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Hi B&W,
Perhaps you misunderstood. I have 3 portions to my portfolio made up of a number of stocks each. I do not sell the winners and keep the losers, rather I do the opposite. Selling off the losers (or the ones showing the least promise) and keeping the winners (most promise). I do this in the respect of trying to keep the portions of each type of stock consistent. In other words, lately, I have been cutting back a little on my high growth portion as this portion of the market has been red hot this year. I do that by trying to pick the worst ones in that portion of my portfolio and then try to add to the portions of my portfolio that has done worse. Whether it is the dividend growers or the high dividend stocks.

My thinking is that different markets favor different types of stocks and this process tends to keep my portfolio pretty balanced over time. So bad markets (like today!) dont hit me as hard..... I believe I am a little more diversified this way and hopefully lower risk. And it doesn’t seem to hurt me much, and I am up about 23% so far this year, not quite at your level but....

At least that is the theory. I am also getting closer to retirement and so I have been slowly moving more and more money to the higher dividend category.

But back to you. I was very surprised by your statement you are buying TPL recently being that it is a very low paying dividend. I thought you bought exclusively high dividend paying stocks and ones where you thought they would continue to rise. I also recall that you looked for high tax efficiency, MLPs, and high return of capital type stocks (like HASI).

Have you changed your philosophy? Are you making so much in dividends that you are not wanting the cash flow (I hope for your sake, this is the reason!) or is there something special about this security. It is a somewhat off the beaten path stock, so that fits what I recall about you...


Thanks,
Randy, Long HASI.....
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