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No. of Recommendations: 14
The Boring Port must be the Dead Port right now, because I'm sure it's rolling over in it's grave now that it bought CSCO. When Greg Markus started the Boring Portfolio, here's how he explained his methodology in the first Boring Port article :

"invest in stuff you know about, research the company's sales and earnings history and prospects, steer clear of no-earnings hype stocks, estimate what a fair multiple for the stock should be and don't pay too dear a price, sell if the rationale that motivated the buy changes or if the stock appreciates to fair value"

I'm not seeing a lot of this in the "Dead Port". I'm interested in reading Bill's reasoning for this purchase, but I'm highly skeptical of whether he's carrying the Boring torch. It seems to me like the Dead Port is more accurately following Bill's personal moves than the Boring philosophy for the following reasons

a) The buy reports are coming before explanations of why the stock was bought or discussion of price. The buys seem to be happening very quickly, as if these had to be real-time transactions. In a trading port, that's a great thing because it shows the portkeeper is being honest, however the thing I loved about the Boring Portfolio was that it was one you could attempt to follow in a or ShareBuilder account, where there are limited trading windows per day or per weekly period.
b) The amount of used CSCO hardware available at the moment is astounding, and will have a drastic effect on CSCO's bottom line in the future. Simply do a search on EBay or Yahoo! auctions for networking equipment. I don't have the address handy, but there's a even a site marketing only old routers.
c) The write-off of inventory is a sneaky, if not questionable move
d) Dilutive effects of takeovers
e) CSCO has no dividend yield, which was a factor in Boring Portfolio purchases in the past.

This is some harsh criticism, so I want to temper it a bit. Bill, I'm not trying to knock your Portfolio. I don't have any opinions against any particular approach - I've seen good chart readers make a lot of money, good value investors make a lot of money, contrarians and hybrid approach investors too.

I do want to make the point that you seem to have tried to pick up where the Boring Portfolio left off and you've diverged quite a bit. I know you said that you're not strictly a value investor, but the CSCO move seems almost antithetical to value investing.

I enjoyed your analysis of AREM and look forward to reading your reasoning for a CSCO buy, even if I am tremendously skeptical.
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