re: How NEARLY not to lose money 4 Arthur When I see a long hop...

re: How NEARLY not to lose money 4 Arthur When I see a long hop I dispatch it to the boundary Mr exotic furry rat. That is my nature. I am indeed an institution on this forum, known by all as a bigotted anti-TA ranter since 1854.

Arthur, in all seriousness, I suppose I try and buy stocks that have a div yield now and that I have a reasonable hope will increase their dividend next year.

This is what my guru, Dr Burton Malkiel advises:

(1) Only buy companies that you believe will be able to sustain above average growth for next 5 years.
(2) Never pay more than is justified by a firm foundation of value - measured by PE. A high PE is ok if growth is visible; but avoid companies where PE is high and the market has priced the growth in already.
(3) Buy stocks with stories of anticipated growth that will cause investors to build castles in the air (like, dare I say it? CST).
(4) Trade as little as possible but sell losers after a year.

And this is what Dr Merrill Lynch said once:
Buy stocks where:
(1) Div yield is above the market average.
(2) Earnings yield (= 100 / PE) is 3% above ten year bond rate.
(3) There is financial strength (eg Debt/Equity < 70%).
Sell when:
(1) Price rise has sent div yield 1% below market av.
(2) Financial strength deteriorates.
(3) To maintain portfolio diversity
(4) When JollyRoger confidently predicts a market meltdown.

cheers,
Suntie_Idiotte