"They don't get paid on returns; they charge a fee when a worker puts money into his account. It is 20% of the donation but that also includes disability insurance, and there is no annual maintanence fee. PVD will get a cut once the money is taken out, so overall returns do matter but that won't factor in for decades."
Ah, so thats where the investment money eventually comes into the picture.
...And today it continues, again smashing thru the 52 wk high on no visible news here in the States. I have tried google translating PVD's website but it really doesn't work. Seems very hard to get info on Chile. I have made great money on this stock, it continues to have great fundamentals from the little data that I can obtain, but I'm starting to wonder whether I should really be in something (as good as this appears to be) when I can't seem to get current information about it.
Let your winners run. PVD is on a roll. Copper prices are through the roof. The Chilean economy is smoking, and the dollar is falling. Chile has a budget surplus and commodity based economy, which is exactly where you want to be. The company itself is not performing that great in the short term, but this is a stock you own for 20+ years.
I was in Canada a few weeeks ago, and the dollar has fallen 60% against the Canadian dollar. So when people talk of this all time high on the Dow and S&P, I laugh. The market isn't up; the dollar is down. If you look at buying the Dow with oil or most foreign currencies, the Dow is nowhere near a high.
The good news is that there are still a few countries where the dollar still goes a long ways, and that is where the bargains (and only bargains for U.S. investors are). PVD still has a ways to go. Remember we aren't just talking about a bet on PVD but a bet on a falling dollar and a growing Chilean economy and stronger Chilean currency.
The pros say sell on good news and buy on bad. I find often the best buys are no news. I buy high dividend(qualified) paying stocks on unexplained dips, that will be up in the long run and try and hold for LTCG. PVD fits perfectly so I don't worry about news too much. If there's a dip, I buy first and ask questions later. Usually the dip on an ADR is related to the US market, and have nothing to do with Chile or PVD. I received my QDIV from Schwab on 06/07