Concrete actions to take in todays valuation enviroment

Research on Safe Withdrawal Rates

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ben
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Post by ben »

No worries - I don't think you declare yourself an investment wizard!

As for your questions; the main reason I do not see any new value to "tool" is that value-focused investing is nothing new and that buying when prices are low (or selling when high) is logic for anyone who have experienced a yard sale...

This does not mean that I do not find JWR calculations interesting and will be interesting to see when PE10 again drop to 10 or below - I however fear a long wait - but have been wrong before! :D
Normal; to put on clothes bought for work, go to work in car bought to get to work needed to pay for the clothes, the car and the home left empty all day in order to afford to live in it...
JWR1945
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Post by JWR1945 »

For unclemick:
Chapter 5, 4th ed The Intelligent Investor.
My reference is the 5th edition. It has Warren Buffett's famous speech at Columbia University:The Superinvestors of Graham-and-Doddsville.

Fortunately, the speech is available on the internet and Alec has provided the link.
http://www-1.gsb.columbia.edu/valueinve ... DOC032.PDF

It was Pogo, not Peanuts.

If you look at my most recent post, you will see that we are very close in our general outlook:
Rephrased in terms of income streams: 1. pension plus hobby stocks cover the core budget and 2. SS (soon I'm 60) and IRA balanced index are lagniappe.
That is, I think in terms of a core budget supplemented with other investments. OTOH, I do not know what lagniappe means [but my spell checker accepts it as is]. Please explain.

Have fun.

John R.
hocus2004
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Post by hocus2004 »

"the main reason I do not see any new value to the "tool" is that value-focused investing is nothing new and that buying when prices are low (or selling when high) is logic for anyone who have experienced a yard sale... "

Thanks, Ben.

I like the yard sale comparison. That suggests a way of selling this concept to aspiring early retirees. Almost all aspiring early retirees agree that it is necessary to spend efficiently to achieve financial independence early in life. What this board is really all about is learning how to invest efficiently as well. It's the other side of the coin.

It's frugal investing. If we are going to work so hard to obtain the maximum value from our spending dollar, why not put a little effort into obtaining maximum value from our investing dollar as well?
JWR1945
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Post by JWR1945 »

I had previously asked unclemick about lagniappe.
If you look at my most recent post, you will see that we are very close in our general outlook:
Rephrased in terms of income streams: 1. pension plus hobby stocks cover the core budget and 2. SS (soon I'm 60) and IRA balanced index are lagniappe.
That is, I think in terms of a core budget supplemented with other investments. OTOH, I do not know what lagniappe means [but my spell checker accepts it as is]. Please explain.
Microsoft's Encarta Dictionary doesn't include this word, but two others do.

The short definition of lagniappe is a bonus.

Two longer definitions from a thicker dictionary are:
1. A small gift presented to a customer with his purchase by a store owner.
2. Informal. An extra or unexpected gift; a gratuity.
The thicker dictionary traces its roots to Louisiana French, modified from American Spanish "la+napa" and from Quechua "yapa": addition.

unclemick is talking about an unexpected gift or bonus. This now makes sense.

Have fun.

John R.
unclemick
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Post by unclemick »

Lagniappe - ??? earliest 'popular' reference by Mark Twain describing the shop keepers in New Orleans.
unclemick
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Post by unclemick »

Yup - you're right about Pogo. I can picture the cartoon in my minds eye. Peanut's is what I read now a days. ?Senior moment?

Be careful about P/E 10 - on reading Mergent's - individual value may arrive before the general market - especially if you have some - er, ahem - lagniappe money.
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