# Why boring, stodgy stocks are an investor’s best friend



## fatcat (Nov 11, 2009)

great article in the globe: http://www.theglobeandmail.com/glob...-are-an-investors-best-friend/article1972155/

i think it is great because it articulates my own belief that investing in the market is perilously close to gambling much of the time ..

i.e. investors are irrationally driven to seek out stocks which will deliver spectacular, high payoffs when research shows that low-volatility "boring" stocks will perform much better over time

i know that others disagree ..

it's a short read and worth the time


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## KaeJS (Sep 28, 2010)

Good article. I like the example given with the $5 and the lottery.

I agree, but I disagree to a point.

Certain trends in the marketplace can allow an investor to take advantage.

ie:

Uranium a few months ago. Silver as of late. Stocks like LuLuLemon...

Trends = Your Friend

So long as you realize you can never get in at the bottom, and never get out at the top.


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## dubmac (Jan 9, 2011)

great article - I agree that buying & holding good boring stocks is a good stratgey, but what other boring stocks are there out there other than utilities? Banks are too expensive right now - any ideas on good prospects among boring stocks?


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## gibor365 (Apr 1, 2011)

dubmac said:


> great article - I agree that buying & holding good boring stocks is a good stratgey, but what other boring stocks are there out there other than utilities? Banks are too expensive right now - any ideas on good prospects among boring stocks?


Telecoms! and not only North American ones... just do research. I bought CEL Cellcom Israel couple of month ago, gained about 8% and 11% dividends.

Another good buys - Tobacco and REIT


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## Toronto.gal (Jan 8, 2010)

gibor said:


> Telecoms! and not only North American ones... just do research. I bought CEL Cellcom Israel couple of month ago, gained about 8% and 11% dividends.


Welcome to the forum! 

CEL is on my watch-list at the moment.

I too am into Israeli hi-tech, biotech & pharmaceutical stocks given their expertise/leadership in the computer, information & medicine sectors. The exceptional growth rate they have experienced in those industries is quite impressive as well & I have done well on all, particularly with MLNX [though it pays no dividends]. 

I even have done better with TEVA than with JNJ [still in the red with the latter since I bought in late 09 for $60+].


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## Toronto.gal (Jan 8, 2010)

fatcat said:


> great article in the globe: http://www.theglobeandmail.com/glob...-are-an-investors-best-friend/article1972155/
> 
> i know that others disagree ..


I don't disagree at all; it's a very sensible, common-sense article.

Having said that, for many knowledgeable & interested investors, being a little aggressive with a portion of their portfolio does not necessarily mean 'predicting which stocks will soar to the moon' as that can surely end in disaster.


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## Betzy (Feb 7, 2011)

dubmac said:


> great article - I agree that buying & holding good boring stocks is a good stratgey, but what other boring stocks are there out there other than utilities? Banks are too expensive right now - any ideas on good prospects among boring stocks?


Yes I tend to agree banks are high, but...what if this is the new 52 week low?
It's really hard to predict the future in any dimension, so I am starting as the article mentioned to believe in the Bellguy approach. Buy hold and prosper.

I will always though enjoy the possibility of buying lowish and selling hiish


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## fatcat (Nov 11, 2009)

> Yes I tend to agree banks are high, but...what if this is the new 52 week low?
> It's really hard to predict the future in any dimension, so I am starting as the article mentioned to believe in the Bellguy approach. Buy hold and prosper.
> 
> I will always though enjoy the possibility of buying lowish and selling hiish


 i liked the way the article touched on the similarity to gambling that investing is for many of us ..
even conservative buy and hold investors (of which i am one) are often (always ?) tempted to "pick a winner" ... 
i like the idea expounded in the permanent portfolio of setting aside a certain amount of "mad money" to use for high-risk plays ..


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## gibor365 (Apr 1, 2011)

Toronto.gal said:


> Welcome to the forum!
> 
> CEL is on my watch-list at the moment.
> 
> ...


Agreed! I lived in Israel for 10 years and more or less familiar with some companies. TEVA should be good...watching it. 
Same story with JNJ, bought it about month and half ago for $60.62 - still in red, ABT is much better - gained 8% in a month (however it will be less as US$ falling and falling). 
With CEL I also have gain about 8% in 2 month and end of the month very nice dividends


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## gibor365 (Apr 1, 2011)

fatcat said:


> i liked the way the article touched on the similarity to gambling that investing is for many of us ..
> ..


Because market it's similar to casino.... roulette : black = bulls, red = bears 
Rich guys in market and casino always have advantage: better rules in blackjack, after trading and pretrading in the market.
Technical analysis = cards counting in blackjack (both trying to reduce house advantage) and so on


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## hboy43 (May 10, 2009)

KaeJS said:


> Good article. I like the example given with the $5 and the lottery.


This is known as "Expected Value", one of the simple yet highly useful lessons of an engineering education, along with tidbits like triangles are strong and the notion of Finite State Machines.

Long after whatever weak understanding I had of things like partial differential equations has disappeared into the black hole that is my brain, the simple stuff has paid off in spades.

hboy43


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