 10 yr = 8.38, and 15 yr = 6.97.

    So I am quite pleased when comparing the results. Reaffirms that I am learning something. My results also were ahead of VFINX (Vanguard 500 index) for 3, 5, 10 & 15 years. I lagged both for only the 1 yr (last 12 months) period.

    Now I know you can't confirm my results, so this exercise is only for my benefit. And I know I am no Warren Buffett. That is not what I am getting at here. And maybe you are correct about some areas of my investing. Maybe I need a little sharper focus. I am thinking how much better my results would have been if I would have just reduced the major mistakes (Worldcom, Washington Mutual, First industrial etc).

    Anyways I feel that sometimes you go way around the long way to make a point. And maybe I do sometimes get lost along the way. But it does stimulate one to think. And that is a good thing. 
    Apr 29, 2014. 09:22 PM | 3 Likes Like |Link to Comment
  • When To Sell Your Dividend Stocks? [View article]
    Brad,

    Thanks for the links. My wife likes the picture. She loves Elvis almost as much as the peanut butter cups.

    I did not know of the Skylon Tower. Great view of the falls. I want that table & view if I ever get up that way.
    Apr 29, 2014. 06:24 PM | Likes Like |Link to Comment
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