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about_us 2018/09/06 05:57 about_us 2018/09/22 09:27 current
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  * you must believe it works - evidence is provided   * you must believe it works - evidence is provided
  * temperament to hold as the magic is fulfilled - expect a 12% return: initial yield plus dividend growth   * temperament to hold as the magic is fulfilled - expect a 12% return: initial yield plus dividend growth
 +
 +  * You are not buying into modern portfolio theory. Unless you are very lucky, you cannot win by doing what other investors do. Dividend growth investors have to do things differently.
 +__We do not want professional management of our money__. Why not?
 +▪ Professionals are indoctrinated by modern portfolio theory
 +2. ▪ Professionals are constrained by benchmarks: they cannot lag their peers.
 +“ The measuring rod itself often causes trouble” Economist May 5 2018
 +▪ Professionals are too active - “Trading is Hazardous to your Wealth” ▪ Professionals are short-term oriented. Value is in future cash flow.
 +There’s client pressure – For instance, why don't I have more FAANGS in my portfolio?
 +▪ Professionals have way too many securities in their portfolios. * ▪ Professionals buy at the wrong time (W. Buffett’s Forbes column, Aug 6 1979)
 +The efficient market [hypothesis] isn't always...just usually. It's a big mistake. ▪ Professionals focus and measure too much on price. We want cash flow in retirement. ▪ Professionals lean toward equal weighting rather than owning more of the best firms. *
 +Most professionals do not beat the market.
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