Success Comes from Investing Discipline and Executing Your Ideas

How many times we have had folks discussing investing or trading ideas about which stock looks good, which stock has value, and etc, etc. I am sure many of us have engaged in such discussions. Personally, I have tried to avoid such discussions on specific stocks. Almost always, I end up asking folks about their investing paradigm or what is their focus. Surprisingly, almost every time, the answer is on similar lines. That is, does it really matter what paradigm we use? Isn’t the focus just to make more money?

We individuals fall into the trap of focusing two much on one or two successes. And we fail to look from an overall portfolio perspective. We create a portfolio that is hodge podge of many different methods. There is no discipline. The ideas that we keep discussing in pubic, we never execute on them. It is for others to execute. e.g. Look at the financial websites, all the analysts and managers writing lengthy articles discussing pros and risks of a particular company. They will explain their reasoning for investing in it. When you look at the disclaimer, it’s the clients who would own it. On majority of the occasions, they do not own for personal accounts. continue reading rest of the article….

Merry Christmas and Happy Holidays

Merry Christmas and Happy Holidays to readers of my blog. I hope you enjoy and have a good time with your family and friends.


Like you all, I will also be looking forward for a joyful and fun filled new year.

Dividend Growth Investing Is About Total Returns

growthIt is close of five year now that I have been a long term buy and hold, and dividend growth focused investor. When I meet friends, acquaintances, or colleagues, on many occasions the discussion starts from what’s market doing today and steers towards trading/investing is nothing but a poker game. I get a sense that many of these folks think that buying (and selling) stocks is just a gamble of some kind. Irrespective of this, I believe both, trading and investing, have their own set of pros and cons depending upon what context an individual is looking at it. In the end, both trading and investing is done to make money. Some use approach of capital appreciation, some use dividend income, some do trades to generate income. The key is to have a plan and execute it with consistent results.

When it comes to dividend investing, many individuals think of high yields (perhaps Cramerica syndrome!). It shows lack of patience and tendency to read too much into the business media. They do not understand dividend growth and sustainability.

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Case of Dividend Growth in Emerging Economies

growthThe list of dividend aristocrats, dividend achievers, or dividend champion is favorite hunting ground most of the dividend focused investors. This list includes companies from S&P500 index or S&P1500 index that have been continuously raising dividends last 25 years or 10 years or more. In general, these are companies that are listed on US markets. The list of companies (and dividend opportunities) will keep churning. It is really difficult to predict which ones will continue to survive for another 10 years or more. As they age, it will be harder for them to sustain their dividend growth momentum. The likelihood of their ability to grow dividend will continue to diminish.
We need to understand dividend growth in the context of growth in US economy. Dividend growth is only possible on the back of growth in corporate earnings. Keeping with the growth of US economy, many of these companies also continued to grow and hence dividends kept increasing. However, investors cannot ignore the current US economy vis-à-vis emerging market economies.

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Dividend Tree Potpourri – October 18, 2009

During the week I participated in blog carnivals and continue to read articles from fellow bloggers. I am listing some of the articles that I enjoyed reading.

Economy, Finance, Investing.…..

These are some diverse set of articles from fellow bloggers and business magazines. I hope you enjoy reading all or some of these interesting posts.

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