|New Threads Only:|
|New Threads & Replies:|
Forum List » Guru News and Commentaries|
Guru News, Stock picks and commentaries
Pat Dorsey: Avoid the Rush to Safety in 'Unsafe' Places
Posted by: Dheeraj Grover (IP Logged)
Date: August 15, 2012 08:06AM
Pat Dorsey, president, Sanibel Captiva Investment Advisers, author of the value investing book "Little Book That Builds Wealth" and former director of research of Morningstar was on Bloomberg to discuss his views on long-term corporate bonds and how investors should not rush towards supposedly safe corporate bonds. He also sheds light on his investment strategy.
-- Interest rate risk associated with 30-year long term bonds from safe and well-established corporations is very high.
-- Investors will lose money by investing in these 30-year bonds long term.
-- High yield dividend, paying stocks are much safer investments as dividends will grow and will protect your investment from inflation vs. 30-year, long-term bonds which will not.
-- Buying dividend equities story is not new but story of 7-8% dividend growth is untapped
-- Best stock idea now: GE. GE Capital is fixed now and providing $3 billion in dividends to the parent company. Also, GE's dividend is expected to grow much faster, providing high total returns.
Here is the video:
Stocks Discussed: GE, KMP, T, VZ, WMB,
Disclaimers: GuruFocus.com is not operated by a broker, a dealer, or a registered investment adviser. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The gurus may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes provided by InterActive Data. Fundamental company data provided by Morningstar, updated daily.