way with company buying shares right aROUND THESE LEVELS. Probably will raise dividend again shortly.Almost 14% annual return since IPO. Conservative and excellent mgmt. Guidsance for 05 is conservative and excellent AND trading at 9x 05. Hard to beat!
respected) & I disagreed on Index Funds as an investment vehicle. The fact is that these low cost funds usually outperform the managed funds over five years. Take a look at Vanguard's Total Stock Fund. On any mutual fund investments look for sales costs & exit fees along with the annual management fees. These really add up over time. All the Vanguard Funds both managed & Index are low cost operations. I've been a devotee of John Bogle, the founder of Vanguard, for years.
Thanks. I'm planning to live another 20+ years and don't wish to run out of $. Would like to travel a bit more in next few years before I get too physically creaky & mentally cranky. Also want to be able to pretty much fund grandchildren's education. Won't happen on passbook savings returns.
look at only short term bond funds as a personal investment vehicle. You can't get hurt too bad as interest rates rise. You can get hammered in a long term fund. (Individuals are not P & C companies).
this board who has come up with a "Copuntry" to my theory whatever that is. This isn't a theory it is an explanation. P & C business cycles occur over time and day traders can't benefit.
Thank you both for your input. It does help be see a bigger picture. I also set my computer this morning and listened to NLY's conference call with analysts. They talked a lot about yields, curves, interest rates, bonds etc. I do know that when I was employee that my "general investments," a blend of stocks and bonds, was not as volatile as my pure equity fund. I've never owned a bond or bond fund except thru my 401K or my roll over. Trying to figure out how to grow my personal assets with safety as well as figure out how bond ownership affects corporation's bottom line.
You've both been helpful & I thank you.
investment community thinks that the P & C companies have entered the excess capital portion of the P & C cycle which means rate cutting to meet competition and the revenue projections. This they feel will ultimately result in lower earnings. Thus, when SAFC & ALL report very high earnings their stock goes down.
the funds allocated to loss reserves invested in bonds. The bonds fluctuate in value but the P & C companies usually plan to hold until maturity so the fluctuation doesn't make much difference. You are correct when interest rates go up the value of bonds go down. This can make an impact on book value but not the ability to pay claims. When the bonds mature or are called the funds are reinvested in new issues that reflect current rates. This, in theory, evens things out.