Crucial Concept

All day I’ve been seeing Tweets linking to The Unofficial Dividend.com Guide To Being An Investor so I finally clicked through. It is a great list of investing truisms/rules of thumb. Chances are you’ve seen at least some of them before. My favorite one was Missing an opportunity is frustrating. Losing capital is destructive. Investing quite obviously involves quite a few different kinds of risks and a diversified portfolio will be exposed to a lot of them if not all of them but that does not mean anyone has to be overly exposed to a lot of them or all of...

Crucial Concept

All day I’ve been seeing Tweets linking to The Unofficial Dividend.com Guide To Being An Investor so I finally clicked through. It is a great list of investing truisms/rules of thumb. Chances are you’ve seen at least some of them before. My favorite one was Missing an opportunity is frustrating. Losing capital is destructive. Investing quite obviously involves quite a few different kinds of risks and a diversified portfolio will be exposed to a lot of them if not all of them but that does not mean anyone has to be overly exposed to a lot of them or all of...

Great Quote

Charles Kirk has a post up about sharing trades (or not) via social media. Included was the following; All strategies will require making tough and unpopular decisions at times.  The message I take from this has to do with staying disciplined and faithful to a strategy you believe is best for your long term goals. As we’ve talked about many times since the beginning of this site, no strategy can be the best for all times but many strategies can get the job done in the long term. This has been a great year for indexers, really the last couple of years. The previous decade was lousy for indexers. In the future there will be periods that are again not good for them and periods like now that are. Indexers know they will have a tough time in decades like the 1970’s and 2000’s and even during fads/manias. The 2000’s were tough because not much progress was made which can lead to impatience. The late 1990’s were tough for indexers because other people appeared to be getting rich buying stocks like sock-puppet dot com and making 1000% in two months which again can lead to impatience. Any strategy with a reasonable basis for working will at times be the best but there are times where it will not. Once you figure that out it will make it easier to remain focused on whatever is important to your long term...

Great Quote

Charles Kirk has a post up about sharing trades (or not) via social media. Included was the following; All strategies will require making tough and unpopular decisions at times.  The message I take from this has to do with staying disciplined and faithful to a strategy you believe is best for your long term goals. As we’ve talked about many times since the beginning of this site, no strategy can be the best for all times but many strategies can get the job done in the long term. This has been a great year for indexers, really the last couple of years. The previous decade was lousy for indexers. In the future there will be periods that are again not good for them and periods like now that are. Indexers know they will have a tough time in decades like the 1970’s and 2000’s and even during fads/manias. The 2000’s were tough because not much progress was made which can lead to impatience. The late 1990’s were tough for indexers because other people appeared to be getting rich buying stocks like sock-puppet dot com and making 1000% in two months which again can lead to impatience. Any strategy with a reasonable basis for working will at times be the best but there are times where it will not. Once you figure that out it will make it easier to remain focused on whatever is important to your long term...

Public Post Offices?

The UK post office, the Royal Mail, is going public. The UK has a long history of this sort of privatization but most of the big ones came in the 1980’s and early 90’s. The threats to any post office are obvious and there are a lot of them; paying bills online, email, magazine-like content on the web and even online banking. There are also probably fewer catalogs that get mailed out but that might be offset by the delivery of of the stuff we buy online. I wrote about this story twice for the Street.com earlier in the summer which you can read here and here, if you’re interested. Generically speaking there is a lot of room for gains in efficiency stemming from technological advancement and in the case of Royal Mail, getting the government to absorb the pension obligations. Taking the Royal Mail public has been controversial for several reasons including concerns of the workers over their future. The deal has been structured to try to appease employees by giving all of them a few shares and committing to pay a large dividend. We’ll see how large the dividend is but there are three other European post offices that are publicly traded; Deutsche Post which yields 2.8%, Oesterreischeische Post which yields 5.3% and earlier this year Bpost went public priced to yield 5% but it hasn’t paid a dividend yet. Oesterreischeische is Austria and Bpost is Belgium. The first two have performed well but it is a little early to draw any conclusions on Bpost. Over the years I have written quite a few posts about market...