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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (49052)	8/10/2012 10:34:30 AM
From: Sergio H	2 Recommendations Respond to of 78521

One more consideration on utilities companies, not relevant to their P.E. but to their book value, is the huge amount of land that they own. Some of these companies have realized that they have the ability to improve shareholder value by disposition or finding profitable use of this asset, but generally these land holdings have been used for recreational purposes. The land holdings provide another reason for finding utilities as a safe harbor.

To: Paul Senior who wrote (49052)	8/10/2012 11:38:49 AM
From: thatsnotluck	Respond to of 78521

<<I'm trying to say I hold some stocks that I believe to be growth stocks. Or at least that I believe others would say might be growth stocks. I'm not now suggesting here about them (all the ones I mentioned) that they are value stocks >> i recall reading many years ago a statement by someone whose name i do not remember, a statement that i wish i were able to execute on with any kind of regularity (but alas cannot)...something like: 'i try to buy value stocks and sell them when they become growth stocks'

To: Paul Senior who wrote (49052)	8/10/2012 12:03:54 PM
From: deeno	2 Recommendations Respond to of 78521

Its seems, through your posts, that you remain an investor truly interested in "value". You comment about buying shares as a stock drops and lighten the load as they become over valued. Assumming that this strategy has worked for you over the ages, your only risk seems to be "is it different this time?". In the case of utilities you see that the historic valuations that you use are out of kilter with your definitions of risk and reward. Isnt that how you have defined overvalued? Look at it this way, how many analysts, investors, newsletters etc. DON'T tout the value of dividends? Look at REIT yields amazingly low, MTG REITs are popular again, Utilities paying 2%? Remember when the NASDAQ was going to trade higher than the DOW? There will ALWAYS be a reason that some industry or trading strategy is going to grow to the moon. Is there anyone out there, (well other than Ahhaha), that thinks that dividend paying stocks are NOT a good idea? Group think, Thats what keeps them popular. Popular = pricey. unpopular = cheap. In all good consciencous I can't see why you would keep any of these positions. You are correct IMHO the risk reward versus "growth" stocks just isnt there. It is highly likely that the "dividend " strategy will underperform for a number of years (starting when? who knows). It is the hope of most that they will be able to get out in time (or reallocate). It doesnt take much of a downtick in dividend paying stocks to kill any chance of a decent Total rate of return. You seem to have a very consistant style of investing. You actually HAVE an escape plan. Value. You may be early by a couple of years, but why would you want to ignore what has worked in the past. Is it different this time? NO. Sell off a few shares from time to time just like you planned. Good Luck!