Ode to the Mantra

It would appear that another fixture in the DGI community has bitten the dust.  I don’t know the full story – and I doubt many do – but whether it was greed, misrepresentation, miscalculation, lack of understanding, or a combination of these Dividend Mantra is no more.  Long Live The Dividend Mantra Team?

Reviled by some, but revered by many, through his knowledge and hard work successfully monetized his passion.  From media  interviews to authoring a book, he built the Dividend Mantra brand from nothing to something.  But his most lasting accomplishment is the number of people that became investors through his inspiration.

This is not to say I agreed with all of his decisions, I didn’t.  Orchids Paper is not a DGI stock.  It’s yield chasing.  I was surprised when he added it.  Yes I own it – but I’ve been to their Oklahoma plant.  And I reduced my holdings prior to their secondary.  He and I also disagreed on his decision to sell Sysco.  So it’s dividend wasn’t growing fast enough?  Well when you buy into a company just after the ex-div date and sell it prior to an ex-div date you’ve artificially reduced your return. He had a extreme dislike for the YoC metric, I tend to favor it.  His doubling into BBL is questionable, particularly with their exposure to Materials and China.  It could wind up being very profitable but their loss of a dam at their Brazilian mine last week doesn’t help.

His overall success has been well documented, which makes this latest chapter all the more perplexing.  Previously he stated a desire to offload the work required with his blog’s popularity.  He obviously was a willing seller and he located an obviously willing buyer.  My guess is after the contracts were signed, DM realized he gave up editorial control, evidenced by his post that some blog sections would no longer be published.  Likewise, the buyers have come to realize (belatedly) that a blog’s popularity is a reflection of its creator – not the owner.

Is it now too late to recover?  Well the jury’s still out.  I fear that DM the man will be late to realize he has lost – perhaps destroyed – the orchestra.  It is unfortunate the benefits he enjoyed will be diminished as well.  And DM the team is obviously late to recognize they bought the music but not the conductor.  Meanwhile the patrons are fleeing to the exits.  Any hope for recovery is reduced by the day.

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