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but it’s important that one understands the ins and outs of what they are doing .
because time can’t fix companies that just become poor investments .
GE , GENERAL MOTORS , CITI , 3m , IBM , KODAK , POLAROID , AT &T , etc .
all were great companies at one time and all have disappointed investors for at least 15 years .
while i was a very aggressive all through my accumulation stage now i am only aggressive enough to make sure i stand a high success rate of meeting my income needs in good and bad times.
there are loads of myth and old wives tales out there that can have you do things that are no longer the correct way to do things .
most of us are hurt simply because we believe our own bull sH*t ….we believe misinformation to be fact and it’s not
but it’s important that one understands the ins and outs of what they are doing .
because time can’t fix companies that just become poor investments .
GE , GENERAL MOTORS , CITI , 3m , IBM , KODAK , POLAROID , AT &T , etc .
all were great companies at one time and all have disappointed investors for at least 15 years .
while i was a very aggressive all through my accumulation stage now i am only aggressive enough to make sure i stand a high success rate of meeting my income needs in good and bad times.
there are loads of myth and old wives tales out there that can have you do things that are no longer the correct way to do things .
most of us are hurt simply because we believe our own bull sH*t ….we believe misinformation to be fact and it’s not
3M has been dealing with lawsuits over a number of their products, so that's a stock I wouldn't touch with a ten foot pole. GM's stock has underperformed for years because their key cars and projects haven't hit the mark. For example, their push to move into the EV space has been slow and underwhelming. GE lately has actually been trending to the upside. Still not something I'm interested in buying, but I can see the appeal for some investors. Citi... I'd buy JPM before I'd buy Citi... AT&T had a disastrous quarter. Their market share is being lost to T-Mobile and the rest of the competition, but I wouldn't invest in that space in general. It's a slowing growth story as companies compete for the same customers. Kodak & Polaroid... Obvious what happened there...
That is why I said you have to be very active if you're going to invest in equities. I bought some things today. Added to my position in a few safe REITs and bought another name that's been performing well. Some REITs I wouldn't touch, but some research in DEA and PSTL... These are fairly safe REITs... Most of DEAs properties are leased out to the government and PSTL mainly leases space for the Post Office... These are long-term leases that should not present many problems. Not crazy growth obviously, but provides some gains at the right price. UNH, LMT, MCK and V are some other names I'm looking to add at the right price. I had some LMT earlier but sold it. Good stock to hold with what is happening with the geopolitical tensions, but with other growth names to insulate it since it has huge and up and down swings, so I'll jump back in on that one at a lower price and add on pullbacks.
Overall I'm up for the year. LLY looks to be trying to break out. It's been trading right around $428.00 - 434.00 and hitting that resistance limit then turning back down. May take a little bit since it had such a huge runup after $380.00, but I'll add to that maybe later in the month.
at&t didn’t just have a disastrous quarter …they have sucked for decades now and made some of the worst business decisions .
investors who don’t understand dividends seem to think paying dividends prevents money from being squandered but sadly they are the worst offenders.
AT&T paid $100 billion to enter the cable business
AT&T thought it would be a good idea to diversify by paying $100 billion to take on cable company TCI. It was wrong! AT&T broke itself up a few years later and sold off the cable assets.
AT&T tried to elbow its way into the personal computer business with a hostile $7 billion takeover of NCR. It didn't work, and AT&T later spun the company back out at a $4 billion valuation.
Microsoft paid an estimated $500 million for mobile phone company Danger. It was supposed to be working on new phones for Microsoft, but most of the key employees left the company. The end result of the acquisition was the Kin, a social smartphone from Microsoft that totally bombed.
Cisco probably bought Pure Digital, the company that makes the Flip, right at the peak of its value in 2009. Since then high definition video cameras have been built into just about every smartphone making the Flip pretty much worthless in the long run. Which is probably why Cisco killed the $590 million acquisition .
After Google bought DoubleClick, Microsoft tried to keep up by buying ad company aQuantive for $6 billion. The acquisition never really worked out. The aQuantive executives left two years after the deal closed and the technology was discarded.
..
AOL-Time Warner is obviously the worst
i can go on and on
i owned a popular reit that paid a nice 6% dividend when interest rates were 2% .apple hospitality reit
they were using the money earmarked to buy more property and borrowed money to keep paying out when the underlying properties were in a slow down . the reit was a private reit when i bought it .it went public years later and today which is about a decade later it still has not gone higher then it’s initial price when it came out as a private reit
another myth is that dividends are a return of profit ..
wrong
they are merely an amount of money the board decides to pull out of the company cash register and refund you . which is why the share price is automatically lowered by the same amount before it can trade again .
it can come from their cash in down years , the sale of assets , cutting expenses and firing people .
it is simply a withdrawal of your invested dollars and companies who haven’t made a profit in years paid them right in to the grave .
so don’t get to hung up on only buying stocks that withdraw your money , you can do that from any stock and have the same results .
buy stocks because they are good and will appreciate because gains only come from appreciation.
without share appreciation all you are doing is drawing out money like a bank account would be with no interest
Last edited by mathjak107; 05-10-2023 at 03:20 AM..
10k is a mere 10,737, a mere 2.16% cagr with all dividends
s&p is 13,608 , a 9.688% cagr
i fail to see the point in even wasting time with this stuff ,especially if one is in their accumulation stage.
i won’t tell anyone what to do but if it was me i would seriously have to look at what i am doing in these investments.
a simple s&p fund like voo would have grown far more money, with no trading , researching time wasted , etc…….
under a 3% return as an average over years is not a great choice even for safety .
i mean look at dea , it was down 14% so certainly no safety there .
buying this is just hoping for a dead cat bounce . hope is not an investing strategy
good luck with this stuff
Those are small investments in the overall scheme of things... Less than 10% of this portfolio. You don't buy REITs for growth. lol I made it clear that I like growth AND dividend yield, so I have some runners like MA, LLY, etc. Their dividend yield is small, but I didn't buy them for that. I bought them for growth and they are performing accordingly. Small cap equities with any real growth have performed terribly in this market. This gives me some exposure without much risk and gives me some dividend and whatever growth I get out of them, fine. Quite a few other stocks I bought for growth have underperformed thus far. It is very difficult to get yield in this market as in growth and what is growing is totally overvalued. I'm not paying a premium unless it is worth it. I have a number of names on my list for growth, but the stocks have been all over the place, so those are wait and see situations. For example, MCK (not known my most retail investors, but they're in the pharmaceutical space as a distributor - relationships with all of the major players) hit over $400 a number of times and bounced back. Had great earnings yesterday, shot up to around $396, shot back down into the $380s. It is moving over its 50 & 200 day moving averages, so that's a plus, but it's been here before and then sort of sat.
Normally wouldn't touch REITs for obvious reasons (most have been through hell this year), but those two are relatively safe and I like the dividend yield. I had UPS, LMT, NXPI and AXP. They've all underperformed, so moved them out for now. Will repurchase them later when they start trending accordingly. They're all below their 50 and 200 day moving averages.
I could go back two years as well. The overall market has been FLAT, so no one has made much in this market and I'm fine with that. I'm still setting this up and hopefully the overall situation turns around later this year and into 2024. The "flight to safety" has been blah. Most of the medical/pharma stocks have underperformed and tech is overbought.
Last edited by pierrepont7731; 05-10-2023 at 06:45 AM..
i can only hope at some point you learn dividend yield is a wash by itself .
the higher the payout the bigger the offsetting price drop ….if you reinvest you simply have the same dollars you had compounding before the price reset .
dividends are always a wash the same way stock splits are a non event.
you need appreciation all the time ….dividend yield plays no part .. it is merely a withdrawal against the current existing value of your investment.
for a retiree it can be convenient to have them sell off a piece of your investment rather then you do it but it is no different….
if it is a good company then it’s a good company dividend or not …it’s only total return that grows your money
Last edited by mathjak107; 05-10-2023 at 10:38 AM..
from jan 2021 to may 1 2023 the s&p voo is up 6.19% cagr with dividends,that is not flat .
if we go april 2021 to april 2023 it’s up almost 4% cagr.
don’t use raw s&p numbers since they are not accounting for the payouts being handed back in reinvestment so things stay even ….use a fund like voo or spy to see what was gained or lost
i can only hope at some point you learn dividend yield is a wash by itself .
the higher the payout the bigger the offsetting price drop ….if you reinvest you simply have the same dollars you had compounding before the price reset .
dividends are always a wash the same way stock splits are a non event.
you need appreciation all the time ….dividend yield plays no part .. it is merely a withdrawal against the current existing value of your investment.
for a retiree it can be convenient to have them sell off a piece of your investment rather then you do it but it is no different….
if it is a good company then it’s a good company dividend or not …it’s only total return that grows your money
Just say you don't like REITs or anything that pays a decent dividend yield. There is nothing evil about REITs if you pick good ones and nothing evil about picking quality growth stocks that pay nice dividend yields. You admitted that you were not that great in the stock market, picking stocks like AT&T, which by the way historically always had a high dividend yield, which is partially what kept investors in it - regardless, I would never invest in a stock like that because it's a poorly managed company.
As I said before, I am up, even in this market, so clearly I am doing something right and it's not by accident. lol I do a ton of research on everything I buy beforehand. PXD is a damn good company and in fact I wouldn't be shocked if XOM steps up to buy them. The reason for the high dividend yield is everyone knows the sector has crazy swings to the upside and downside, but that doesn't mean that there isn't potential growth there. It's a cyclical stock and they like to give back to their investors, similar to UPS. You just need to watch when to enter to buy shares (set up limit orders) and buy on pullbacks. None of the REITs nor PXD will be large positions. My runners like LLY, MA, MSFT... That's where my money is. LLY is breaking another all-time record today trading at almost $440.00. MSFT is in on the A1 race and moving nicely trading above $300.00 a share.
Quote:
Originally Posted by mathjak107
from jan 2021 to may 1 2023 the s&p voo is up 6.19% cagr with dividends,that is not flat .
if we go april 2021 to april 2023 it’s up almost 4% cagr.
don’t use raw s&p numbers since they are not accounting for the payouts being handed back in reinvestment so things stay even ….use a fund like voo or spy to see what was gained or lost
I'm not talking about 2021. I'm talking about 2022 and this year. Take out 2021 and it's a different ball game. We haven't been able to break above 4200.
i don’t really care about a year or two and the returns.
i don’t chase yields, it is meaningless …only total return matters ..
i own diversified funds and most pay dividends…. i also own berkshire and they don’t.
so far the stocks you mentioned have been poor choices so far for investors..more risk then the s&p and a fraction of the return
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