Slowly, But surely

As I ponder over the direction this blog will take, I’ve visited several – and commented on a couple. I’m generally impressed by the logical thought expressed by the community overall. In fact the topic I’ve encountered generating the most passion is one debating the merits and benefits of types of investing, notably Dividend Growth versus Total Return.

I would postulate these strategies are not mutually exclusive, either in practice or over the course of time. In fact, I would theorize very few of us are purists. As an example, in my younger days I had the luxury of ‘investing’ in the growth stocks of yesteryear – until the dotcom bubble burst. Today my investments are primarily income generating. My focus is more on Yield (sustainable) than Growth, Consistency rather than Appreciation. I believe that as I get older I am becoming more risk averse. You won’t see a PSEC or ARCP in my portfolio due to dividend sustainability concerns. Likewise, BBL has no place either. The 2% yield premium over a SYY for example, is not adequate compensation for the FX or geopolitical risks (albeit, perhaps perceived). Stability over Momentum.

But I do like my toys. MSG has a place in my holdings and I can brag about owning the Knicks. No dividend, but this year the value had a nice pop on spinoff speculation. Regional banks typically have a lower yield than is preferred by many DG investors but there is significant M&A activity in this space. My portfolio has been rewarded with both sides of the (pending) WSBC/ESBF merger.

I guess my message is to look for value where you find it at a price with which you are comfortable. If your research is accurate your reward will be in the profit.

Eventually I will publish my portfolio – after I pretty much figure out this blogging thing.  Meanwhile I’ll toss out random thoughts or ideas as I see fit.  Till next time …