DTBoojum

John Q Smith

DTBoojum’s Activity

Yesterday

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DTBoojum replied to the Berkshire Hathaway board. 1:31 PM

Re: Bill Gates about IBM

If you're trying to evaluate the financial situation of an individual, do you care about how much he spends, or how much he earns? Indeed, if his spending growth outpaces his earnings, that is cause

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...paying dividends
[more]

Thu Apr 30

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DTBoojum replied to the Berkshire Hathaway board. 8:00 PM

Re: OT: Stock Mkt returns site

Dividends don't seem to be included. They are not mentioned, nor is there any 'total return' language. And if you check for the S&P 500 index last year, you get:

Dec. 31, 2014 close: 1848.36
Dec. 31, 2015 close: 2058.90

So [more]

Wed Apr 29

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Boards Post

DTBoojum replied to the Apple board. 5:05 PM

Re: Buyback vs. Dividend

For every year that the excess cash sits over there, it's earning less than 1%. And unless they get a complete amnesty (granted, maybe, by Santa Claus), they're still going to pay some portion of that to the gov anyway.


Well, [more]

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DTBoojum replied to the Apple board. 11:04 AM

Re: Buyback vs. Dividend

On the other hand, if they just accept reality and pay the tax now, then they can start using that money now...or better yet, two years ago. Look how cheap the stock was in 2013. The only legitimate reason to have not been buying the shares more [more]

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DTBoojum replied to the Apple board. 8:51 AM

Re: Buyback vs. Dividend


Smart CEO's don't think in generalities like "buybacks are good" or "dividends are risky", or worst of all "growth is good". They understand that the basically have three uses for free cash flow: 1) invest the
[more]

Mon Apr 27

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DTBoojum replied to the Deranged Monkey Criticism board. 4:38 PM

Re: My Theme-based Motley Investment Philosophy

...there are posters like, say, gocanucks whose fascination/fetish with macro-bloviators like Hussmann and Grantham suggests an investment approach heavily influenced by top-down thinking. I haven't read a post by him recently, though, [more]

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DTBoojum replied to the Berkshire Hathaway board. 11:13 AM

Re: buying brkb puts

Could someone (mungofitch?) please take the time to explain buying brkb puts ie both the rationale and the tecqnique etc.


Owning shares is functionally identical to owning calls and being short puts at a given strike price, with [more]

Sat Apr 25

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DTBoojum replied to the Berkshire Hathaway board. 9:06 AM

Re: OT-What's REALLY important

Didn't God make the earthquake? How does he get credit for the fact that he didn't kill someone with the earthquake he made?

But the relief, I can understand. Nothing like an earthquake for showing how fragile life is.

Regards, DTB

Fri Apr 24

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Boards Post

DTBoojum replied to the Berkshire Hathaway board. 5:34 PM

Re: ibm beats...but not impressive!?

IBM's earnings have NOT stayed flat, they have gone down; only EPS has gone up, and that is because of the repurchases.
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That's the popular narrative, but it's not really right.
EPS has risen in the last decade more because
[more]

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DTBoojum replied to the Berkshire Hathaway board. 3:45 PM

Re: ibm beats...but not impressive!?

What one can't do is think he'll benefit from all three in full, simultaneously. I've not seen anyone come straight out and say it that way, but that's often implicit in analyses of potential gains. There's often some vague double and triple [more]

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DTBoojum replied to the Canada (General) board. 8:58 AM

Re: Mortgage Market

Purely out of curiosity what happens to an RESP if the kid doesn't go to university?



There are essentially 3 parts to a RESP: your contributions, the 20% govt grant on the first 2.5k per child per annum, and income and [more]

Wed Apr 22

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DTBoojum replied to the Berkshire Hathaway board. 2:01 PM

Re: Folks needing dividends...


The God said to his wife, "put 90% in S&P, 10% in cash, to deploy when the price is right." I had exactly the same concern. Apparently, God expects everyone to just "know", like He does. Also, this is not market timing
[more]

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DTBoojum replied to the Berkshire Hathaway board. 11:44 AM

Re: ibm beats...but not impressive!?

Consider that the best computers, from a design standpoint, were the Burroughs 5500 and up machines. You may never have heard of them.

Actually, my first job was as a computer programmer with Air Canada, who had a Burroughs mainframe [more]

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DTBoojum replied to the Berkshire Hathaway board. 11:27 AM

Re: Folks needing dividends...

I'm confused because at a few points you have said things like My suggestion is to always hold 3 years's worth of cash which, if the plain tex means anything, means you never spend it down and even in 2008 you would have continued to raise cash by [more]

Tue Apr 21

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DTBoojum replied to the Berkshire Hathaway board. 6:10 PM

Re: ibm beats...but not impressive!?

The "I" in IBM does stand for International, after all.
But this tends to be cyclical...some years the dollar falls and it's a disproportionate boost.
I see no big reason to think either situation will happen much more often than [more]

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DTBoojum replied to the Berkshire Hathaway board. 2:47 PM

Re: Folks needing dividends...

do you decide when to spend some of the 150k, which years it is OK to hold LESS than 3 years cash, because these are the years you are holding it for?


My suggestion is to always hold 3 years's worth of cash or at least enough [more]

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DTBoojum replied to the Berkshire Hathaway board. 11:27 AM

Re: Folks needing dividends...

Maybe if you have a relatively predictable cash flow from dividends you do not need to carry quite so much non-returning cash in order to be prudent? Maybe a portfolio of high-flying non-dividend payers combined with a boat-anchor of cash is [more]

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DTBoojum replied to the Berkshire Hathaway board. 8:32 AM

Re: Folks needing dividends...

The analysis' intent was to highlight that your suggestion would only make sense for high net worth individuals with large sums in Berkshire stock.

Well, ok. But it is only high net worth individuals who can live on the income from [more]

Mon Apr 20

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DTBoojum replied to the Berkshire Hathaway board. 6:16 PM

Re: Folks needing dividends...

For example, if your living expenses were $50k and you had $150k's worth of Berkshire stock right there that's the end of the road for your suggestion (sell three years' of your cash needs). For this strategy to begin to make sense a person would [more]

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DTBoojum replied to the Berkshire Hathaway board. 4:55 PM

Re: Folks needing dividends...

Although I appreciate your logic, when theory meets the road reality wins out and scoffs at the conceit that it's an easy task to "make your own dividends" and prosper. Picture an investor that has most of his net worth in Berkshire [more]

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Big gold star, 5000 posts Old School Fool
Board Posts 6822
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