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Reading for retail investors (free): The Single Best Investment: Creating Wealth…
July 24, 2021
6:34 pm
Norman1
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Globe & Mail's John Heinzl recommended an investing book by Lowell Miller, now-retired chief investment officer of Miller/Howard Investments:

When I was starting out, one of the most influential books I read was Lowell Miller’s The Single Best Investment: Creating Wealth with Dividend Growth. It is an engaging and accessible read that will not only give you the tools to identify great dividend stocks, but will help you deal with the 24/7 onslaught of market noise that often leads small investors astray.

I’m not exaggerating when I say the book might very well change how you think about investing.

Even though it’s a U.S. book and the latest edition was published in 2006, the principles are still relevant to Canadian investors. Here’s the best part: The book is now available as a free PDF download from Miller/Howard’s website at: bit.ly/SingleBestInvest.

July 25, 2021
8:16 am
Kidd
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Investing fundamentals have changed. There's no logic in today's market, so no book, no advice can amount to a hill of beans. It's similar to someone knowing next Saturday's lottery numbers. Unless you believe in time travel... Do you?

On Monday july 19, the American stock exchange took a hit of ballpark, a 1,000 points. The reason given, a 4th wave of covid.

The person in the $2,000 Armani suit making $250,000 a year off your service fees, must give an explanation when asked, why?

The market over the next couple of days recovered that 1,000 point loss, and made new gains. Mr Armani, Oh Mr Armani, please tell us, why?

I just love when Mr Armani uses an accent, he sounds so much more intelligent. "Ah yes, the wind was blowing from the east and the water was wet." The tv commentator looks to be in awe at mr Armani's wisdom.

Friday july 23, air canada reported a quarterly loss of $837 million, and the share price closed higher. Why? Because air canda expected a loss of $859 million. Thursday's close $25.06 and friday's close $25.11. Hell, air canada should have said, we expected a loss of $3 billion and we ONLY lost $837 million. Their share price would have closed at 50 bucks.

Sometimes a pile of crap, is just a pile of crap. No matter how high it's piled. It still stinks.

July 25, 2021
8:52 am
pooreva
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Kidd said
Sometimes a pile of crap, is just a pile of crap. No matter how high it's piled. It still stinks.  

But, but, but... people are using it to make bio-gas and make pile of money, no?

July 25, 2021
9:02 am
Bill
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The point is that "today's market" and its gyrations are irrelevant to long-term investors. The boomers who chunked their dough into dividend aristocrats over the last 40 years are very happy, seems to be the point.

On the other hand, I have almost zero confidence that the next 40 years will resemble the last 40, that the happy rearview is a predictor.

July 25, 2021
11:35 am
Norman1
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Kidd said
Investing fundamentals have changed. There's no logic in today's market, so no book, no advice can amount to a hill of beans. It's similar to someone knowing next Saturday's lottery numbers. Unless you believe in time travel... Do you?

Time travel! Is that how you believe people end up with Bank of Montreal shares bought at $7 and trade $123 these days? Some with Microsoft shares bought at $25 and trade at $289.

There's no skill in lotteries. I would actually say it is lack of skill to pay $3 for a ticket that is actuarily worth less than 50¢.

Investing fundamentals have not changed. Seeing stock quotes fly across a flat screen monitor instead of punched on a ticker tape is not significant.

I just love when Mr Armani uses an accent, he sounds so much more intelligent. "Ah yes, the wind was blowing from the east and the water was wet." The tv commentator looks to be in awe at mr Armani's wisdom.

I think you would benefit tremendously from reading the book. You'll learn to ignore the entertainment industry that has sprouted up around investments.

July 25, 2021
1:28 pm
Alexandre
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This is good reading, but like history book you read about old good times. Thanks for sharing, Norman1.

Norman1 said
Time travel! Is that how you believe people end up with Bank of Montreal shares bought at $7 and trade $123 these days? Some with Microsoft shares bought at $25 and trade at $289.
There's no skill in lotteries.

I remember riding an elevator in one of those skyscrapers in downtown Toronto, and one man saying to another "Nortel is at $10, it won't go lower, time to buy."

I remember RIM flying at $130, the monopolist in smartphones with the iron grip on corporate and military. Steve Jobs said himself, revealing iPhone, "it is not competitor to BlackBerry smartphone."

One can dismiss people who lost a lot on their investments as unskilled, as those who did not follow proper rules of investments clearly laid out.
But, by the same token, we could dismiss people losing in lottery because "they do not follow the sure win system."

Investing fundamentals have not changed.

Fundamentals, as they were taught by professors to MBA students, also those in the book by Lowell Miller, have not changed. The world have changed.

Current stock market is popularity contest. Not much more.

For me, the financial world as we know it according to Miller died long time ago, and I remember exactly when it happened. It were the day Netscape went IPO. They were the first well known company to honestly state in IPO Filings that they are not profitable, may never be and do not plan to.
That IPO, if you remember, was successful.

Since then, it were only downhill.

July 25, 2021
2:26 pm
AltaRed
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I am a believer in broad based index investing on a global basis. That index, e.g. MSCI world index, will always trend to the northeast over rolling periods of time. I am not a believer in 'all out' commitment to a specific investing strategy as all of them will have hot and cold periods.

That all said, a Dividend Growth investing strategy has generally done well if for no other reason that most dividend growth stocks are large cap blue chips and most will not over commit on their dividend growth rates lest they be forced to cut their dividend in a poor business environment and be severely punished, often for years, for doing so. Like anything else though, Dividend Aristocrat stocks are not all created equal. The CDZ ETF for example contains, in my opinion, some junk, mostly in the high yield category.

July 26, 2021
4:13 am
Kidd
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OKAY... but what does any of this have to do with my ever increasing home insurance?

July 26, 2021
4:40 am
Bill
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Kidd, the connection, the sunny side view, is the blue chips in the insurance/financials industry that are regular dividend growers.

And actually you have to do a "per cent of average income" or similar-type analysis to convince me insurance cost increases are out of whack. Heard a Montreal restaurant owner on the radio say $15/hour minimum wage is irrelevant these days, he now has to pay a dishwasher $25/hour or nobody wants the job. So need to consider wages inflation too to know for sure.

Please write your comments in the forum.