Send Message
View as an RSS Feed
  • Retired Investors: Is It Time To Consider A New Investment Strategy? - Part 3  [View article]
    Since I'm still in accumulation mode, most of my weighting decisions fall into where to allocate the inflow of capital to my accounts.

    To that end, I'm not sure I have a hard weighting "rule" but instead am following a sort of Darwinian method.
    The strong (good dividend growth), I feed.
    The lazy (slow dividend growth/freeze), I cull.
    The weak (dividend cutters), I slaughter.

    As a result, My weighting/balance seems to work itself out.
    Jul 12, 2013. 06:21 PM | 8 Likes Like |Link to Comment
  • An Example Of Achieving 'Critical Mass'  [View article]

    The mosquito is the unofficial state bird!

    Anyone visiting, given a chance, should attend a "Hobo Jim" performance.
    Jul 3, 2013. 04:49 PM | Likes Like |Link to Comment
  • An Example Of Achieving 'Critical Mass'  [View article]

    "Dividends are not a substitute or an augmentation of savings. They are part of the total return. Without reinvesting all profits (both dividends and realized capital gains) your portfolio returns will not compound."

    I don't think that David is saying that. The first $6500 is the additional savings, and the second $6500 is the realized profits (via dividends).

    "Your wealth grows from a combination of additional savings, and realized and reinvested profits."

    The means in which the "realized" profits are obtained can differ, and I believe can be profound.
    In order to realize a capital gain and reinvest, I must sell one thing and buy another.

    Hopefully that is from something that is overvalued (by the market) into something that is undervalued (by the market).

    The problem I have is that the *two* transactions are at the whim of the market (and I suffer a frictional loss due to transaction costs however minor).

    "You don't add to one by doing the other. That is double counting."

    I don't think that was ever suggested or even implied other than possibly the aspect that cash contributions (via saving) may have a cap (and far to low a basis IMHO).
    Jul 3, 2013. 01:48 PM | 2 Likes Like |Link to Comment
  • An Example Of Achieving 'Critical Mass'  [View article]
    I think another corollary is that, some think that everything they spend is a necessity (when in reality they have options they simply refuse to consider for the desire to have the indulgence).

    I personally indulge in probably more extravagances than I should, but I also understand that they are precisely that!

    I also don't sacrifice my future retirement for them.
    Jul 3, 2013. 01:23 PM | 5 Likes Like |Link to Comment
  • Apple: Stop The Dividend  [View article]
    whoops, correct!
    sadly, neither my gross or taxable is in that realm ... yet!
    Jul 2, 2013. 05:34 PM | 1 Like Like |Link to Comment
  • Apple: Stop The Dividend  [View article]
    "This holds true because the investor pays an immediately 20% capital gains tax on the dividend, ..."

    Most people pay 15%, and others 0% ...
    When an AGI is north of $400k/year, then sure it's 20%.
    Jul 2, 2013. 04:52 PM | 1 Like Like |Link to Comment
  • How To Survive When Prices Double Every Day And A Half  [View article]
    "But even if inflation never escalates quite that rapidly or to that extreme in the U.S., investors here still need to plan for it."

    Seriously, plan for things that "never" happen?
    Jun 28, 2013. 03:30 PM | 2 Likes Like |Link to Comment
  • The Safety Valve Of Dividend Growth Investing  [View article]
    COP had an effective "raise" of dividend in 5/12, you simply have to factor in the spin-off (which has been an outstanding performer in its own).
    Jun 17, 2013. 05:35 PM | 1 Like Like |Link to Comment
  • Dividend Growth Investing And DRIPs Work Under All Conditions  [View article]
    " I would bet that his model does NOT include a drop in the share price equal to the $dividend paid just after the payment and before the div was reinvested."

    Research has shown that on (or around) "pay date" there is a minuscule price increase (not decrease).

    To arbitrage this, most brokerages will "pre-buy" shares, and upon "pay date" deliver either cash and/or shares to their customers. Customers who get cash result in the brokerage selling the pre purchase, those that re-invest get shares.

    The price movements/adjustments around ex-dividend day have no impact for DGI and DRIP. I would also note that is also arbitraged away as well.

    Regarding earnings, price, and dividends.
    I would agree that the price will follow actual earnings over a sufficient time-frame with the addition that, at a point in time it's more likely to follow some "expected future earnings".

    The dividends, which are paid via cash, may instead follow revenue. Since earnings are a derivative of revenue, I can understand the likelihood that over a sufficient time-frame that earnings growth may also be a proxy for DGR.
    Jun 11, 2013. 07:24 PM | 1 Like Like |Link to Comment
  • Dividend Stocks: Lose-Lose-Lose Proposition In Intermediate Term  [View article]
    It was _your_ assessment that was incorrect, and you should attempt to analyze why. To dismiss the flaws of your past reasoning means you will fail to learn from it.

    " If your assessment of the probabilities and prospective returns was as mine was, then having made the return you alluded to was akin to having won by playing the slot machines. "

    Do you accept that others may have had a different assessment? In which case they didn't "win in a casino", instead they made a proper assessment as opposed to yours.

    If you feel you are never wrong, just that others "got lucky", then you should really reflect on _that_ problem.
    Jun 7, 2013. 01:49 PM | 15 Likes Like |Link to Comment
  • A Few Reasons Why I Think The Latest Debt Offering From Aflac Is Fairly Attractive  [View article]

    There is also the duration aspect (e.g. ~1 yr at 1.5% vs. 10 yr at 3.65%). If in a year from now they have to pay >3.8%, it's better to "refi" now.

    The currency aspect is a tougher one to gauge.
    Then again, I expect that AFL has a pretty smart team that can evaluate the relative currency values and their future aspect.
    Jun 4, 2013. 03:13 PM | Likes Like |Link to Comment
  • The Bizarro World Of Tesla Longs  [View article]
    "But the two cars are addressing different markets and are therefore not directly comparable. "

    Yet YOU do ...
    May 29, 2013. 06:27 PM | Likes Like |Link to Comment
  • The Bizarro World Of Tesla Longs  [View article]
    Why monitor them? ... your initial concern was access.
    Do you build straw-men for a living?
    May 29, 2013. 05:56 PM | 3 Likes Like |Link to Comment
  • The Bizarro World Of Tesla Longs  [View article]
    It's done TODAY for CNG re-fueling stations.
    There are also diesel refueling stations that are "card access only".
    May 29, 2013. 05:22 PM | 1 Like Like |Link to Comment
  • The Bizarro World Of Tesla Longs  [View article]
    I find it hard to believe that you don't understand how a key can prevent access.
    Is your vehicle locked?
    What about your house?
    What's it take to gain access to your workplace?
    I'm guessing your accounts have a "key" ...
    May 29, 2013. 05:18 PM | 3 Likes Like |Link to Comment