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AlbionWood

AlbionWood
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  • Closed End Funds: Total Return Or NAV Return? [View article]
    Also CEFAnalyzer.com - very useful screener.
    Jul 23, 2015. 10:39 AM | 1 Like Like |Link to Comment
  • Apple beats estimates, guides light; shares fall [View news story]
    Dan Scott - And Every.Single.Quarter. since then...
    Jul 21, 2015. 11:10 PM | 2 Likes Like |Link to Comment
  • Why Yield On Cost (YOC) Is An Important Metric [View article]
    Bee - Exactly. Why make it more complicated?
    Jul 17, 2015. 12:08 PM | Likes Like |Link to Comment
  • Why Yield On Cost (YOC) Is An Important Metric [View article]
    I'm not in any "camp" and try not to be too disparaging of others who are sincere in their efforts. Yet I do understand the frustration of those who debunk YOC every time it is mentioned, only to see it touted again and again. Those who have any education in accounting, finance, or economics are understandably annoyed when they try to explain the concept of "sunk cost" and why it is irrelevant, only to be either ignored or told to "leave us alone."

    If an author simply admitted that he likes looking at big YOC numbers and the resulting emotional boost improves his well-being, I'd have no problem, and congratulate him. But when an author uses examples that actually show how YOC is preventing him from achieving his stated goal, I can understand why some others jump in with derisive comments.
    Jul 16, 2015. 07:37 PM | 9 Likes Like |Link to Comment
  • Why Yield On Cost (YOC) Is An Important Metric [View article]
    kdellama's examples are clear and instructive. If you read them and still do not see that YOC is preventing you from increasing your income... then I guess we're done here.
    Jul 16, 2015. 07:02 PM | 1 Like Like |Link to Comment
  • Why Yield On Cost (YOC) Is An Important Metric [View article]
    "The goal is to get as much income as fast as possible. "
    If that's really your goal, then you have just demonstrated why YOC is not only unimportant, but actually damaging to your investment success. There are two fundamental errors in the way most people, apparently including you, use YOC:

    1. Yield is not really the important metric - INCOME is your goal. Yield varies with price, which has nothing to do with your income stream.

    2. Your purchase price is irrelevant as soon as you own a stock. (This is true whether you are a DGI or TR investor.) What matters is the future potential, in your case, for income growth. Except for tax consequences, your purchase price should be ignored when contemplating buy/sell/hold decisions.

    As an example, your discussion around the Hershey example clearly shows that you would be willing to give up current (and future) INCOME in order to maintain a higher YOC on a stock you already own.

    The tail (YOC) should not wag the dog (Income).
    Jul 16, 2015. 06:58 PM | 3 Likes Like |Link to Comment
  • Seeking Alpha Contributors And Commenters Pick The Best Dividend Growers For The Next 5 Years [View article]
    5% load is a big bite! Unless you are starting with more than $500K they are going to take a whack out of your principal, and then nibble away every year as well. It's unlikely this fund will outperform strongly enough to make up for those fees.
    Jul 3, 2015. 01:56 PM | 6 Likes Like |Link to Comment
  • Seeking Alpha Contributors And Commenters Pick The Best Dividend Growers For The Next 5 Years [View article]
    Well, you can take all the money out of an IRA at any time, it just costs you a lot in taxes. This is one of the calculations we have to make to decide whether to convert a Traditional to a Roth: whether the one-time tax bite out of the conversion will be more or less than the long-term tax savings on distributions from the Roth. It's a tough call because a lot depends on assumptions for which we have little reliable basis.

    Sometiems we let the tax "tail" wag the investment "dog," meaning we worry so much about the tax implications that we lose sight of the overall goals. For me the goal is maximizing spendable money, so I will have to figure the tax implications for each decision. For others, the goal might be to leave a nice chunk to their kids, in which case I think the tax consequences are less important.

    someone - I think it was David Fish - went through a detailed analysis of his plan for converting an IRA to a Roth over a period of several years, post-retirement, showing how to provide continuing annual increases in spendable money over the long haul. Realy insightful articles.
    Jul 3, 2015. 01:27 PM | 2 Likes Like |Link to Comment
  • Gilead's Predicament: Revenue And Earnings Are Unsustainable [View article]
    "This is the first I've learned that the US is rationing medicine. "
    Are you serious, or was that tongue-in-cheek?

    Medicine in the US has always been rationed, and still is. That's what insurance companies (and Medicare) do. Someone has to.
    Apr 29, 2015. 11:50 AM | Likes Like |Link to Comment
  • To Answer Naomi Rose I Spoke With The Top Scientists At SeaWorld [View article]
    "If the truth was the whales were being treated poorly, then park traffic would suffer." Since park traffic is in fact suffering, then I guess you have to conclude - from your own reasoning - that the whales are in fact being treated poorly.

    All the corporate spin glosses over the simple fact that confining such creatures is inhumane. Just because we can, doesn't mean we should.
    Apr 29, 2015. 11:06 AM | 10 Likes Like |Link to Comment
  • Gilead Sciences Reminds Me Of Apple Circa June 2013 [View article]
    "The post office has a monopoly on letter postage, yet looses billions a year."

    Not really true. FedEx and others also deliver letters, so the "monopoly" isn't complete; and USPS is not able to set its own prices, because they are overseen by a hostile Congress. It would be more acurate to say that Congress forces the USPS to lose billions. This has been a cynical but politically clever move by one political party to destroy Americans belief in their government institutions.
    Apr 16, 2015. 02:37 PM | 3 Likes Like |Link to Comment
  • General Electric: What A 15% Higher Price Means For Returns [View article]
    Huh? I guess that would be possible, if you also assume GE plays dividend catch-up by accelerating dividend increases from 2017. But how likely is that?
    Apr 14, 2015. 10:20 PM | 3 Likes Like |Link to Comment
  • Caterpillar Is A Buy At These Levels [View article]
    gio - Thanks for that. Seems more likely than contrarian's doomsday scenario.
    Apr 13, 2015. 01:17 AM | Likes Like |Link to Comment
  • $48k Per Year With A Half A Million Portfolio [View article]
    "YOC is a better metric for me. " Great, but it's useless to your readers.
    Apr 12, 2015. 01:43 PM | Likes Like |Link to Comment
  • $48k Per Year With A Half A Million Portfolio [View article]
    I was disappointed to see YOC in your first table, because it is utterly meaningless to everyone but you. Fine for you or I to use YOC as a measure of our individual progress, but pointless in articles for the general public. It's especially confusing to see YOC next to "Value" (by which I assume you mean "market value"), since these two figures are unrelated.

    Please note this is not a rant against YOC itself, which is well-plowed ground. It's a plea for authors to be more judicious about presenting it in articles like this.
    Apr 12, 2015. 01:39 PM | 1 Like Like |Link to Comment
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