04-01-2014, 07:44 AM
Sounds like someone talking out of both sides of his/her face to me. On the one hand they would say, [I'm not interested in share price fluctuations, I'm only interested in the dividend stream and whether or not the company continues to execute.] But the quote above, says the they do care about market fluctuations of share price. I'm with you, all that really matters is how a company continues to execute. Just because the market overly punishes the shares price, when a company gets lumped in with an entire sector or investment class that is out of favor, that means nothing about the company and may in fact present a tremendous buying opportunity. So for me, it is hard to generalize simply based upon beta. Regardless of beta, the stock of a company that continues to execute and out perform, will generally give the share holder out performance as well.
Alex