04-01-2014, 04:06 PM
(This post was last modified: 04-01-2014, 04:07 PM by Dividend Watcher.)
Good point, Eric. I never have either but I guess I wasn't clear enough in my post.
The thing that irked me was the idea of ruling out companies that would "tend to fall further than the broad market index". Unfortunately, the statistic that best shows this tendency for both a rising and falling market is beta hence using it interchangeably with "tend to fall further than the broad market index". That was the lazy man's way out of all that typing.
The gist of the article was that if you're going to rule out stocks that "tend to fall further than the broad market index", you may be missing out on some very good long-term holdings. Perhaps a better title may have avoided some misunderstanding.
The thing that irked me was the idea of ruling out companies that would "tend to fall further than the broad market index". Unfortunately, the statistic that best shows this tendency for both a rising and falling market is beta hence using it interchangeably with "tend to fall further than the broad market index". That was the lazy man's way out of all that typing.
The gist of the article was that if you're going to rule out stocks that "tend to fall further than the broad market index", you may be missing out on some very good long-term holdings. Perhaps a better title may have avoided some misunderstanding.
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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