Search found 406 matches

by Stryker
Mon Jun 06, 2011 8:42 am
Forum: Investing - Theory, News & General
Topic: Buying Bank Stocks
Replies: 7
Views: 1145

Re: Buying Bank Stocks

Billy Pilgrim wrote:A lot of my friends are licking their chops.

http://www.nytimes.com/2011/06/06/busin ... l?_r=1&hpw


I am going to wait.

What about all of you?
From your article above:

"What’s more, well-known hedge fund investors like John A. Paulson and David Tepper have been quietly selling the big positions in the sector they had earlier amassed, a sign the smart money has already begun to bail."

From an article a few days ago in CNN/Money:

The biggest loser in the latest apparent Chinese reverse merger fraud is John Paulson.
by Stryker
Sun Jun 05, 2011 2:40 pm
Forum: Investing - Theory, News & General
Topic: Dividend Growth stocks: todays safer alternative to bonds
Replies: 27
Views: 3694

stratton wrote:
Stryker wrote:I'm 100% Canadian dividend growth stocks (aside for some cash) in a taxable portfolio, but I don't know if it's safer today than bonds, since for that I have to predict the future, and I try my best not to do that, at least not verbally.
Yes, but doesn't the Canadian tax system give a credit for dividends?

There isn't one in the US.

Paul
Yes, there's a dividend tax credit for Canadian equities, which is why I keep them in a taxable portfolio.

Didn't want to change the subject, but just to strongly imply that it's awfully hard to predict the future, which is the key to deciding whether one asset is more risky than another, after inflation (or deflation) and taxes are accounted for.
by Stryker
Sun Jun 05, 2011 7:24 am
Forum: Investing - Theory, News & General
Topic: Dividend Growth stocks: todays safer alternative to bonds
Replies: 27
Views: 3694

I'm 100% Canadian dividend growth stocks (aside for some cash) in a taxable portfolio, but I don't know if it's safer today than bonds, since for that I have to predict the future, and I try my best not to do that, at least not verbally.
by Stryker
Thu Jun 02, 2011 12:58 am
Forum: Investing - Theory, News & General
Topic: Today Was a Good Day to Hold Bonds
Replies: 23
Views: 4476

I'm mostly an equity investor and hoping for another long term sale on stocks, but that may be just wishful thinking.
by Stryker
Wed Jun 01, 2011 8:10 am
Forum: Investing - Theory, News & General
Topic: The Richest Man in Babylon free book
Replies: 21
Views: 5830

Thanks. I have an old pocket book edition I bought well over twenty years ago, and it's still one of my favourite financial planning guides. It's so international in scope, that you could take this book virtually anywhere in the world, where's there's a free enterprise system and it will work; if one heeds the lessons taught.
by Stryker
Tue May 31, 2011 12:35 pm
Forum: Investing - Theory, News & General
Topic: Fairholme now performing poorly experiencing outflows
Replies: 39
Views: 7947

...if I had owned Berkshire Hathaway in the late 90's, then I should have sold it when Warren Buffet was the laughing stock of Wall Street and regarded as a has been, because we were in a new era and his investing methods obviously no longer worked. Sure. And following the loyalty theory, if you owned Legg Mason Value Trust in 2007 you should have stuck with it when it started to lose ground--after all, it had beaten the S&P for mumble years. The indexer knows what to do: buy, hold, and rebalance. Because accepting the average of good times and bad is consistent with accepting the average of good stocks and bad. But an active investor has to have a way to decide when to buy and when to sell. It's part of the deal. "Buy and hold&qu...
by Stryker
Tue May 31, 2011 10:23 am
Forum: Investing - Theory, News & General
Topic: Fairholme now performing poorly experiencing outflows
Replies: 39
Views: 7947

In the above case, if I had owned Berkshire Hathaway in the late 90's, then I should have sold it when Warren Buffet was the laughing stock of Wall Street and regarded as a has been, because we were in a new era and his investing methods obviously no longer worked. Sure. And following the loyalty theory, if you owned Legg Mason Value Trust in 2007 you should have stuck with it when it started to lose ground--after all, it had beaten the S&P for mumble years. http://i51.tinypic.com/2niblt4.jpg The indexer knows what to do: buy, hold, and rebalance. Because accepting the average of good times and bad is consistent with accepting the average of good stocks and bad. But an active investor has to have a way to decide when to buy and when to...
by Stryker
Tue May 31, 2011 9:12 am
Forum: Investing - Theory, News & General
Topic: Fairholme now performing poorly experiencing outflows
Replies: 39
Views: 7947

One bad year? Now I know why investors usually do worse than the fund. They're always ready to jump in order to chase performance, only to fail again. I think there's an inconsistency here. The theory under which one would invest in an active fund is that a) the manager understands the ebb and flow of market tides and knows when to jump in and out of the fund, and b) the investor is able to recognize those managers that "have it." If you can tell when a manager "has it," you can tell when a manager "loses it." In the world of active investing it is frequently suggested that you should be ruthless and quick to "fire" mutual funds that are not performing. For example, one Barry Ritholtz in the Washingt...
by Stryker
Tue May 31, 2011 5:17 am
Forum: Investing - Theory, News & General
Topic: Fairholme now performing poorly experiencing outflows
Replies: 39
Views: 7947

One bad year? Now I know why investors usually do worse than the fund. They're always ready to jump in order to chase performance, only to fail again.
by Stryker
Tue May 31, 2011 4:00 am
Forum: Investing - Theory, News & General
Topic: Warren Buffet, Great or Lucky?
Replies: 64
Views: 8473

The general consensus from investors regarding value investing is the risk. That may indeed be, depending on how good or bad a value investor does. For me, it's more of an emotional thing. Most people want to join the group and here you're buying what the crowd shuns. I'm not speaking for myself, but no matter how well your portfolio does, you always remember your losers, more than your winners, which seems to be a normal human condition, and most folks can't take that. Right now I'm holding a "falling knife" stock and even though it's a very small part of my portfolio, it's no fun, believe me. The only positive, so far, I can sleep at night.
by Stryker
Mon May 30, 2011 5:31 pm
Forum: Investing - Theory, News & General
Topic: Who Had the Most Positive Influence for Everyday Investors?
Replies: 52
Views: 6088

staythecourse wrote:
Sinquefield did form the first index fund, while in Chicago.
I'm not all that sure about that since my information shows that indexing attracted Batterymarch, Wells Fargo, and American National Bank all about the same time. In fact I've seen sources stating that one of the founders of Batterymarch, Dean LeBaron, was also "one of" the inventors of index funds.
by Stryker
Mon May 30, 2011 2:07 pm
Forum: Investing - Theory, News & General
Topic: Who Had the Most Positive Influence for Everyday Investors?
Replies: 52
Views: 6088

For me it was Edmund Faltermayer. Invest for growing dividend income, keep the portfolio turnover down. Same for Lowell Miller. Say hello to bouncing principle.
by Stryker
Sat May 28, 2011 6:00 pm
Forum: Investing - Theory, News & General
Topic: Is there such a thing as "good" market timing?
Replies: 93
Views: 7857

I haven't run the numbers, but I imagine the price only market timing approach would've been an unmitigated disaster for a Japanese investor over the last 25 years. Should the Japanese investor still have 85% in stocks since the drop from the 1989 peak is still >50%? It would be interesting seeing the PE10 results for a Japanese investor as that would've had them pretty much out of the market at the top. According to James Montier just buying the cheapest stocks in Japan based on price to book value would have generated a return of 3% p.a.vs a market return of -4% p.a. (1990-2007). Deflation, Depressions and Value. ---------------------------------------- Net-net stocks in Japan outperformed the market by 15% from 1985 to 2007. Graham Net-...
by Stryker
Sat May 28, 2011 8:24 am
Forum: Investing - Theory, News & General
Topic: Warren Buffet, Great or Lucky?
Replies: 64
Views: 8473

"Ben left an estate of approximately $3 million dollars."

Page 223 of "Benjamin Graham On Value Investing" by Janet Lowe.
by Stryker
Sat May 28, 2011 7:30 am
Forum: Investing - Theory, News & General
Topic: Is there such a thing as "good" market timing?
Replies: 93
Views: 7857

jeffyscott wrote: It’s nerve-racking when you buy something one day and see it worth less immediately the next day. You can’t help but wonder why you just threw money down the drain.
Well, that's exactly what a value investor has to face. You're not buying what everyone loves whether it be an individual stock or a total market circa 2008-2009.
by Stryker
Sat May 28, 2011 6:49 am
Forum: Investing - Theory, News & General
Topic: Is there such a thing as "good" market timing?
Replies: 93
Views: 7857

can't speak to Swedroe's TIPS strategy as I don't pretend to know enough about the bond market. And I know richard and others believe PE10 predictive value isn't significant because of a lack of data. I just don't think it matters that the data is limited. The weight of the evidence suggests that extreme measures in PE10 are helpfully predictive. That is, PE10 under 10 and PE10 over, say, 25, is predictive enough to be helpful. That's good enough for me. From this standpoint, one can make an investing career by virtue of just 1 or 2 correct, important, sizable bets at 1 or 2 very opportune moments based on PE10. In my career I've made 2. The first was mostly (though not entirely) avoiding total stock indices from the late 90s through 2008....
by Stryker
Sat May 28, 2011 2:33 am
Forum: Investing - Theory, News & General
Topic: Is there such a thing as "good" market timing?
Replies: 93
Views: 7857

I would never want to follow Hetty Green's lifestyle, but I most certainly admire her investing acumen.

She formulated an investment strategy to which she stuck throughout her life: conservative investments, substantial cash reserves to back up any movement, and an exceedingly cool head amidst turmoil.
by Stryker
Fri May 27, 2011 9:04 am
Forum: Investing - Theory, News & General
Topic: Is there such a thing as "good" market timing?
Replies: 93
Views: 7857

I invest the same way as when I have to go shopping. If an item I usually buy is on sale, and I can stock up on it, then I buy. If it's not a price I want to pay, and I can hold off, then I don't buy. It's that simple. The difficult part is having the patience to wait, and always feeling you have to be doing something.
by Stryker
Thu May 26, 2011 7:57 am
Forum: Investing - Theory, News & General
Topic: If You Don't Have an Emergency Fund, You Have an Emergency
Replies: 8
Views: 2243

I'm always thinking ahead about what's needs to be replaced, but there's always the unexpected as well, so we have to keep a fairly large cash stash, because I hate taking out debt. In the last few years it's been replace the weeping tiles on one side of the house, because of a basement leak, new gas furnace and central air conditioner, new shingles on the roof because of another leak, as well as new evestroughs. The latest has been oral surgery. I couldn't believe the estimate on that.

All necessities, not wants or luxuries.
by Stryker
Mon May 23, 2011 5:41 pm
Forum: Investing - Theory, News & General
Topic: 2% dividends + 2% from principal =4 % but?
Replies: 22
Views: 2719

The hybrid plan explained in the link you provided makes the most sense and has the least risk. It is still kind of scary when the future is unknown, i.e. past results don't indicate future return. I guess I'm somewhat confused as well that more don't take the approach Stryker uses but I clearly agree that everyone won't have the ability to do that. Perhaps like him, my DNA doesn't want to accept the reduction of principle. All things being equal, each person must choose for themselves. The key is to get to the point where the method one chooses would be possible. What I know works. Live within your means. Avoid debt as much as possible. Pay off any outstanding debt as soon as possible. Save a percentage of your income. Re-invest that savi...
by Stryker
Mon May 23, 2011 12:48 pm
Forum: Investing - Theory, News & General
Topic: Is the Value Premium a Result of Distress?
Replies: 3
Views: 1050

In regards to deep value stocks it could be the same as the type of equity that Warren Buffett referred to as cigar butt investing. Good for one puff, but that's about it. Certainly the type of stocks that Walter Schloss preferred. He's mentioned in Adam Smith's "Super-Money", published in 1972. Some of the stocks in his portfolio at the time, The Rutland Railroad, The New York Trap Rock Company, The Union Street Railway of New Bedford, and Jeddo Highland Coal. Talk about creative destruction. I certainly don't see any long term investments amongst that lot, but he succeeded splendidly over the long term.
by Stryker
Mon May 23, 2011 12:23 pm
Forum: Investing - Theory, News & General
Topic: 2% dividends + 2% from principal =4 % but?
Replies: 22
Views: 2719

Obviously, if you can't live off your dividend income, then you're going to have to take the total return method. I would say that would be the approach for most, but as in anything else, it has to fit your personality. For me, it would only be as a last resort. If one reads the full text of the article, it may compel one to change their mind. The conclusion does hint that one will pay more taxes using the income or dividend approach as well as take on higher risk, but there are other disadvantages as well. Anyways, I would not dismiss the total return approach just because of my personality. I have to dismiss it due to my personality, because I'm not interested in spending the principal. I think it's great that others like the total retur...
by Stryker
Mon May 23, 2011 8:06 am
Forum: Investing - Theory, News & General
Topic: 2% dividends + 2% from principal =4 % but?
Replies: 22
Views: 2719

That would seem to be a common sense way to approach this. I wonder why it isn't a common topic here along with normal SWR discussions? It is a rather common topic, but many folks have read this white paper on the subject: https://institutional.vanguard.com/iip/pdf/WP_TotalRet.pdf So instead of an income or dividend approach they are convinced to use a total return approach as advocated in the article which concludes: In conclusion, the total-return approach to spending is identical to the income approach for investors whose portfolios generate enough cash flow to meet their spending needs. For those investors who need more cash flow than their portfolios yield, the total-return approach is the preferred method. Compared with the income-on...
by Stryker
Mon May 23, 2011 3:54 am
Forum: Investing - Theory, News & General
Topic: 2% dividends + 2% from principal =4 % but?
Replies: 22
Views: 2719

3504PIR wrote:

Would it be more prudent to have a portfolio using this scenario with a dividend yield slightly more than 4% to start with so you worry less about the principle lasting?
In my own taxable portfolio I look at not only yield, but some increase in earnings along with dividend growth. I always make sure that at least part of the dividend received gets invested in the same type of stocks. My wife and I can do this, because we've always lived within our means. We enjoy harvesting some of the fruit from the orchard, but don't like the idea of starting to cut down the trees.

I also have fairly strict allocations within the sectors and industries that pay decent dividends here in Canada.
by Stryker
Wed May 18, 2011 6:34 pm
Forum: Investing - Theory, News & General
Topic: Another reason why stock picking/market timing are so hard
Replies: 11
Views: 1718

Re: stryker

First, you have to be sure that they generated ALPHA, not just beat say the S&P. Remember the value premium is large, so they would benefit. What you should do is benchmark the value managers against say either a DFA LV or SV fund, then see if there is really alpha. And here's one that you might have had on your list as successful active manager that failed, Bill Miller. And there are likely many others but we don't know them now because they are gone having done poorly. We tend to have selective memories. No, Larry I'm not being selective, and again no, Bill Miller was not on my list. Of course I'll be accused of cherry picking as well. Anyhow, I'm referring to investment managers who I've known since the early 80's. So, we're going b...
by Stryker
Wed May 18, 2011 1:12 pm
Forum: Investing - Theory, News & General
Topic: Another reason why stock picking/market timing are so hard
Replies: 11
Views: 1718

Re: stryker

Yes successful active management does lead to its own destruction. But the question is given all the managers trying how do you know that the few ones you mentioned that succeeded did so by skill or luck. As Fama and French (among many others) demonstrated it is very hard to distinguish between the two. At any rate, by the time you can be sure it was skill (French estimates it takes far more than our investment horizons) it likely is too late as the fund has likely grown to big to continue to add alpha. All I know Larry is that most (not all) of the successful value investors that I used to follow since the early 80's seemed to have continued in their streak. Not every year, but most years. Of course it's age that eventually catches up wit...
by Stryker
Wed May 18, 2011 12:46 pm
Forum: Investing - Theory, News & General
Topic: Another reason why stock picking/market timing are so hard
Replies: 11
Views: 1718

That's not what I've observed from the top value managers. When they're small and they can buy such, they seem to do very well. Once they've been discovered by the public and the money starts pouring in, if they don't close the fund, then they have to start buying the larger cap stocks, where there's plenty of competition from other pros and their returns start dropping. Two examples would be fund managers John Templeton and Peter Cundill when they were still both alive.
by Stryker
Mon May 16, 2011 5:12 pm
Forum: Investing - Theory, News & General
Topic: Simultaneously buy small cap value & short small cap gro
Replies: 35
Views: 3582

I was in the bookstore today reading a bit of "The Little Book That Still Beats The Market" by Joel GreenBlatt. He was saying that a number of readers of his first edition were asking if the first decile of his stock picks did so well compared to the 10th, then why not short this 10th decile. He did this on a backtest and the funds invested on the short side were totally wiped out.
by Stryker
Mon May 16, 2011 5:02 am
Forum: Investing - Theory, News & General
Topic: plum creek lumber
Replies: 35
Views: 5983

I haven't been able to figure it out, but for some reason the book value per share for PCL has been going down steadily since 2001. It's now about half of what it was ten years ago. The company has been buying back shares, which is a good sign, and for at least the last five years, they've still had free cash flow left over after paying out the dividends.
by Stryker
Sun May 15, 2011 5:03 pm
Forum: Investing - Theory, News & General
Topic: Question about Rule #1
Replies: 15
Views: 2178

Re: Analyzing financial statements ?

Stryker: The more I delve into different companies financial statements, the more I slowly learn what makes them tick. I don't and can't spend many hours on it, but then again, I'm not sure it would help to do so. For almost 30 years it was my job to analyze company financial statements. First at IRS and later as Chief of the South Florida Financial Division of the federal Small Business Administration. I also hold a Certified Commercial Lender (CCL) degree from the American Bankers Association. I know enough to know that I cannot properly analyze the financial statements of a large corporation. Even if I could, I doubt it would give me an edge over hundred's of other analysts who would be on the other side of my trade. I am satisfied to j...
by Stryker
Sun May 15, 2011 12:09 pm
Forum: Investing - Theory, News & General
Topic: Question about Rule #1
Replies: 15
Views: 2178

No, I would never say that I can pick individual stocks better than a pro, nor would I say I could beat a simple index. I have a small allocation in index funds in my own portfolio, although I mostly have individual stocks. I've been doing it long enough to know I can do both. I just make sure the portfolio doesn't blow up on me, and that's all I care about. Enjoy the investing process especially when other investors start getting scared like in 2008-2009. What I've found out over the last thirty plus years of investing, is that investing is a lifelong learning experience. It's been my main hobby for all these years, one that I've enjoyed thoroughly through all the ups and downs of the global markets. I think you may be an exception becaus...
by Stryker
Sun May 15, 2011 11:40 am
Forum: Investing - Theory, News & General
Topic: Question about Rule #1
Replies: 15
Views: 2178

Taylor, as you may have read in the rest of the post, it was obvious that many posters had zero understanding of Graham's idea of "don't lose money" in terms of valuation and/or the risks of permanent capital loss. Do you think that sometimes the focus on allocation only and risk (as a measure of volatility) can perpetuate a general lack of understanding of basic macro economics, government debt, etc? I've read a lot about Ben Graham as well as his own book, "The Intelligent Investor", but I don't remember him at anytime recommending that one invest according to macroeconomics. He was always concerned if he thought the market was getting expensive and worried that another Great Depression may occur, but he was basically...
by Stryker
Sun May 15, 2011 8:24 am
Forum: Investing - Theory, News & General
Topic: Question about Rule #1
Replies: 15
Views: 2178

Re: Individual stock picking ?

Hi Stryker: I just buy the individual equities when they look cheap or reasonably priced and I'm in no big rush to sell. As long as you don't have a casino type mentality then one should do OK. Do you really think you can analyze and pick individual stocks better than a full-time professional money manager (and most don't beat a simple index fund)? Something to consider. . . Hi Taylor, No, I would never say that I can pick individual stocks better than a pro, nor would I say I could beat a simple index. I have a small allocation in index funds in my own portfolio, although I mostly have individual stocks. I've been doing it long enough to know I can do both. I just make sure the portfolio doesn't blow up on me, and that's all I care about....
by Stryker
Sun May 15, 2011 3:27 am
Forum: Investing - Theory, News & General
Topic: Question about Rule #1
Replies: 15
Views: 2178

stemikger wrote:I just finished reading Phil Town's book Rule No. 1 and all I can say is thank God for buy and hold because I know I don't have what it takes to invest this way.

I also don't think the average guy or girl has what it takes either.
Why? I just buy the individual equities when they look cheap or reasonably priced and I'm in no big rush to sell. As long as you don't have a casino type mentality then one should do OK.
by Stryker
Sat May 14, 2011 12:55 pm
Forum: Investing - Theory, News & General
Topic: Rule No. 1 Investing
Replies: 24
Views: 4605

DaleMaley's book review mentioned the following: Town also ignores the behavioral finance aspects of investing. Very few people have the discipline to remain 100% invested in stocks when a Bear market shows up. Most people chase the winners and therefore buy high and sell low. This cannot be emphasized enough. We all think we can stay the course (just like we all think we can avoid fatty foods and limit portion sizes when eating), but some powerful built-in influences have to be fought back when the going gets rough. Just wondering: does Mr. Town advise using stop-loss orders (real or mental) as a way to follow though with his program? I must be a bit strange. I enjoy bear markets more than I do bulls. Only trouble is (aside from range bou...
by Stryker
Fri May 13, 2011 12:08 pm
Forum: Investing - Theory, News & General
Topic: Rule No. 1 Investing
Replies: 24
Views: 4605

I've read it. It's certainly not the best book to read about active investing, but I've read a lot worse over the last thirty plus years of doing it myself.
by Stryker
Wed May 11, 2011 11:26 am
Forum: Investing - Theory, News & General
Topic: Fisher Investments hard sell
Replies: 40
Views: 51353

I will say this however, I found Ken Fisher (the man, not the firm) to be very bright, responsive, and actually made the right general market calls (even though he had no ability to trade on it). I dealt with Ken Fisher when he had his own forum with Forbes way back in the late 90's. I had bought his book Super Stocks back in 1984, and with this found a new way to value stocks, so between him and the books authored by his father Philip, I learned quite a lot about investing. When it came to the forum, as Sperry says I also found him to be very bright. You could ask him any investing question, and he didn't fail to answer, and he would answer with clear honesty. Eventually Forbes decided to change the format of their forums. None of the mem...
by Stryker
Mon May 09, 2011 12:44 pm
Forum: Investing - Theory, News & General
Topic: Companies with rising dividends
Replies: 51
Views: 7487

Over twenty years ago, Edmund Faltermayer an editor at Fortune magazine ran a series of three articles explaining how he got started in the late 1970's, buying and for the most part, holding, dividend growth stocks. The articles were: LESSONS FROM A LAZY AMATEUR THE NO-SWEAT WAY TO WIN WITH STOCKS: HOLD SHARES IN GOOD COMPANIES THAT PAY RISING DIVIDENDS. BIG RETURNS MY WAY STOCKS A RETIREE CAN STICK WITH Here's how one investor is able to reap growing dividends from safe companies that can be largely -- although not entirely -- ignored. Even though I'm in Canada, aside from some cash in the account, my taxable portfolio is all in Canadian dividend growth stocks. The three articles must of been important to me, since I've kept the original m...
by Stryker
Sun Dec 27, 2009 4:46 pm
Forum: Investing - Theory, News & General
Topic: 50 Biggest Companies Dominate the S&P 500
Replies: 94
Views: 13642

Re: 50 Biggest Companies Dominate the S&P 500

Read an interesting statistic in Bogle's new book. We all pretty much know that the S&P 500 comprises about 75% of the total stock market. But I was surprised to learn that the 50 biggest companies in the S&P 500 comprise about 35% of the total stock market! Does that have any implications for how divesified we view an S&P 500 fund to be? Dave Way back in June 1998 Ken Fisher wrote an article called "Yes, Size Does Matter" for Bloomberg. I've still got hard copies of the article, but can't find it on the internet anymore. Don't know how valid his research would be all these years later, but a few things he found at the time: "To beat the S&P 500 when small caps are faring better than large caps, you needn't o...
by Stryker
Sat Dec 26, 2009 3:39 pm
Forum: Investing - Theory, News & General
Topic: Dividends cuts in '09 at a level not seen since 1930's
Replies: 22
Views: 4793

But 2009 showed that the safety of dividends was just an illusion. While, according to the article, the 2009 S&P500 dividend cuts amounted to 21% from 2008, most of the dividend stock funds did far worse. DVY, the first dividend ETF that everyone jumped on cut 31%. DVY was one of the dividend ETF's that had too high an allocation to the Financial sector. From a Kiplinger article dated March 24, 2009: At its inception, in late 2003, the fund allocated 43% of its assets to financial stocks; Bank of America topped the list with a 5% weighting. Going into 2008, by which time storm clouds had already gathered over the financial sector, that allocation had risen to 49%. The outsized stake in financials played a major role in the fund's crumm...
by Stryker
Sat Dec 26, 2009 2:38 pm
Forum: Investing - Theory, News & General
Topic: Dividends cuts in '09 at a level not seen since 1930's
Replies: 22
Views: 4793

brunnock wrote:Stryker- you want to look at CGW not CWW. I'd post a link, but this forum software won't let me post a link yet.
Brunnock,

Here's the distributions for CGW. Other than the fact that CGW has distributions annually and CWW quarterly, I don't see any difference in the makeup of the portfolios.
by Stryker
Sat Dec 26, 2009 9:04 am
Forum: Investing - Theory, News & General
Topic: Dividends cuts in '09 at a level not seen since 1930's
Replies: 22
Views: 4793

brunnock wrote:Not just financials and REITs. The dividend for Claymore's Global Water fund (CGW) dropped from $1.24 last year to 20 cents this year. The fund consists of utilities and heavy machinery.
This is their site showing the distributions from 2007 to 2009 for the Claymore S&P Global Water ETF. Maybe I'm missing something, but I don't see cuts on the scale you're referring to.
by Stryker
Sat Dec 26, 2009 3:21 am
Forum: Investing - Theory, News & General
Topic: Dividends cuts in '09 at a level not seen since 1930's
Replies: 22
Views: 4793

Re: Dividends cuts in '09 at a level not seen since 1930's

Aside from the Financial Sector and REIT's, it probably wasn't anywhere near as bad as the article implies. Just like the Technology Sector meltdown in 2000, I've learned from it, and I now keep my target percentages in each sector of the portfolio tightly controlled.
by Stryker
Wed Dec 16, 2009 12:14 pm
Forum: Investing - Theory, News & General
Topic: Legendary investor Christopher H. Browne dies
Replies: 14
Views: 2803

Last five years, the two funds that have been in existance for at least 10 years (Tweedy Value and Int'l) have more or less matched benchmarks , but with less volatility. It appears that the prior five years before that is when those funds were outperformers. So, investors who chased prior returns (and may have built up asset base) were not rewarded. So the question is whether the lower volatility would help an investor who would (hypothetically) rebalance between only those funds and bonds? Expense ratio's seem a bit rich . RM Good analysis. Or as Martin Fridson put it in reviewing John Neff's 'Windsor II' performance, what was not available in 1968, but is now, is a small cap value index fund , which catches the same performance, but at ...
by Stryker
Tue Dec 15, 2009 4:29 am
Forum: Investing - Theory, News & General
Topic: Legendary investor Christopher H. Browne dies
Replies: 14
Views: 2803

Legendary investor Christopher H. Browne dies

December 14, 2009 3:50 PM

Legendary investor Christopher H. Browne dies

Tweedy Browne principal was proponent of value investing—“buying $1 for 66 cents,” as he called it—and known as the man who helped bring down newspaper baron Conrad Black.
by Stryker
Mon Dec 14, 2009 4:49 pm
Forum: Investing - Theory, News & General
Topic: Zweig: Reach for Stock Yield, and You Might Get Bit
Replies: 17
Views: 4355

I guess the point is not to invest in specific equities in the quest for yield. However, dividends in the long run have accounted for a decent amount of total equity returns. RM That's certainly what Robert Arnott found in his research: "Dividends not only dwarf inflation, growth and changing valuation levels individually, but they also dwarf the combined importance of inflation, growth, and changing valuation levels." Same as what Dimson, Marsh and Staunton found: "The longer the investment horizon, the more important is dividend income. For the seriously long term investor, the value of a portfolio corresponds to the present value of dividends. The present value of the (eventual) capital appreciation dwindles greatly in si...
by Stryker
Mon Dec 14, 2009 1:53 pm
Forum: Investing - Theory, News & General
Topic: Zweig: Reach for Stock Yield, and You Might Get Bit
Replies: 17
Views: 4355

I'm not quite as infatuated with yield as I once was. I just make sure I'm diversified in a taxable portfolio by investing in individual stocks with varied yields along with dividend growth, and by having them spread out amongst various sectors and industries located here in Canada. Most important is having them spread amonst the various sectors and industries. The values for each sector should match market weightings. I see little value in "diversification" across yield characteristics, as long as you have sector and industry diversification. Best wishes. That's one way of doing it. Nothing wrong there, but for my portfolio a lot is dependent on how many Canadian stocks I can find for each sector. My maximum target per stock is ...
by Stryker
Mon Dec 14, 2009 8:43 am
Forum: Investing - Theory, News & General
Topic: Zweig: Reach for Stock Yield, and You Might Get Bit
Replies: 17
Views: 4355

I'm not quite as infatuated with yield as I once was. I just make sure I'm diversified in a taxable portfolio by investing in individual stocks with varied yields along with dividend growth, and by having them spread out amongst various sectors and industries located here in Canada.
by Stryker
Sun Dec 13, 2009 7:59 am
Forum: Investing - Theory, News & General
Topic: Zweig: Reach for Stock Yield, and You Might Get Bit
Replies: 17
Views: 4355

petrico wrote:
Stryker wrote:Zweig says:

"But the dividend aristocrats fell 21.6% last year. Yes, that beat the 37% loss on the S&P 500 as a whole."

Why is it when I do a one year chart comparison for two ETF's, SPY has had far better returns over that time period compared to SDY, and yet Zweig appears to me to be saying the opposite? :?
I think his "last year" refers to the 2008 calendar year, not the past 1 year rolling period that maybe your chart shows?

--Pete
Pete,

Checking the 2008 performance figures at Morningstar for both ETF's in 2008, the figures aren't spot on with Zweig's, but close enough that you're absolutely right. Thanks.