Must-haves for Your Stock Market Portfolio
When youre not in a bull market for stocks, its obviously much more difficult to generate capital gains. Thats why become so important. For me, I like an equity portfolio to have a mix of holdings; some risk-capital trades and some large-caps that pay dividends. I think a portfolio should not just diversify among different industries, but also with different time horizons for investment. Ill dedicate a certain percentage of a stock market portfolio to short-term trading, medium-term holdings, and several positions that are very long-term in nature that pay dividends. No matter what kind of stock market it is, my preferred strategy is not just to diversify among assets, but to diversify among time frames.
The stock market offers up good opportunities no matter whether youre in a bull market or a bear market, but different kinds of businesses behave differently on the stock market, depending on whether its a bull or a bear. The degree to which a stock performs is directly related to the degree institutional investors are willing to be interested in the story. A company growing its earnings by eight percent per year and paying dividends is going to be much less attractive than one growing 20% per year in a bull market. But,Christian Louboutin peep dame 150mm chaussures JadeLivraison gratuite pour vous, in a bear market, investors needs change and consistency becomes king.
I want to highlight for you two businesses that I really admire. I admire them because of the wealth they have created for shareholders and the consistency with which theyve performed on the . Both of them pay a modest amount of dividends and these businesses are what you might call boring and unexciting. In a bullish stock market, Id bet most investors would ignore these companies. It would be a mistake, however,Christian Louboutin chaussures simples 85mm pompevente pas cher, considering the consistency with which they make money over time. (See .)
If you have a chance, pull up a long-term chart (20 years) on Ecolab Inc. (NYSE/ECL). This company,Christian Louboutin chaussures Lady Lynch 120mmvente pas cher, based in St. Paul,Christian Louboutin Mater Claude 85mm noir chaussures rougesvente au rabais, MN, started out selling carpet cleaning products to hotels. Now the business sells cleaning supplies,2012 Hogan Marrone Interactive Donna Sconto grande vendita, and pest control and maintenance services to the foodservice, hospitality and healthcare industries. It isnt fancy, but it makes money and the stock has been an outstanding, consistent wealth creator for years. Its up about 20-fold over the last 20 years (not including ) and its weathered every shock to the system with demonstrable strength. The stock just hit another new record high and Im surprised that Warren Buffett hasnt bought it out yet.
The other consistent wealth creator that I admire is W.W. Grainger, Inc.(NYSE/GWW). This company pays a similar amount of dividends to Ecolab (current yield about 1.3%) and has been an outstanding,hogan vendita, consistent wealth producer for many years. Based in Lake Forest, IL, W.W. Grainger is a wholesale distributor of industrial equipment such as electric motors and fasteners. Its not the kind of business that you get excited about, but that doesnt mean it hasnt made a ton of money for shareholders. On the stock market, it just hit a new all-time record high, doubling since the beginning of 2010 and quadrupling since 2004 (not including dividends).
Ecolab and W.W. Grainger are but two examples of outstanding businesses that pay dividends and have created an enormous amount of wealth on the stock market. And theyve performed consistently and with very little downside historically.
An equity portfolio, in my view,Christian Louboutin Vous Vous sortie 85mmvente au rabais, needs to have some boring,Beige Grigio Hogan Uomo Interactive, but consistent wealth creators in order to smooth out the effects of the business cycle on your holdings. You can trade the for capital gains sure,Christian Louboutin chaussures Daffodile 160mmLivraison gratuite pour vous, but, at the same time, it can also pay big-time to hold great businesses that pay . In my mind, a consistent business is just as useful as the next high-tech breakthrough.
With Profit Confidential we analyze the actions of the stock market, precious metals, interest rates, real estate and other investments so we can tell you what we believe will mean for you tomorrow,Hogan scarpe donna nuovo arrivo 2012 grigio-nero!
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