Acerca de una compra en O que ha hecho hoy para una de esas carteras que maneja:
«I recall buying O back on 1/24/11, I looked the date up. I purchased it at $34.41 and at the time it was overvalued. Almost every purchase I added on has been overvalued over the last 6 or 7 years.
Someone may want to say well, when it got to $70 and dropped down to $46 one would have been better off waiting. But I bought at $34 and continued to add and now here we are, back up near $70.
The point is, if you are purchasing a good company you would expect that whatever the 2 year or 5 year high is, even if you bought at the high, it’s going to go higher eventually. So I don’t play those games anymore. I had to as a trader because short term valuations are critical because you are not giving the company time to play out. Long term investing is different.
Take every company you own, go back 20 years and track what they would have done if you bought the 52 week high on every one of them, and then tell me whether you would be disappointed with the results today. Isn’t that what Mikee’s DG50 portfolio is out to show?Since it is the dividend cash flows that is now the focus, it is the dividend cash flows I am locking in, not a share price, a yield, and if the yield rises, I’ll lock that puppy in too, I’ll simply add more.I do not need the ego gratification where I allow greed to manage my decisions in order to have bragging rights on price entry. I also have no desire, now that my positions have been established, of selling those positions, thus the cap gains merely look pretty. It’s the dividend cash flows that are the backbone of our portfolios.>>> Whereas someone else needs to be more careful to ensure each dollar is invested to the best of its ability in earning Income to the maximum. <<<Only if you are stubborn enough not to look elsewhere where you can accomplish the same goal without waiting.
I don’t use the concept of «maximum» in my portfolio management. I establish guidelines of what I am looking for and anything that fits within those guidelines is a potential target. I don’t need maximum.
Example, I will be adding shares in an older folk portfolio tomorrow one way or the other. I’m hoping it’s KHC with it’s 5.2% yield but if KHC doesn’t impress me after hours today, I’m adding to UL tomorrow which has a yield of only 3.2%.
If I were looking for maximum yield, while trying to maintain a decorum of safety, I’d be investing in PTY with its yield of 9.3%.
Maximum hinders us, maximum blinds us, maximum often causes us to take more risks. I don’t need maximum.
O was suitable for increasing position size. KHC and UL need to be built up in size as they are lagging other companies. Regardless of valuations, one of those puppies is getting added to. The dividend cash flows will increase within the guidelines I established. In this portfolio a 3% yield is minimum for acceptance.»