Investing from within the Echo Chamber

I love my DOGS. Everyone gets that knowing when to sell a stock is much tougher than picking the one to buy (or it is identified as one of the great shortcomings of the individual investor). Yeah, yeah, we make it easy for ourselves: simply buy high, sell low, right? And that is the exact reason why I love my DOGS: buy/sell decisions are based on my simplistic calendar and spreadsheet methodology. Is it November? Check. Is this stock Continue reading


2014, the Home Stretch

Having built these portfolios around November last year, I’m getting to that point where it’s time to dig deeper into my holdings and review possible candidates. My rules stipulate that I track holdings for sudden changes, but yearly reviews include candidate comparisons and dividend distributions.

Before I get to the reviews including a a look at performance, I have to share this gem from Motley Fools –

Imagine you pick 1 million random people from around the world every day,” said Toby McDade, chief investment officer of Momentum Fee Capital Management. “Some days, 51% would be in a good mood, 49% in a bad mood. The next day maybe it’s the opposite. Other days, random chance could mean 8% of people are really pissed off for no real reason. This is basically what the market is on a day-to-day basis,” he said.

Asked what his clients thought of this view, Mr. McDade laughed. “Oh my God, you think I could tell my clients that? How could I justify my salary?” Clients were told Monday’s gain was caused by a mix of reversing geopolitical instability, shifting uncertainty patterns, a risk-on atmosphere, and a perfect storm of beta meeting sigma. Noone knew what those words meant.


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The Coca-Cola Company reports Q4 results

Yesterday, Coca-Cola reported earnings per share of $0.38 and $1.90 for Q4 and FY’13, respectively. Both represented drops of earnings over comparable previous periods as a result of a combination of flat consumption and unfavourable currency headwinds.

Coca-Cola’s 2014 guidance warns of continuing currency pressures in the coming quarter resulting in operating income decreases by as much as 10% in Q1, and as a result, the stock found it’s way down by 4% on the day.

Coke makes up 20% of my US holdings portfolio, so, while pressures on earnings does cause some concern, I was pleased to see that KO increased it’s dividend for the 52nd straight year. For shareholders of record on March 14th, quarterly dividends increased from $0.28 to $0.305, a solid 8.9% increase. I will provide updates to KO’s payout ratio once the 10-Q and K are filed, as I do not subscribe to the brain-dead dividend/earnings calculation, preferring instead a more telling look at free cash-flow (FCF).

Presently, The Coca-Cola Company is paying a 3.3% yield.