What Did You Buy Today?

[Otter]

(05-04-2020, 03:28 PM)fenders53 Wrote:

(05-04-2020, 03:22 PM)Otter Wrote:

(05-04-2020, 03:14 PM)fenders53 Wrote: Hindsight is always fun to second guess.  It looks clearly overvalued now but if you sold it early 2018 when it was overvalued you just missed a double. Nobody said this was easy.  

Past earnings and stock price are the only hard data we have. By P/E ratio, DG is presently valued above forecast 2023 earnings, using its historical averages. 

Chuck Carnevale's consistent position on looking for value within the DGI space has always resonated with me. If all that mattered to me was the dividend going up each year, I'd just sell my entire portfolio and buy VDIGX.

Eric and I both give respect to Chuck's data and use it for buy decisions.  Above average growth is about the only thing that makes it tough.  As you are well aware the market assigns a huge premium for that, and we never know what year order is restored,  but it will be restored.  Fast graphs is better at telling when it's safest to buy, rather than when to sell.  Selling always the hardest part IMO.

I find selling very hard, unless the dividend gets cut or is at serious risk of being cut. GE needs 400% gains from where it is today just to get back to where it was before the first big cut in 2017 was anticipated by the market.