Richardcyoung.com

The Online Home of Author and Investor, Dick Young

  • Home
  • How We Are Different
  • About Us
    • Foundation Principles
    • Contributors
  • Investing
    • You’ve Read The Last Issue of Intelligence Report, Now What?
  • Your Survival Guy
  • The Great Reset
  • COVID-19
  • My Rifles
  • Dividends and Compounding
  • Your Security
  • The Swiss Way
  • Dick Young
  • Debbie Young
  • Key West
  • Paris
  • Dick’s R&B Top 100
  • Liberty & Freedom Map
  • Bank Credit & Money
  • Your Survival Guy’s Super States
  • NNT & Cholesterol
  • Work to Make Money/Invest to Save Money
  • Your Health
  • Ron Paul
  • US Treasury Yield Curve: My Favorite Investor Tool

Taking a Beating in the Stock Market, Again This Year

September 19, 2011 By Richard C. Young

You have plenty of esteemed company if once again you are taking a stock market scalping. The popular Legg Mason Capital Management Value C Fund is down a staggering 11.8% YTD. And, of course, the broad market indices are down. The S&P 500’s negative total return YTD is negative 6.3%. It has been a bummer of a year for a number of reasons, which include the limping-along economy, jobs and housing market despair, and the ugly situation both in Washington and at the Fed.

In my monthly strategy reports, I have been warning clients for many quarters. I use inference reading and anecdotal evidence to help gauge the tone in the financial markets. I combine this research process with the intuition gained in nearly 50 years of professional investing to craft armadillo-like investment portfolios. Successful investing is often more of an art than a science. The armadillo is an all-weather beast able to take on all comers. I dedicated my 1987 book to this hearty beast and, today, practice the same basic strategies outlined over two decades ago.

The benefactors of my work are regular strategy report subscribers as well as clients of our Naples- and Newport-based family investment management company. Our equities research firm provides the input for Young Research’s Retirement Compounders (RCs) model portfolio. This portfolio is the North Star for our portfolios at our management company and for monthly advice in my strategy reports.

Thirty years ago I waded through annual reports, chronicling, well after the fact, a company’s prior year performance. I haven’t relied on these historical relics for decades. You will not find one in my office. I want to know what is going to happen five or ten years in the future. I want to know about companies and industries with a sustainable advantage and with a high barrier to entry. I don’t talk to anyone on Wall Street or read books on finance and investments. I do have one book on investing on my desk, and it has been on my desk since 1963. The book is Security Analysis. You have probably heard of one of the book’s authors, Benjamin Graham. Most of what I want to know about investing can be found in this single, 778-page reference. On page 480, the authors write, “For the vast majority of common stocks the dividend record and prospects have always been the most important factor controlling investment quality and value. … In the majority of cases, the price of common stocks has been influenced more markedly by the dividend rate than by the reported earnings.” Every stock in our RCs portfolio pays a dividend. The average portfolio yield is most often more than twice the yield of the S&P 500.

Forty-eight years and my basic dividend strategy has not changed. No modifications, no adjustments, just the continuity of dividends today and dividend increases tomorrow.

Keep it simple. Keep it consistent. And anchor your investment program with dividends, as I do. Good Luck.

Warm regards,

Dick

If you’re willing to fight for Main Street America, click here to sign up for my free weekly email.

Related Posts

  • Taking a Beating in the Stock Market Again This Year: Part 2
  • World Class Stock Market Performance
  • Stock Market Beauty Contest
  • Author
  • Recent Posts
Richard C. Young
Richard C. Young
Richard C. Young is the editor of Young's World Money Forecast, and a contributing editor to both Richardcyoung.com and Youngresearch.com.
Richard C. Young
Latest posts by Richard C. Young (see all)
  • Get Well Soon Taki - March 21, 2023
  • A Cashless Society Is A Debacle for Americans - March 21, 2023
  • How about Hiring Erik Prince to Crush the Drug Cartels? - March 21, 2023

Dick Young’s Must Reads

  • Meet Me at Freddy’s June 2022
  • V4 Stands Against North African and Middle Eastern Invasion
  • YOU DESERVE FREEDOM: Your Hard Work Will Make It Happen
  • Rich States, Poor States this State is Dominant Once Again
  • DEATH SPIRAL: Crime Soars in Democrats’ #DEFUNDTHEPOLICE Cities
  • FARM AMERICA: New York City’s Finest Cheesemongers
  • “The Goal”: Strong Families, Resilient Faith, Thriving Middle Class.
  • Your Survival Guy at Fidelity and Your RMD Compliance
  • SVB – There’s Panic in the Air
  • Early Advice from Her Dad on Tipping at Charlie Trotter’s

Our Most Popular Posts

  • Pushing Back at ESG
  • Washington Is the Systemic Risk
  • Your Survival Guy’s BEST Insider’s Guide to Key West
  • Cheap Reliable Heating – a Life Saver
  • Are You Fairly Wealthy? I’m Listening
  • Biden Has Lost Control of the Northern Border Too
  • Matt Taibbi Exposes the "Censorship-Industrial Complex"
  • Who'd be Nuts Enough to Have Put Money into SVB?
  • Get Well Soon Taki
  • “Will We Have Enough to Live On Forever?”

Disclosure

RSS Youngresearch.com

  • Are You Fairly Wealthy? I’m Listening
  • Treasury Studying How to Increase Deposit Insurance
  • Your Survival Guy’s BEST Insider’s Guide to Key West
  • For Whom Is Your Portfolio Serving?
  • Who’s to Blame for Banking Vulnerability?
  • Mortgage Market Not Expected to Settle Down Soon
  • Are You Living Your Best Life?
  • Were Silicon Valley Bank’s Motivations for Taking Losses Pure?
  • Will the Black Swan Usher in Digital Dollars?
  • Major Rail Merger Gets Approval

RSS Yoursurvivalguy.com

  • Are You Fairly Wealthy? I’m Listening
  • How Long Is Your Water Supply Chain?
  • Your Survival Guy’s BEST Insider’s Guide to Key West
  • Be Wary of Those Who Wrap Themselves in Capes
  • For Whom Is Your Portfolio Serving?
  • ESG: Are Markets Ready for “A Needed Dose of Reality?”
  • Was Silicon Valley Bank a Victim of ESG?
  • Are You Living Your Best Life?
  • March RAGE Gauge: Will the Black Swan Usher in Digital Dollars?
  • Gretchen Whitmer Reviving Forced Unionization in Michigan

Who’d be Nuts Enough to Have Put Money into SVB?

Are You Fairly Wealthy? I’m Listening

Get Well Soon Taki

A Cashless Society Is A Debacle for Americans

How about Hiring Erik Prince to Crush the Drug Cartels?

Key West’s Best Burger

Copyright © 2023 | Terms & Conditions | About Us | Dick Young | Archives