Somewhere between disaster and "more of the same" is the world we all live in today, and it may go on in this same state for our lifetimes. No black swan, no collapse, no implosion of the Republic. Because there is no knowing I have given up trying to know or predict. I have one goal. Survival at a modest level under any foreseeable future. Let it be noted, I am a tiny investor. If all my Shearson Lehman deals hadn't gone south, I'd be a medium small investor. Now I trust no one. So. Really big companies. Really good divi histories. Really broad diversification. Buy and hold. Usually. Gold buried in my sister's yard. Cash under the mattress. Food in the basement. And a full expectation that we shall see a blistering correction before 2020. But, no telling. Let's talk about the big companies. I like big, strong and smart. I want a dividend that has history, a future, and a present. I want, five years from today, all investments made today to be yielding at least 5% based on cost. The higher today's yield, the lower the dividend growth rate can be. So I like the "Chowder Rule." Some examples of stocks in this category (I think) are T, SO, DUK, VZ, D, AEP, and so on. Based on my cost basis. The other extreme are a companies whose dividend growth rate leads to a reasonable expectation that it will yield 5% in five years. WMT, MCD, KMB, CL, EMR, TGT, and JNJ all are of the type. More or less, as of this writing. They will have their ups and downs. Bought right, in general, they should fit the bill. My third favorite category are resource oriented companies, mostly oil, whose history and business fit with my goals. OXY, COP, CVX, XOM, RDS, FCX, and BHP come to mind. These three kinds of companies represent my "core" investments. Outside the core, about 10% of the portfolio is more adventurous. To round out the stable with some diversity I also own some REITs; O, ADC, OHI. I also hold a very small portfolio of energy related companies like LINE, VNR, etc. And yes, I do own little tiny positions in a few gold and silver resources. While I fully expect metals to break below the floor they are forming here in late January, 2014, but I hold them as a little insurance. No position is over 5% of the portfolio value. Oils are overweighted on purpose as a group, perhaps foolishly, since oil may see a decline this year. Most positions are 2-3% of the total. I try and follow Chowder and Carnevale here on SA, and wish I had gotten the divi bug sooner in life, so I preach it ofter to others. As the markets unfold, I may of may not prove to have the mettle to be a buy and hold investor.
carefully investing but more often investigating; have had 6 decades of remembered losses in both public markets and private placements. Still a board member of a newsworthy nonprofit; still holding shares in companies seeded long ago but not yet having reached their investor exits. Trying to be thoughtful about investments and enjoying the experience. Becoming less current all the time, likely you can only be finding me a doddering old fuddy duddy for what I post here.
Southern boy that enjoys the finer points of life. Love the markets regardless of the fact we are all in a battle against Goldman and a handful of other financial hedge banks and funds with their super computers and their unlimited capital for blowing small investors off the big boy tracks. Still with patience and due diligence we can hang in the game.
65 yrs. Retirement 3 - 5 years. Winemaker for 40 years.
AAPL, , BBL, BP, BRKb, BTI, CAT, CCP, CMP, CVX, D, ED, EMR, F, GE, GILD, GPT, HSY, HP, IBM, JNJ, KMB, KO, LXP, MCD, MMM, MO, MSFT NSRGY, O, OHI, ORI, PFE, PG, PM, QCOM SO, STAG, T TD, TGT, UL, VER, VTR, VZ, WFC, WMT, WPC, XOM
ETF's: VIG, ACWV, HDV, SCHD, EFAV, XSLV , TLT,
I'm Gene Baugh and I've been studying the stock market and the economy since before I went to The University of Texas at Arlington to earn a Bachelors in Finance. Class of '83.
One day as I was listening to a Jim Rogers interview and the reporter asked him if he was buying any oil stocks right now. His reply was "Only for my kids." My son was sixteen at the time. This made me ask myself a lot of questions. I had always been a mutual fund trader and a 'macro' kind of guy sometimes moving from fully invested to a 100% cash allocation (back when money market funds actually paid you something). Occasionally (like 1986 through the '87 crash) I would move from cash into a bond mutual fund for long periods of time.
I can try to do that... but I can't expect my son to! How would I invest for HIM? How would I teach hm to invest? Although he is the beneficiary on everything I have, I suddenly felt the need to get him some investing experience of his own. An early start can be a critical component of success! So, I opened up a UGMA (Uniform Gift to Minors Account) and went out and got myself a part time job with the intent of splitting my paychecks with him to build us both an investment program to share and have in common. I wanted to show him what a couple of hundred bucks a month could do over time. First, I decided I wanted him to have the experience of being a direct investor in some companies rather than an indirect holder via mutual funds. This is the most dangerous game in the world of investing but experience is valuable too.
At first I was leaning toward 'widow and orphan' investing and considered the DGI approach. Eventually I rejected that philosophy because it was too capital intensive for our small portfolios. It would simply require too much money to produce a material cash flow. He is young and I feared a 3% yield on a $500 position would not exactly captivate his attention.
I chose to build him an 'Alternative investment" portfolio. REITs, MREITs, BDCs Closed End Funds, etc.
None of his portfolio is tax deferred. This means he will benefit from the income imediately. The idea is not to make him 'rich one day' in the 'far, far off future, but to give him a little extra passive income to help pay the bills in this very expensive world.
I am reinvesting the dividends now while the account is in trust but when he comes of age (after college) he will be able to access whatever cash flow I can produce for him over the next few years. So, I decided to invest for income using alternative investment vehicles. And I decided to focus on monthly payers.
We will end up "Staggering some Quarterlies" eventually,,, but to start out, we are going with the monthly payers as a practical matter. That word "practical" kept coming to mind in every move I considered. If I were to name this portfolio, the way many SA Contributors do, I would call it: "The Practical Monthly Income Portfolio."
The portfolio contains no K1s or any real complications at tax time.
I'm late to the party. My savings languished in a low-interest bank account for years. This past year, I finally figured out that I need to invest it if I want my money to increase! I would like to retire in 10-12 years but I'm not sure I'll have enough income. So I'm spending a lot of time on Seeking Alpha now, to make up for my lack of investing knowledge. :-)
Interest in long term stock ideas. Large positions in Nestle, CL, ABT, JNJ, FNV, RDS-A, PG, DEO, BDX, DHR, HD, 3M, NKE. Currently building up positions in BF, CSCO, XOM, PFZ, and gold miners. I believe gold mining companies are historically undervalued and will be revalued when gold catches a big.
I'm a computer engineer with a great interest in finance. I'm not a pro, I do it for my family. But I'll share what I know and try to be as helpful as I can.
Here's my portfolio composition as of March 1st 2017.
I own about 10% of my assets in precious metals. As for currencies, I keep about 75% CAD vs 25% USD of my assets. I have about 35% in mutual funds; global small cap, global fixed income and global real estate. These allocations are fully managed by me, but I re-balance twice a year or so. That mutual fund core is insuring sufficient diversification and low correlation to the following US and Canada single stocks.
About another 35% is a trusted core of single stocks, both Canada and US. These positions are generally overweight at about 3% of portfolio. Core positions have a few properties in my portfolio: low turn-over, very long term, low debt, often dividend growers with low payouts, good valuations, good growth, low beta. They are safe and feel safe, and I usually build those position over the years. I consider it core after 2 years of reliable service. A stock can gain my trust by presenting profits. Not much mega caps, mostly small to medium caps. Another property of my core: easy to understand businesses. They wash linen, they sell groceries, they make boxes, they produce wine. As I build confidence and understanding, I allow more exotic positions in core. They manage money, they rent retirement houses, they dig for metals, they patent software, etc.
At the other extreme, I keep a few lottery tickets as satellite positions for about 20% of portfolio total, 0.75% to 1.5% of portfolio each position. More risky or difficult to understand business, more volatile and some signs of stink. Could be reversal plays, could be momentum stocks, can display signs of breaking out. Usually, I rely a little more on technicals than fundamentals there. And I trade. I learn. I make mistakes. I churn. Survival of the fittest.
I always look for dips in my core positions, and I wait for clear signals to buy back (volume, a few moving avg). If I have cash, I use it. If I don't I look at core and I trim large gains. If no gains there, I look at satellites for gains. If no gains, I look at satellites for mistakes, stinkers, unreliable bets. With money, I buy dips in core positions or in-the-middle stocks. In middle stocks are first buys aiming core, or rising satellites gaining confidence and improving.
I'm a young investor with 30+ years until retirement.
My goals are (1) to sleep well at night and (2) to build a dividend-growth machine which generates a predictable stream of long-term passive income.
My strategy is to own shares in best-of-breed global companies, at this point: DIS, SBUX, V, NKE, COST, AAPL, MCD, ABT, ABBV, KO, ED, CL, GIS, T, JNJ, PM, GE, O, KMB, BEN, CVX, SO, KHC, HCN, XOM, PG, MO, WTR, MMM, and PEP.
My objective is to hold for decades, buying additional shares at fair valuations, and to allow the dividends to compound over time.
I have come to rely on the SA forum as a source of investment ideas and feedback. I have been investing in individual stocks since the mid-80's. Everybody has their own style and comfort level with respect to risk. Mine is eclectic; I look at many more ideas than I purchase. One thing about investing in stocks--and things--you know: (ala Peter Lynch) when the market reacts negatively often the reaction is overdone. When that happens, and one is familiar with a stock, it's easy to know a bargain when you see one!