Over the past couple of weeks, I have spent most of my time focusing on the interplay between valuation and excellent companies, often leaning in the direction of selling companies that are currently overvalued by a moderate to substantial degree. While I stand by my point, there is another element of the decision-making process that I would like to highlight: if you do decide to hold onto your overvalued blue-chip stock, you should still do quite well if you have a 10+ year time horizon.
After all, even though Warren Buffett decided to have Berkshire Hathaway (BRK.B) hold on to Coca-Cola (KO) stock through periods of severe overvaluation in the late 1990s, he still managed to turn his $1.3 billion investment in the soda giant (shares he accumulated from the late 1980s through early 1990s) into just shy of $15 billion today (and that is without reinvesting the dividends along the way). In hindsight, Coca-Cola traded at 30x earnings in 2002, and the company has still managed to deliver total returns of 7.39% since that time.
Source: Seeking Alpha
Related Articles:
- Who is Ben Grossbaum and Why Should We Listen to Him?
- 9 High-Yielding Mega-Cap Stocks
- Best Stocks for 2013
- Dividend Investors Should Focus On Stocks, Not The Market
- The Secret Ingredient of Dividend Growth Stocks
Holding Dividend Stocks Is Not A Mistake
Posted by D4L | Monday, March 25, 2013 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
Dividend Growth Stocks News
~
Popular Posts Last 30 Days
-
If you're worried about inflation rearing its ugly head next year, you should probably worry about more likely catastrophes, such as bei...
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
We screened our 24/7 Wall St. dividend equity research database and found 5 stocks that combined can generate over $3,000 of annual passive ...
-
The stock market has been on an upward path of late, with some of the most prominent stocks hitting astronomical highs. The dividend yield o...
-
Dividend growth stocks can be incredibly attractive investments if you crave recurring income. As these types of stocks raise their dividend...
-
Dividends can be a tremendously powerful part of your investing strategy. Not only can they give you a continuing source of cash to reinvest...
-
The most dependable dividend stocks typically have a long track record of sustaining payouts through different market cycles. Companies with...
-
In my opinion, there are three criteria investors should consider when evaluating a particular stock for their portfolio. The first is histo...
-
In this article, we discuss 5 best March dividend stocks to buy. If you want to read our detailed analysis of dividend capture strategy and ...
-
As the broader stock rally broadens to some of the more “boring” corners of the market, it’s the higher-yielding dividend plays that could s...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.