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Fourth Quarter 2015

• The main reason dividend growth investors run our own income 'fund' is because we can perform much better: ♣ We can concentrate on superior dividend growers - funds over diversify with hundreds of stocks, a lot are losers. ♣ In aggregate our income rises each year - most funds do not increase distributions annually. ♣ Dividend growth investors pass all the income along to ourselves - some funds don't. Imagine! ♣ We reduce risk with at least fair price purchases by using yield, Graham value and cape - most funds are always fully invested. ♣ We are disciplined and patient - managers often follow the crowd to keep their job. ♣ We hold for the growing yield - they trade (eight months is the average holding period with funds). ♣ We do not pay capital gains tax on profit we do not receive - fund holders do. ♣ We do not pay annual fees - most fund owners pay over 2% per year.

  • “The classic 60/40 balanced portfolio is not true diversification. Indeed, one of the best-kept secrets of the investing community is that stock market return so dominates the risk of a 60/40 portfolio that the portfolio exhibits a 98–99 percent correlation with stocks!” Rob Arnott
fourth_quarter_2015.1449523306.txt.gz · Last modified: 2015/12/07 16:21 by tom
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