Bruce7b

Bruce7b
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  • Top 3 REIT Opportunities From Tax Loss Selling  [View article]
    Seems strange that many investors would hold fully taxed REITs in taxable accounts. Seems an automatic choice for IRAs. Anybody out there care to explain their decision to hold REITs in a taxable account?
    Nov 24, 2015. 08:52 AM | 1 Like Like |Link to Comment
  • Why Roundy's Is Very Significant To Kroger's Stock Price  [View article]
    You don't make the transition from revenue of Roundy's to profit to Kroger. If the added stores aren't profitable then how does the added revenue help Kroger?. Harris Teeter was a profitable company before Kroger bought it. Kroger came in and made some changes in pricing strategy but otherwise it seems like the same chain (you would never know Harris Teeter is owned by Kroger if you shop in the store or look at their products or ads). As wpx indicates it is no slam dunk. It seems that Kroger doesn't change the name of stores it acquires (Harris Teeter, King Sooper, City Markets, etc) so not sure how that gets them into Chicago--other than trying to improve the operation of the Mariano and other Roundy chains.
    Nov 23, 2015. 11:43 AM | 2 Likes Like |Link to Comment
  • FedEx: 25-50% Upside Potential In 12 Months  [View article]
    Have seen mention that there might be a Uber type of competition coming to the delivery world. Individuals delivering packages in their commuting area--maybe while waiting for taxi business in the busy periods. It would seem that package delivery would be less regulated than the passenger taxi business--so what will keep them out? If it works for pizza and other restaurants why won't it work for many other businesses with packages to deliver. I would be hesitant to bet on the future of FDX/UPS ground growth.
    Nov 22, 2015. 11:39 AM | 1 Like Like |Link to Comment
  • Time To Cover Any STAG Shorts, But Wait Until Mid-December To Consider Buying REITs  [View article]
    Well explained Cory. Wonder if we will be hearing from that silly rabbit on the topic.
    Nov 18, 2015. 11:27 AM | 1 Like Like |Link to Comment
  • Maximising Shareholder Value Has Nothing To Do With Maximising The Share Price  [View article]
    A strange combination of opinions. You finish with a quote from Warren Buffett talking about long term goals but the premise of your argument seems to be your opinion that "a dividend today is preferable to a dividend in 50 years' time". As you know, Berkshire, in 2015, is celebrating 50 years under Buffett control and during that 50 years there was one small dividend ( I think 1972). Obviously to the Berkshire investors a dividend was not preferable up front and it was not the basis of the tremendous performance of their investment. First, because it is far more tax efficient for the corporation to retain those earnings and secondly it allowed management to wisely reinvest those earnings and compound them--tax deferred. So where does the value of Berkshire reside--the appreciation of the stock over those 50 years and into the future. That stock appreciation is the primary goal of many investors--but appreciation can and should be a long term goal. Dividends are the short term goal--often increased to keep the short termers happy (think of big oil now--increasing dividends as earnings disappear, or all those dividend aristocrats at the bottom of the last recession increasing the dividend when (if they cared at all about the long term) should have eliminated the dividend and used the cash to buy back shares on the cheap).
    Nov 18, 2015. 08:30 AM | Likes Like |Link to Comment
  • Jeremy Siegel's Case For Equities  [View article]
    You say "rather, the cap weighted index fund continues to buy more as the market cap rises". I see this erroneous statement on a regular basis here on SA. As the price of a stock goes up the index fund doesn't have to buy more. It happens automatically as the share price goes up. An index fund never has to buy and sell to stay market weighted--the market does that automatically. I think what you are trying to say is that those overpriced stocks make up a bigger share of the fund as the price rises.
    Nov 12, 2015. 07:44 AM | 2 Likes Like |Link to Comment
  • Closed-End Target Date Muni Bond Funds Have A Good Yield And Low Interest Rate Risk  [View article]
    Another way of looking at it LB. Current price of 15.48 with NAV of 15.43. That NAV won't disappear (unless they did a real poor job of picking bonds). Assuming a payout of $15 then the excess NAV of .43 will be paid out, in addition to whatever the fund earns between now and maturity (less expenses of course). That excess distribution cancels out the capital loss. Since all munis are held in taxable accounts we get a tax loss of .48, a NAV distribution of .43 and whatever the fund earns in interest. To me the historical distribution is meaningless since they are in the process of liquidation. Seems like every investment choice comes down to what we compare it to. You compare it to EIV. I would compare it to a 3 year Treasury or any other short term investment without much risk. If interest rates spike the EIV will lose principal and I am thinking BPK won't. On the other hand the BPK seems to hold some bonds that extend beyond the maturity date so not sure how that works.
    Nov 11, 2015. 07:52 PM | Likes Like |Link to Comment
  • Dead Sector Walking: Traditional Retail Is Still An Investing Graveyard  [View article]
    How about the REITs that rent space to these stores? What is your take on outlet malls, strip malls, etc? Can I assume you don't automatically include grocery stores and some other retail types in the "stay away" category?
    Nov 11, 2015. 06:49 AM | 1 Like Like |Link to Comment
  • Stocks Finally Drop, Venezuela On The Brink Of Collapse - Bezek's Daily Briefing  [View article]
    You might have learned the wrong lesson CT. In the 1990s there were a slew of Janus funds, including Janus 20, that held most of the same stocks--overpriced tech stocks. Momentum stocks that looked good on the way up (Cisco at 82 anyone?). They all dropped not because they were run by Janus but because they had the same overpriced stocks. If you had owned the Fidelity high tech funds at that time they would have dropped also. Maybe the lesson you should take is to understand what is in your mutual funds. Spreading them to different fund companies won't solve your problem.If you don't want to bother with that buy a S&P 500 index fund like Buffett suggests.
    Nov 10, 2015. 09:20 AM | 4 Likes Like |Link to Comment
  • Gilead - Good Newsflow Accelerates; All-Time Highs Now Achievable  [View article]
    Doctor: I understand "budget" (low expense) but not sure what "generic" means. Here is a quote from a 2014 Market Watch article "Quietly, Vanguard's actively run funds have outperformed their more famous index siblings said Morningstar researcher John Rekenthaler, pointing to returns over the past 15 years".

    Think about that for a second--a huge percentage of actively managed funds under perform their index over any 10 year period, but Vanguard's actively managed funds (as a group) outperform. In another article the out performance was identified as .79% a year. Why isn't Vanguard pounding the table with the info--I think they don't want to embarrass John Bogle and his crusade on indexing.

    The Vanguard Health fund has been a five star/four star (based on past performance) fund for 30 years--although I would grant that it is slipping. It recently lost its long term manager and it has probably gotten too large with $51 billion in assets--but generic--I don't think so.
    Nov 8, 2015. 08:49 AM | Likes Like |Link to Comment
  • Gilead - Good Newsflow Accelerates; All-Time Highs Now Achievable  [View article]
    Here's my theory. Vanguard Health Fund (VGHAX/VGHCX) has $51 billion in assets and holds 82 stocks, many of them biotech. And not a single share of GILD. They did own some in 2013/14. They see something they don't like right now about the stock. When they start buying the shares will move up.
    Nov 6, 2015. 02:08 PM | Likes Like |Link to Comment
  • Recession Will Blindside Those Focused On Unemployment Claims And Yield Curve  [View article]
    John: A lot of good analysis and bold predictions but where's the beef? How about some investment advice to go with it. I see you are short SPY? What else--are you buying bonds? How about REITs?
    Nov 4, 2015. 09:58 AM | 1 Like Like |Link to Comment
  • We're Seeing A Massive Rally But You're Making The Wrong Investment  [View article]
    Well, if we are talking usage you might as well learn the difference between "you're" and "your". Your comment means "you are wish, our command"!
    Oct 28, 2015. 01:37 PM | 4 Likes Like |Link to Comment
  • Why I Sold Berkshire Hathaway And Added Quality To My Portfolio  [View article]
    LB: Missed out on the recent correction for QUAL so I guess I mean the next 15-20% correction that seems to be headed our way, based on falling earnings if nothing else. I agree totally with your statement on Buffett/Munger. My comment wasn't meant as a bashing--just an observation on what might happen when they depart Berkshire--can't imagine too many think it will be a positive for the company. I think it is a great risk to the stock--and not a volatility risk but a real one. If the stock is under performing with them what will it do without them?
    Oct 27, 2015. 08:20 AM | Likes Like |Link to Comment
  • Why I Sold Berkshire Hathaway And Added Quality To My Portfolio  [View article]
    It is surprising to me that with 46 comments on BRK not a word about the ages of Buffett/Munger (85/90). Can they last forever? Are they as sharp as they were 10 years ago (are any of us--maybe purchase of IBM is a precursor)? Should we really expect the new managers to not make drastic changes--stock options for the managers--dividends for the stockholders--new HQ building in New York. I sold 5 years ago but wished I could have held forever. Think LB made a wise decision but maybe shouldn't have based it on a one year analysis of performance--and that performance not book value based but stock market price based. I am guessing that QUAL will be an excellent ETF (beating the vast majority of funds and investors)--with all the tax and expense advantages of many ETFs but I think I will wait until a market correction to buy it.
    Oct 26, 2015. 07:52 PM | 2 Likes Like |Link to Comment
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