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No. of Recommendations: 20
I have written this once and I will write it many times.
Motley Fools DRIP column and board direction toward so called Psuedo-Drip. Or providing advise on rather costly way to purchase small amounts of stocks, is really bad.
And, in my opinion very misleading.
Stocks that provide DRIPs are stable revenue generation stocks that have very long business cycles.
First and for most they are in a business to produce a product that they can then sell and produce a profit.
They will and should always error on the side of product development and customers versus maximizing a return on investment.
You really want optimization of return on investment.
So DrIPs provide a very cheap way for the little guy to get started and establish a wealth base.
What MFool and the DRIP column are doing is diverting your attention away from DRIPPINg as an investment strategy.
Companies like JDSU. EMC, NTAP, MSFT, ORacle, RAmbus and BEAS will always be with us. And only one out of a hundred will be around 10 or 15 years from now.
Companies whose assets and capital are based on revenues and not stock appreciation should always be the foundation of wealth building.
Solid, slow consisted growth will always be the fundmentally sound investment strategy.
Buying $100 dollars of JDSU as Psudeo DRip versus Corning as a DRIP is not a sound investment strategy.
Anytime you pay money to invest when you can do it free that's not smart.
Make no mistake. Establishing a investment strategy with Psuedo-investments is costly and not sound a investing strategy.
At the least Fool should move the discussion out of the DRIP column and boards.
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