william the wie
Gold Member
- Nov 18, 2009
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While I am not going to discuss my own current strategy in detail I will discuss my strategy of 1992-2007.
At that time there were low or no fees to get in or out of DRIPs (Dividend ReInvestment Plans)
I got into plans where the dividend yield was greater then 4%, a 5% discount to market on reinvested dividends and 5% discount on additional cash sent to the treasury of the company this led to .29+% annual returns without capital gains or dividend increases. This strategy became too well known and fees for getting in and out started to climb rapidly.
So I looked over the writings of Graham, Templeton, Buffett and Lynch. My conclusion is that the market is not efficiency per se but is subject to diseconomies of scale, the urge to blab.and the over use of structural and financial leverage.
What I do not understand is why these errors persist. Any theories why?
At that time there were low or no fees to get in or out of DRIPs (Dividend ReInvestment Plans)
I got into plans where the dividend yield was greater then 4%, a 5% discount to market on reinvested dividends and 5% discount on additional cash sent to the treasury of the company this led to .29+% annual returns without capital gains or dividend increases. This strategy became too well known and fees for getting in and out started to climb rapidly.
So I looked over the writings of Graham, Templeton, Buffett and Lynch. My conclusion is that the market is not efficiency per se but is subject to diseconomies of scale, the urge to blab.and the over use of structural and financial leverage.
What I do not understand is why these errors persist. Any theories why?
