02-28-2019, 08:33 PM
(02-28-2019, 03:48 PM)Otter Wrote: I'd rather invest in tech than basic materials, which are a whopping 1.23% of my income stream. There are even fewer materials companies (than tech cos) that manage to be stable enough to reliably pay a dividend, much less increase it annually.
I absolutely agree. The basic materials companies do have a problem remaining stable enough to be a DGI candidate. I believe in the DGI strategy, but a buy and mindless hold strategy can easily fail in many sectors. A heavy dose of my opinion, but tech stocks just have to be handled differently. You have to be willing to pay a somewhat higher valuation for the best quality, but if you pick a highly successful tech you have to have the good sense to move some of the profits to something far more stable such as a Ute or a boring consumer stock. As I said just my opinion. We can all quickly think of a dozen tech companies that worked out very well for a 20 year hold as long as you didn't buy an extreme top. I can think of 50 techs where a lifelong hold was just a bad idea unless you got in very early, but the risk was extreme at that entry point.
I'm not suggesting techs should be traded constantly, but it's my opinion you are wise to manage them much different than PG or JNJ. And always buy low lol. That is exactly what you are suggesting with QCOM. The current PE isn't exactly bottom feeding, but it isn't 75 either. I have more reading to do on QCOM. The Div is way above typical, and I need to understand how this happened before I get in very deep.