03-07-2015, 11:43 AM
M$$I asked me to start a thread on some notable quotes from my portfolio business plan.
I have to preface this with the caution that these are points that I want to keep in the back of my mind as I work toward my goals. I don't particularly care what Warren Buffet, Jeremy Siegel (sp?), Lowell Thomas or Benjamin Graham said. They're all successful people who are far removed from the life I'm living and I'd never get to talk with them about anything anyway so the personal connection just isn't there. Besides, you can pick up any of their books, papers or transcripts and dig them out any time. There's tons of great literature and research out there. There's one quote in here that is supposedly from a famous person but only because it really spoke to me. It's the reason I've held on to some companies -- Intel, Mattel and Ensco come to mind -- for so long.
Secondly, I was hesitant because these threads can be quite long. You can find nuggets of wisdom everywhere. Out all these bits of wisdom, the only ones of value have to speak to you personally. When you add paragraphs upon paragraphs, the message tends to get diluted and then you're back to square one - a myriad of facts and suggestions to sort through. Look at how long this introduction has become.
Lastly, they speak to foibles that I may recognize in my own thought process and want to guard against being totally idiotic. So, that being said and without further ado, here are the quotes in my portfolio business plan. I'll add to them as I find any. Feel free to add as you want.
I have to preface this with the caution that these are points that I want to keep in the back of my mind as I work toward my goals. I don't particularly care what Warren Buffet, Jeremy Siegel (sp?), Lowell Thomas or Benjamin Graham said. They're all successful people who are far removed from the life I'm living and I'd never get to talk with them about anything anyway so the personal connection just isn't there. Besides, you can pick up any of their books, papers or transcripts and dig them out any time. There's tons of great literature and research out there. There's one quote in here that is supposedly from a famous person but only because it really spoke to me. It's the reason I've held on to some companies -- Intel, Mattel and Ensco come to mind -- for so long.
Secondly, I was hesitant because these threads can be quite long. You can find nuggets of wisdom everywhere. Out all these bits of wisdom, the only ones of value have to speak to you personally. When you add paragraphs upon paragraphs, the message tends to get diluted and then you're back to square one - a myriad of facts and suggestions to sort through. Look at how long this introduction has become.
Lastly, they speak to foibles that I may recognize in my own thought process and want to guard against being totally idiotic. So, that being said and without further ado, here are the quotes in my portfolio business plan. I'll add to them as I find any. Feel free to add as you want.
- “I have a few general rules I live by. First, diversify, but do not go crazy. Stick with your good ideas. Second, never panic. Third, watch the business fundamentals and let someone else watch the technical aspects. Fourth, seek to hear or read good advice. Fifth, hold some cash so you can buy from panicked sellers as I did in 2008, 2009, and in the first quarter of 2014. And last, but not least, always take advantage of dividend reinvestment for low cost compounding.”; Kevin Arledge on Seeking Alpha, April 2014
- “Markets can remain irrational a lot longer than you and I can remain solvent.”; Attributed to John Maynard Keynes by some, researchers also point to A. Gary Shilling
- “Another reminder that holding long term means riding out down / sideways periods that can last for years.“; Kerim of DividendGrowthForum.com discussing Intel's surprise earnings report and price hitting 52 week high
- “While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.”; earthtodan of DividendGrowthForum.com discussing the meaning of the ex-dividend dates and timing your purchases
- “Over my career, when I have encountered clients that were stressed over falling prices during a bad market, I have often utilized a metaphor that has resonated with most of them. I start by asking them if they own their home, and most of them have said yes. Then I ask them if they have a general idea of what their house is worth, again, most of them say yes. I tell them not to give me an exact number, but ask them to have a specific number in their mind.
Finally, I ask the important question that puts things into perspective for them. I am prepared to present you a cashier's check right now for exactly half of the number you are holding in your mind, will you sell me your house at that price? Without hesitation, the answer is an unequivocal and confident heck no; I would never sell my valuable house for such a ridiculously low number.
From there I proceed to point out that I have just placed a bid on their house and that my bid is no different than the ridiculously low bids that the stock market is placing on their stocks.”; Chuck Carnevale on Seeking Alpha, September 2014
- “That’s not to suggest that people invest cash they can’t afford to put at risk; there’s nothing wrong with taking risk off the table, especially at a time when the market makes you nervous, but if you are waiting for the “perfect” time to be in the market — when you are comfortable, confident and worry-free — you’re never going to find it.”; Chuck Jaffe in a Marketwatch article entitled '6 Bad Reasons To Make Changes To Your Portfolio', March 2015
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“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
