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Re: Spitznagel Blasts 'Buy-And-Hold': "It's More Like Hope & Prayer" From Here 

By: Decomposed in POPE IV | Recommend this post (2)
Sun, 11 Mar 18 10:47 PM | 82 view(s)
Boardmark this board | POPES NEW and Improved Real Board 		Msg. 45456 of 47202
(This msg. is a reply to 45455 by Zimbler0)
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Zimbler0:

Re: “Buying and Holding companies like Dominion Resources ('D') looks like a very good idea to me. I've owned my
Dominion Resources stock for about twenty years now.
And never regretted it for a second. The dividend checks just keep rolling in un-interrupted and it is worth a LOT more than I paid for it.”

Based on that reasoning and Dominion's stinky performance compared to Amazon and Google, you really ought to be recommending Amazon and Google today. Why aren't you?

I think it's obvious. Past performance is no guarantee of future results.

From 1938 to 1991, the S&P occasionally had a P/E above 15, but never maintained it. About as much time was spent with a P/E below 9, with occasional drops below 7. Obviously, buying when the P/E was above 15 was a poor move during those 53 years.

Since 1991, the pattern has changed and the S&P's PE has rarely fallen BELOW 15.

The question is, what changed and is it a permanent new reality?

I have my thoughts on that question, but before I express them, I'd be curious to know yours.

BTW, Dominion's P/E is currently 15.45.




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Gold is $1,581/oz today. When it hits $2,000, it will be up 26.5%. Let's see how long that takes. - De 3/11/2013 - ANSWER: 7 Years, 5 Months


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The above is a reply to the following message:
Re: Spitznagel Blasts 'Buy-And-Hold': "It's More Like Hope & Prayer" From Here
By: Zimbler0 in POPE IV
Sun, 11 Mar 18 8:14 PM 		Msg. 45455 of 47202

>>>
Buy-and-hold is not an effective risk mitigation strategy
>>>

Oh really now.
Let me see . . . Back when the dot coms were dropping
like hot potatoes Dominion Resources actually went up.

Back around 2008 and 2009 when the subprime lenders
were causing 'the end of the world' . . Big D just
kept spitting out dividend checks.

Buying and Holding companies like Dominion Resources ('D')
looks like a very good idea to me. I've owned my
Dominion Resources stock for about twenty years now.
And never regretted it for a second. The dividend checks
just keep rolling in un-interrupted and it is worth a
LOT more than I paid for it.

Mind you, buying and holding dot.coms through the Y2K
market collapse would not have been a good idea. And
I know of a couple of 'financial institutions' that
went tits up in 2009.

But good, solid, dividend paying companies which like
to increase the dividends . . . Hard to go wrong buying
and holding that sort of company.

Zim.

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