My Philosophy On Long-Term Oil Investing

Royal Dutch Shell pays out a dividend of $0.94 per quarter, or $3.76 per year. The price of the stock currently sits at $69.83 per share, an inch above the company’s fifty-two week low price of $68.29 that was reached during Friday’s trading. I find it to be a chronically underrated company, with annual returns of over 14% from 1914 through 2014 and over 11% annual returns since having globally scaled operations in 1986.

It is also a company that has served an important purpose in helping me develop and improve my overall understanding of investing, as Royal Dutch Shell had cut its dividends six times over the course of delivering 14% annual … Read the rest of this article!

The Condescension In The Financial Industry Continues To Bother Me

In order to persuade someone of something, there are two things you have to do right: you have to have the right message, and you have to deliver the message in a persuasive way such that the person on the receiving end of what you are saying inevitably thinks, “Why yes, you are like me, and people like us do end up doing things like that.”

I’ve been spending part of my day watching Youtube videos of financial managers and planners talk about the advice that they give prospective clients, and while I don’t want to single any of them out, I will share with you my general impression: even though a lot … Read the rest of this article!

Time Diversification Is Important When You Sell A Business Or Receive An Inheritance

Other than people looking to get started investing, by far the most common correspondence I receive from readers is the profile of someone who received a significant amount of money either through selling a business or receiving some kind of inheritance, and is looking for help on what to do.

Most of the conventional wisdom that you can find on the topic just by doing a quick google search is quite good—take a few months to just chill out and *think* before rushing to do anything, don’t look to make any concentrated bets (which is a slightly different way of saying that you should diversify), and so on.

The one piece of advice … Read the rest of this article!

Annuities In 401(k) Plans Are A Terrible Idea

Susan Conrad, you get a gold star. When asked to comment on the new proposal to include annuity options in a 401(k) plan, Ms. Conrad said, “All annuities are not created equal, and that concerns me. Our industry is moving towards more transparency, and the introduction of annuities as a plan option could take us in the opposite direction.” Anthony Webb, you get a gold star, too. He added, “They’re not offering an inflation-indexed product, but if you are buying a product for 25-years into the future, you are going to be concerned about inflation.”

The argument in favor including annuities in a 401(k) plan, summarized by the St. Louis Post-Dispatch in this … Read the rest of this article!

Benjamin Graham And Jeremy Siegel on IPO Investing

I do not write about IPOs often. As far as I am concerned, there is only one privately traded company in the United States that would engender “must have” status if it became traded on the stock exchange, and that would be Mars Candy (the maker of M&M’s, Snickers, Twix, 3 Musketeers, and a handful of others). Out of all the IPOs in the only past generation or so, the only worthy of truly long-term holds that could not be bought through a similar proxy would be Google, Starbucks, and Visa. It’s not something that I think about all of that often, given the strong wisdom against IPO investing given by Jeremy … Read the rest of this article!