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

To: Jurgis Bekepuris who wrote (54672)

1/1/2015 4:36:33 PM

From: Grommit

Read Replies (1) | Respond to of 78618

This yahoo chart shows reit index up 22% and NYSE up 5.4%. The reit index may be correct but the NYSE is only up 4.2% 2014 -- going from 10,400 on 12/31/13 to 10,839 12/31/14. Maybe yahoo started with 1/1/14 open and not 12/31/13 close?? And be aware that the chart ignores dividends. I am not sure of the div rates for the two, but reits prob average 4% to 5%, and the S&P is presently at 1.8%.

Anyway -- reits were good for me this year, and not good last year. Click on the "2 year" option to see.

CHART

I am presently 5% cash, 6% utility, 5% other common, 26% pref stocks, 58% reit common.
Present yields are reits 5.4%, pref 6.9%, utility 3.1%, other 1.9% -- overall 5.5%
I was not always at this wimpy mix. I was heavy into energy trusts, energy stocks, & others in the past. I got wimpy after the 2008 crash, loading up on beaten up pref stocks at that time.

	Grommit	NYSE

2014	22.3%	4.2%
2013	4.1%	23.2%
2012	22.1%	12.9%
2011	7.0%	6.1%
2010	29.0%	10.8%
2009	111.5%	24.8%
2008	-50.7%	-40.9%
2007	14.8%	6.6%
2006	17.5%	17.9%
2005	29.0%	6.9%
2004	24.1%	12.2%

simple ave	21.0%	7.7%
compound %	15.4%	6.0%

maybe add 2% to NYSE for dividends = 8%

To: Jurgis Bekepuris who wrote (54672)	1/1/2015 4:40:43 PM
From: Grommit	2 Recommendations Recommended By E_K_S Spekulatius Respond to of 78618

>> Ignoring benchmarks is stupid when you can put money into index fund and get that return instead of underperforming for years. It is even more stupid if you could put 80% of money into index fund, 20% into cash for a crash and still outperform your "active" strategy. I don't agree with all of the article either. And I agree if you think that you cannot beat an index, than you should invest in the index and save your efforts. My point was that investing in dividend / income, and being satisfied with that level of income, allows me to make my 6% and (try to) ignore benchmarks.