QUOTE(foofoosasa @ Nov 7 2010, 07:10 PM)
Doesn't seem convincing to me for no.4
Biggest mistake made by some of the long term value investor.For the bold statement,Probably it is the best strategy who don't know the intrinsic value.
I prefer to buy the business doesn't pay any dividend if they are excellent management team and meet the conditions stated by you from (1) to (3). Unless they don't know how to utilise extra equity and have to return it to shareholder.
My way of investing is like buying a stock that no different from buying a private business.For me, As long as it is a good business that can sustainable for some period of years, a great management think the business like an owner...keeping the retained earning would be much much more favourable rather than pay it out to shareholder.
Just my 2 cents
foofoosasa,
1) I am NOT long term value investor.
2) I am long term DIVIDEND investor.
The value investor need to sell their stock in order to make money. I don't. In fact, with every passing years, my exposure aka cost basis went down.
I bought PBBank when it was $7 and the dividend yield was about 8%. After a few years and collecting about $2 worth of dividend, my cost basis is around $5. My EFFECTIVE DIVIDEND YIELD is around 10% or more now.
3) As per KLSE, I do not TRUST the accounting data reported. Dividend paid is MORE REAL than any accounting report...
Dreamer
Nov 7 2010, 09:00 AM
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