Of great investments - perspective

Just some quick perspective n great investments.

I was operated on last week by a da Vinci surgical robot. Turns out that my surgeon was one of the pioneering surgeons who used the machine through clinical trials prior to the FDA giving it approval. That was way back in 2002 or so.

I believe the Fool began recommending shares a year or two later. Folk can chime in there.

Shares of ISRG were never cheap, never, not even once, except perhaps once, but no time to go into it now.

Point being, that is what a great investment takes, and that is time, and dedication, and devotion to the business, and ignoring all the “drama” as so much drama surrounded ISRG and much of it still does.

Cynicism of course, as n one can predict these things it will be said, and even AOL had its nadir. True, true, but the point being is that when you find such a rare company, toss out the drama, filter the noise, and move on with young ur life, being great at what it is you do, always adding each month to your port and let the rest of the world rant and rave and panic.

Our purpose here and now is to find investments like this. Something I enjoy. At least for me, one element needed is to understand what we are looking for and why. ISRG exemplifies this.

I will leave more analytical talk to future posts, but her people is one example we can wrap up to show the true power of CAP and TAM and focus, persistence, and tossing out the 95% of stuff, the “drama” that not only does not matter but that is hazardous to your wealth.

I wonder Howe many shares my surgeon bought or received and if he held them or listened to his financial and tax advisors and diversified and sold. I hope he was too busy and just kept being brilliant at his life and never sold a share.

Tinker

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Cynicism of course, as n one can predict these things it will be said, and even AOL had its nadir. True, true, but the point being is that when you find such a rare company, toss out the drama, filter the noise, and move on with young ur life, being great at what it is you do, always adding each month to your port and let the rest of the world rant and rave and panic.

The secret IMHO is seeking out something that is different and more important something that is overlooked by many seeking the same thing because it is different and many people need the comfort of others to shore up their own backbone. traveling on the back roads seeking value allows you to sometimes be ahead of the mob that comes later.

The problem sometimes is, it can be a lonely road and you can’t be sure you are right, until you are. That’s one of the reasons I require my few selections to be paying me a dividend/distribution as I am growing my position along the way.

I started buying Hannon Armstrong (HASI) a little over 2 years ago and while it grows, it is paying me a distribution that has been growing 10% per year while being mostly tax deferred. This is basically a “Green Energy Saving” company. The company has been in business profitably for 35 years and public for the past four years. The current market cap is 999M and when I started buying it was about 500M

Whether HASI will be a great one or not, we will find out down the road in a few years. meanwhile the growing tax deferred dividend being dripped into additional shares every 3 months will permit HASI to buy me a bunch of free shares each quarter while I watch and wait.

Waiting is the key word in my business
b&w

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Hi b&w.

Did you see this Seeking Alpha article by (Forbes REIT analyst) Brad Thomas on HASI?

https://seekingalpha.com/article/4058029-ignore-noise-reit-h…

Thanks and best wishes,
TMFDatabaseBob
See my holdings here: http://my.fool.com/profile/TMFDatabasebob/info.aspx
Peace on Earth

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Hi Bob:

thanks for posting Brad Thomas’ current SA article. I had seen it a few days ago

I came across his original article about HASI on Feb 16 2015 which was the day after he published it and was instrumental to my originally buying HASI and that plus other DD has led me to have built HASI up to a 19+% holding in my portfolio

HASI has been increasing their distribution about 10% per year. And the distributions have been mostly or all tax deferred (90% in 2014-77% in 2015 and 100% in 2016)

https://seekingalpha.com/article/2914856-forget-beaten-up-ut…

b&w

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Thanks, b&w, for the link to the original SA HASI article and additionally for the tax deferred percentages. I think I want to kick the tires on this one…

Thanks and best wishes,
TMFDatabaseBob (no position in companies mentioned)
See my holdings here: http://my.fool.com/profile/TMFDatabasebob/info.aspx
Peace on Earth

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You are certainly right Tinker but the corollary, the real point is the ability to define very specifically a)how to ‘find such a rare company’, and b) how to establish it is cheap.

I disagree that ISRG shares were ‘never cheap, never, not even once…’. It depended what ratios you chose to use (for high growth companies they are best self-invented). Yes they were cheap and that was why the company used to appear in my screening results.

Nor, I think, do you want to completely filter out the noise. The noise may contain the strains of music worth hearing. That it is common to react to noise not worth hearing does not mean there may be birdsong among the grinding of market machinery, whether lark or raven.

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Thinking more on this over the last few minutes though, I realise how much I am with you. You have to listen to the market noise but nearly always you have to be able to resist reacting. I very freely admit that has historically been a big problem for me. I have turned over the high-quality holdings in my portfolio far too much; the welcome guest is later ejected… but it is not long before it appears he is welcome again. You are so right.

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Hi Strelna:

I have turned over the high-quality holdings in my portfolio far too much;

I consider everything in my portfolio as “High Quality Holdings” The reason I do, is because they are all doing what I bought them for. To go up in market value and more important to pay me a growing dividend/distribution so I can pay my bills. If they didn’t work for me–They would be gone and replaced

I am retired and after working for money all my life—The money has to work for me now or I don’t eat.

b&w

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To me perhaps the most interesting thing about ISRG was the non stop bad mouthing by all the professors the old line surgeons . Worthless, what they were really concerned about, consciously or unconsciously, was the devaluation of all their hard earned expertise in older methodology. DOS vs Windows type of thing.

The same thing is noticeable today when it comes to electric cars.
Maybe the CPU vs GPU battle too??

My biggest investment mistakes have been selling great companies too soon because of news that was temporary in nature. As Tinker says shares of great companies may get less expensive off and on but they never get"cheap" .Perhaps the best time to buy them is in a Bear Market, when the falling tide lowers all the ships. But the conundrum is that if you are fully invested you don’t have the cash to buy then. The advantage of being young with a steady job and positive cash flow.

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To me perhaps the most interesting thing about ISRG was the non stop bad mouthing by all the professors the old line surgeons .

Except, of course, they were at least partly right. da Vinci is a big plus over old style cutting open the body, but seems marginal compared to “conventional” laproscopic. It has been claimed that it makes it easier for a less talented surgeon to do a top flight job, but I haven’t seen any strong evidence of that.

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