Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: Triffin who wrote (9864)	8/16/2011 1:35:35 PM
From: Tapcon	Respond to of 34328

Excellent article!

To: Triffin who wrote (9864)	8/16/2011 9:41:35 PM
From: Jacob Snyder	Read Replies (1) \| Respond to of 34328

Excellent article, thanks for posting it. on beta: 1. Most investors confuse volatility and risk. Volatility is the odds a stock will go up and down a lot. Risk is the odds it will go down and stay down. Beta is not a measurement of risk. 2. If you want to buy a stock, hi beta is good. You can be patient, wait till the stock is out of favor, and buy it at a low price. The higher the beta, the better the odds of buying it really, really cheap, at some point. 3. If you might want to sell the stock, hi beta is good. You can be patient, wait till it is in favor, and sell it at a high price. Hi beta stocks get really absurdly overvalued at times, which are excellent selling opportunities for those able to overcome their Herd Instinct. 4. If you are holding a stock, and have no intention of either buying or selling, then (as long as the dividend keeps getting paid and increased), you don't care what the stock price is. In this case, beta doesn't matter. 5. My Rules say nothing about avoiding volatile stocks. I use other investor's fear of volatility, to my benefit.