Comments on: Income Portfolio – Quarterly Update 1H09

By: My Income Portfolio

My Income Portfolio — Tue, 23 Jun 2009 10:00:14 +0000

TIPGuy

Nice article.
Student of Market has made nice comment. I would like to re iterate that owning business phase comes very late in investing life cycle. Once you have enough amount of cash & you can depend upon that for rest of the life then you won’t mind investing that huge amount in some good stocks like you mentioned L&T or TCS. Also you will get chance to preach the world how you are practicing value investing using Buy & Hold

By: shikha_bhagat

shikha_bhagat — Mon, 22 Jun 2009 12:01:33 +0000

TIP guy,
thank you for the update. this is nice way to show how one can measure progress.

what is unique about this update is you measure dividned cash flow. this is something i have not heard of. I have not seen anybody measuring or focusing on dividned cash flow. almost everybody focuses on value of the holdings. Any reason why you are doing that.

Thank you.

By: Student of Market

Student of Market — Mon, 22 Jun 2009 11:35:41 +0000

To my mind, investment – long term investment – means two things:

1. Put money into something that will grow over years at an annualized rate that is a few percentages higher than the average ten year inflation rate of the country whatever that rate may be. In other words, if the ten year average inflation rate is 10%, I would like to get a return around 14-15% – This return may include dividends. ( I believe this will automatically exclude putting all the money in Fixed Deposits)

2. Earn this amount while taking ownership in businesses of the country. In other words, grow as the country grows. There are few better ways to be a owner of a company like TCS, Larsen and Toubro etc. other than possessing stocks of these companies.

Anybody who invests long term has to agree to these two above points or it does not make sense to invest.

Warm Regards, Student of Market