Latest mungofitch post on the Mechanical Investing board at Shrewd’m discusses a high yield dividend strategy. Of course, his notion of high yield is different from high yield here. Tomato potahto. It’s interesting because some elements are not that dissimilar to practice here.
Ears
I admire, respect and have followed Mungo for 25 years. Have put several of his market breadth/health indicators into my toolbox.
That said, it needs to be pointed out that investing in 50 stocks, 2% each with a monthly or quarterly turnover is just not practical for most. If one picks the “top 10” or “top 5” by some other factor such as yield, earnings yield, ROE, mkt cap, that needs to be backtested like we’ve been doing on MI for lo these many years. Like he said in that post: “don’t tweak this.” So - just sayin.
This guy has been predicting doom and gloom for 20 years now.
Many followed him and went into cash and lost decades of compounding.
Forgot to put this disclaimer in my original post.
This post neither endorses or renounces mungofitch, mungofitch’s investment strategies, mungofitch’s views on life, mungofitch’s friends and relations, or mungofitch’s heirs.
Nor does it endorse or renounce ANYONE, ANYONE’s investment strategies, ANYONE’s views on life, ANYONE’s friends and relations, or ANYONE’s heirs.
Ears
Ears, are you an attorney?
Just saying, disclaimer aside, when you thought it is worth cross posting here, you viewed it as worth for others to read, a subtle endorsement.
We should embrace different views and everyview will be disliked by some. So… it is okay if you endorse it or not.
Ears, are you an attorney?
No, I flunked out of law school.
Jeesh, except for you and Champ, posting here isn’t fun anymore.
Thanks for posting this Ears.
Another “not true” from you.
When it comes to politics or Tesla, Divi is blind… 
just like mungo’s “friends, and supporters” have great respect for the guy and completely overlook utter nonsense from him. So it is understandable… if you have access to the old TMF boards you should go back and see… specifically my posts on CAPE… or GAAP profits.
Hi Ears:
I had a Realtor once trying to sell me what he described as an Ocean View home. It was a nice home. And he was right - if you climbed up on the back fence - leaned way out - and looked to your left you could, in fact, see a thin sliver of the ocean. What a deal!
I really, really tried very, very hard not to respond to Mungo’s post on his suggestion for putting together a high yield port. I really did and I mean…why set fire to your own campground…right? But…alas, there is this: You could eliminate a great deal of thisn and thatn, calculating and recalculating and repeated adjusting and readjusting ad infinitum by making a minor investment in the HDO service over on SA. Let a Dividend guy like Rita Morwa do the heavy lifting before entering the higher dividend arena yourself. Check it out - and, if it doesn’t work for you…well, just don’t do it. You avoid all the back biting and gnashing of teeth and traffic on home town Wall Street. Simply put - just buy some Pimco funds and a few baby bonds that pay much higher than Mungo’s 4.5% and spend the rest of your time biking/hiking around the world while concentrating on your Growth port. There will be nay sayers of course…but…my guess is that their saying of nay is largely a product of guttural reaction and largely based on never doing it at all.
All the Best,
The Big Dumb Hick - With High Dividend Port
Mean while, back at the ranch. at the end of the never ending and numerous portfolio contortions, Mungo comes up with an average yield of…?
I’ve encountered a couple of folks on Youtube that I like in regard to high yield, Armchair Investor and Income Architect. I really like and give dreedence to Armchair. Income Architect is a bit to nerdy for me to take seriously. Rida con tinues his thing and seems to do well at it.
Hi 5:
Thanks for mentioning Armchair - will try to check him out.
All the Best,
Hey Coach,
That must be the same Realtor that wanted to sell me a vacation home on the Cape within walking distance of the beach. Turns out he was remarkably fit.
I don’t invest anymore, so unfortunately your well-intentioned suggestions fall on deaf Ears.
Many investors think their job is to generate yield. In reality, their job is to manage risk. That was the point of Jim’s (mungofitch) post.
Best to you,
Ears
P.S., I neither endorse or reject Jim’ views or your views of investing.
Ears:
I really like this:
“P.S., I neither endorse or reject Jim’ views or your views of investing.”
I have decided to steal this and add it to all my posts substituting Big Dumb Hick’s for “Jim’s”. Will also apply the Neither/Nor rule as needed.
Now about that risk thingy. My All-Too-Lovely thinks that my job is to fund her various clubs and club cronies with enough cash to pay for their monthly meetings and hare-brained projects. We have a deal that goes something like this: Until such time as the Dividend Port winks out she can have 50 % of the cash it throws off to fund her projects.
Lastly - I mean no disrespect to Mungo - albeit it might have seemed that way.
All the Best,