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  #5611  
Old 09-07-2016, 07:01 AM
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Pretty interesting look into DGI, thanks for posting Sieg. I'm now following the author to make sure I don't miss future updates on the portfolio.
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  #5612  
Old 09-10-2016, 08:52 AM
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So here's CRAMERS view of the market:


"Being prepared means selling or trimming not just stocks you're indifferent to, but even the stocks you like, betting that you can buy them back at a lower level."

-Jim Cramer



Let's discuss this for the average investor. Cramer is talking to people with trader brain. He's talking to people that watch the markets move every minute of every day. THEY can TRY to time the market by capturing their gains (inducing a tax event).... sitting on the sidelines.... and waiting in the hopes that they catch the right move in their stocks. In the meantime - they miss a dividend payment.... in the meantime they'll NOT catch the bottom because they'll either be busy with LIFE -- or the market will move HUGE in one day - and they'll miss that - and then chase the market up.

My point??


I've been doing this for 30 years.... I'm trying to impart a tiny bit of what I've learned over the years. I keep huge amounts of cash on the sidelines. BUT I CAN AFFORD TO DO THAT. I'm already rich. You guys are trying to get rich or get your retirements rolling. I guarantee you're not going to get this right. And you'll create a taxable event etc.

Please don't react to every little nuance in the market.

Here's what I do during market corrections or "dips" or whatever you want to call it --- I don't sell --- I use these events to add to positions. But I have cash on the side so I don't have to sell.
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  #5613  
Old 09-10-2016, 09:21 AM
XLexusTech XLexusTech is offline
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I agree but with a minor add... I stock up long positions that are long past short term gains liability... Then if I have big upsides on them (think over 75%) I may trickle some of that out and buy back during a low...

It's really 99% hold long with some opertunistic sales and buy backs... Trick I follow is to always have some of position be in hand longer tha 2 years so you can ladder . Look up CD laddering for an example




Quote:
Originally Posted by GregWeld View Post
So here's CRAMERS view of the market:


"Being prepared means selling or trimming not just stocks you're indifferent to, but even the stocks you like, betting that you can buy them back at a lower level."

-Jim Cramer



Let's discuss this for the average investor. Cramer is talking to people with trader brain. He's talking to people that watch the markets move every minute of every day. THEY can TRY to time the market by capturing their gains (inducing a tax event).... sitting on the sidelines.... and waiting in the hopes that they catch the right move in their stocks. In the meantime - they miss a dividend payment.... in the meantime they'll NOT catch the bottom because they'll either be busy with LIFE -- or the market will move HUGE in one day - and they'll miss that - and then chase the market up.

My point??


I've been doing this for 30 years.... I'm trying to impart a tiny bit of what I've learned over the years. I keep huge amounts of cash on the sidelines. BUT I CAN AFFORD TO DO THAT. I'm already rich. You guys are trying to get rich or get your retirements rolling. I guarantee you're not going to get this right. And you'll create a taxable event etc.

Please don't react to every little nuance in the market.

Here's what I do during market corrections or "dips" or whatever you want to call it --- I don't sell --- I use these events to add to positions. But I have cash on the side so I don't have to sell.
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  #5614  
Old 09-11-2016, 09:36 AM
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Trimming PROFIT (gains) is never a bad thing to do.... particularly if you're re-investing and diversifying with those captured gains. Just remember that you're triggering a taxable event.


Now then ----- I've stated 100 times in this thread.... another overused and often stated:

"when interest rates rise the stock market dies"

In other words -- just like HOUSING PRICES will do -- when interest rates climb to some ARBITRARY RATE - at some point prices must come DOWN when Interest rates rise or they become unaffordable (on a monthly payment basis).

Stocks come down to constantly adjust the yields to reflect current (future actually) thinking. If MONEY can earn X other there -- and it's more than MONEY can earn here - people sell and move the money. Simple. There MUST BE a correlation between price paid and return on investment. EVERYONE is looking for the same thing. It's not magic!

If you're in to 3% or 4% and less dividend payers -- and you'd bought them last week --- you're going to take a hit!

But if you bought the shares months ago -- or a couple years ago -- then you're still collecting a very nice % dividend yield on YOUR COST BASIS.... and when the price of the shares drop - your reinvested dividend will buy more shares.

Now then ------------- LOOK AT YOUR COST BASIS.... compute YOUR dividend return rate..... and if the shares are UP 25% and oh gee! Heaven forbid your shares declined 4% on Friday..... Really?? You're worried about that?? If you sold now ---- and then realized you have a bunch of cash but no investments earning money --- and now you get back in -- you've just paid inflated prices for the "new" shares.

WE ARE NOT THE BIG MARKET MOVERS AND SHAKERS -- WE ARE NOT TRADERS -- WE ARE INVESTORS. We should see a market decline as opportunity to add to our nest egg.... not RUSH IN... but pay attention and tip toeing in constantly is going to serve you well years down the road.

Remember to go to the charts and stretch 'em out and look at all the squiggles in the line... oh yeah -- that's it! They represent price movement up and DOWN... but it's the general long term TREND that's important. Not todays news.
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  #5615  
Old 09-12-2016, 07:02 AM
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Keep preaching it Brother Greg...I've bought in to DGI investing and it's true, I didn't even pay attention to my stuff last Friday. Too busy with life and all.

Big drops like that used to eat me up, not any more.
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  #5616  
Old 09-12-2016, 07:23 PM
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Lance, what does DGI mean? (funny cause my company is DublinGlassInc, but we're not public lol)
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  #5617  
Old 09-12-2016, 07:26 PM
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Quote:
Originally Posted by GregWeld View Post

your reinvested dividend will buy more shares.

The hugest thing i've taken away from this thread over the last 3+ years, i had no idea otherwise, and STILL haven't heard it mentioned anywhere else on the investment stuff i follow (part time)......
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  #5618  
Old 09-13-2016, 01:29 PM
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Quote:
Originally Posted by glassman View Post
Lance, what does DGI mean? (funny cause my company is DublinGlassInc, but we're not public lol)
Dividend Growth Investing
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  #5619  
Old 09-13-2016, 10:34 PM
JKnight JKnight is offline
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The other thing to possibly keep in mind is businesses with large amounts of 'float' cash are going to make a lot of money from interest income as rates go up. So you might be able to capitalize on that while still picking up a dividend (albeit a smaller yield compared to many stocks discussed here. Think: banks and brokerage firms.

Yes, some of this is already 'priced in' on the stock, but it's worth keeping in mind if you want to invest in a financial name you like.
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  #5620  
Old 09-15-2016, 11:02 AM
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It's already been three years since I started investing EVERY month. It's turned into a nice sum with a reasonable gain at this point. I like the green days, but I've learned to be patient and let time be on my side. I'm still looking at 25-30 years before I plan to touch these investments. (Unless a position looks weak)

It's been fun for me to analyze and make my own moves. The natural side effect has been getting more involved with our other investments.

On the personal side, we've learned to live well below our means. That gives us the flexibility to save aggressively. In turn, that allows for more discretionary time to enjoy our lives.

In addition to saving, I think it's very important to have solid long term goals and vision. That's really what keeps you saving aggressively. It's amazing once we have a target, how often we are drawn subconsciously. I can't tell you how many times I've written down a goal and achieved it and went, wow, this really works. Many times I've nearly forgot about it, but it was ground way down in my mind. The key is to write it down, scheme and plot, and then start down the path.
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