05-12-2014, 09:28 PM
(This post was last modified: 05-12-2014, 09:29 PM by Dividend Watcher.)
I read this a few times and had to ponder over it.
Regardless, I think it was an awesome effort, Dan. Now you have something solid to refer back to and refine. I found my plan made me think more with each transaction and how it affected my goals.
Have you tried your formula on a test portfolio of 20-30 stocks? Were the results as expected? I like that you're using a rating system. I've been mulling that over for a while since, at these levels, you have to be more selective. Just haven't come up with something definitive that I like yet.
My one concern or question is about the 'c' (your conviction) variable. Is that to add your own 'gut feeling' about the stock or is that an out to push something higher up in the ratings because you 'like' the company. Don't let emotions control the process. You can't eliminate emotions entirely but something to be cautious about.
Great job!
Regardless, I think it was an awesome effort, Dan. Now you have something solid to refer back to and refine. I found my plan made me think more with each transaction and how it affected my goals.
Have you tried your formula on a test portfolio of 20-30 stocks? Were the results as expected? I like that you're using a rating system. I've been mulling that over for a while since, at these levels, you have to be more selective. Just haven't come up with something definitive that I like yet.
My one concern or question is about the 'c' (your conviction) variable. Is that to add your own 'gut feeling' about the stock or is that an out to push something higher up in the ratings because you 'like' the company. Don't let emotions control the process. You can't eliminate emotions entirely but something to be cautious about.
Great job!
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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