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Category: Investing

In putting together my own investment portfolio, a sizeable piece is devoted to dividend-paying stocks. The aim is not necessarily to beat or equal the S&P 500…

In putting together my own investment portfolio, a sizeable piece is devoted to dividend-paying stocks. The aim is not necessarily to beat or equal the S&P 500…

— Chris Volk

“…

The aim is to have a pool of rising cash flow that covers a reasonable amount of my living costs so that I do not need to be dependent on capital gains, margin loans or market moves.

Historically, I have found it a challenge to find dividend yields approximating 5%. Keep in mind that most pension funds have actuarial return assumptions in the area of 7% (and often less), which means that a 5% dividend company only need to produce 2% annual growth.

Timing a market bottom is hard, but I know a good deal when I see it. Net Lease REIT’s may head lower as volatility, economic concerns and a “casino market” reign. Meanwhile 5% is amazing and I’m a buyer.”

the difference between rich and wealthy…

the difference between rich and wealthy…

— from https://www.collaborativefund.com/blog/the-rich-and-the-wealthy/

”… Rich means you have cash to buy stuff. Wealth means you have unspent savings and investments that provide some level of intangible and lasting pleasure – independence, autonomy, controlling your time, and doing what you want to do, when you want to do it, with whom you want to do it with, for as long as you want to do it for.“

”I want to be rich, because I like nice stuff. But what I value far more is to be wealthy, because I think independence is one of the only ways money can make you happier. The trick is realizing that the only way to maintain independence is if your appetite for stuff – including status – can be satiated. The goalpost has to stop moving; the expectations have to remain in check. Otherwise money has a tendency to be a liability masquerading as an asset, controlling you more than you use it to live a better life.”

One of the reasons I can have a concentrated portfolio is because I understand what I own…. If you own six or eight great things, or at least great bets, that’s more comforting if you actually know what you own. If you don’t know what you own, if you don’t know how to value a business, you’re just going to react to the emotions, because you don’t actually understand what you own. But if you actually understand what you own, and the premise that you bought those things with is still intact, that’s actually the only way I think you can deal with the emotion, because you realize what you own is still good

One of the reasons I can have a concentrated portfolio is because I understand what I own…. If you own six or eight great things, or at least great bets, that’s more comforting if you actually know what you own. If you don’t know what you own, if you don’t know how to value a business, you’re just going to react to the emotions, because you don’t actually understand what you own. But if you actually understand what you own, and the premise that you bought those things with is still intact, that’s actually the only way I think you can deal with the emotion, because you realize what you own is still good

—Joel Greenblatt 

In their classic 1934 text, Security Analysis, Benjamin Graham and David Dodd described “investment” as buying a security at a valuation that is associated with a reasonable expectation of acceptable long-term returns, based on a careful analysis of the relationship between the current price and expected future cash flows. In contrast, “speculation” means buying a security on the expectation that its price will advance. If you are not using well-defined and historically reliable valuation measures as a basis for investment, and you don’t have a well-defined and historically validated basis on which to expect speculative behavior from other investors, you’re probably gambling. 

In their classic 1934 text, Security Analysis, Benjamin Graham and David Dodd described “investment” as buying a security at a valuation that is associated with a reasonable expectation of acceptable long-term returns, based on a careful analysis of the relationship between the current price and expected future cash flows. In contrast, “speculation” means buying a security on the expectation that its price will advance. If you are not using well-defined and historically reliable valuation measures as a basis for investment, and you don’t have a well-defined and historically validated basis on which to expect speculative behavior from other investors, you’re probably gambling. 

— John Hussman