Housekeeping Friday November 15, 2008Posted by shaferfinancial in Uncategorized.
Tags: BRKB, cheap stocks, dividend yield, HCN, sunset tribe, Warren Buffett
Just a few things this Friday to tell my readers.
1st, I have added to my positions in both BRKB and HCN. Just couldn’t resist buying some more Berkshire at bargain basement pricing. As you know I am a real believer in Warren Buffett’s abilities. He has invested close to $30B in the last few months. Most in deals only he can manage to get. I think this will pay off handsomely in a few years. As for HCN, a REIT, I picked up a few more shares at at price yesterday morning that puts it current dividend yield at 7.6%! I have been buying HCN for quite a few years now. This was the most I had paid for shares, but it was at its lowest point since early in the year. They have paid dividends out 150 straight quarters, which has risen consistently. My current dividend yield, based on my cost of purchasing, is 12%. Since I reinvest dividends, this means that that 12% will be compounding every quarter going forward. If, the dividend continues to rise, my dividend yield will rise with it. So even if the dividends stay the same for 10 years, my investment will be worth over 3 times what it is now, just from dividends. If shares values increase then the total return can rival Berkshire’s. If the shares’ value goes down, then I just accept the dividends as the rate of return. Its a heads I win, tails I win situation for me now.
2nd, I am taking my family to the beach for a week. This is an annual event for us. What this means for the reader is that my postings over the next week will be limited. For me, it is a time to relax, re-join the sunset tribe, unplug for a few days from the world.
Finally, I am in conversation with a web site designer to put up a new web site for my business. I have learned much the last year. Working with a real master in the art of the internet will allow me to improve my business. I will let the reader know as it goes live.
PS My book is completed and will be coming out simultaneously with the new website!