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Tag Archives: intc
Today I wanted to touch on another common behavioral issue that most investors fall prey to, anchoring. I’ve commented previously on the behavior gap, how behavioral issues lead to investor under performance and specifically how more information often leads to worse investment performance. Anchoring is another behavioral pitfall for investors. I’ll describe what it is first and then show a common way it affects income investors. Anchoring describes the effect of irrelevant numbers in people’s behavior. It turns out that irrelevant numbers impact our decision making in dramatic ways. James Montier in this piece on behavioral issues uses the following … Continue reading
I’m finally back from my exile in the woods. I would recommend the Gila National Forest in Southwestern New Mexico to anyone who wants a bit of peace and quiet. Now back to the business of income investing. There has been a lot going on in income investor land recently. Here are some of the items that caught my eye and what I think of them. Intel Q1 2011 earnings. Intel blew away earnings estimates in Q1. The corporate. server, and cloud computing markets are just going gangbusters, offsetting weak developed market PC demand. Although emerging market PC is doing … Continue reading
In my first post on the magic dividend formula I discussed how to estimate forward returns using the formula. The formula only requires the estimation of one unknown variable which makes it very easy to use. Today I want to discuss a different form of the exact same formula and a couple of ways to use it in your investing. The magic dividend formula can be re-written into a form that solves for the price of the stock. Here it is; P = Annual Dividend / (Required rate of return – Dividend growth rate) This the exact same formula as … Continue reading
Tech stocks, especially some of the big cap names, are transitioning to becoming great dividend stocks, in particular great dividend growth stocks. I’ve written about this rising trend previously (here). Also, I wrote about MSFT in particular, here, when it was at $24, although I didn’t think it was cheap enough (it now trades at $28). And even two tech stocks, Intel and MSFT, made my Christmas Wish List (here). Now, its time to write about Intel (INTC) some more. Intel reported Q4 2010 earnings last week and in short they were outstanding. 2010 will go down as Intel’s best … Continue reading