Greg Donaldson describes the firm's concept of Bond-Like Stocks and why they may return a better total rate of return than treasury bonds in the years to come.
Donaldson Capital Management Clients and Principals own Procter and Gamble. We would like to get your impressions on this new series of audio blogs that we are doing. Just click on comments to give us your feedback.
Thursday, August 12, 2010
Bond-Like Stocks
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3 comments:
I like the audio versions but would also prefer the option for a written transcript.
Really liked the "slides" shown along with the audio. They help emphsize the point. VTL, St Louis
Nice presentation but it really "misses" the major point.
Invest $1000 in a treasury yielding 3% and in the end you have the 1000 dollars plus 300 dollars and change
or $1300 to $1400 if you reinvest all dividends.
Proctor and Gamble on the other hand at 10 years will have returned at a minimum of 320 dollars but more accurately $480 plus the $1000 or more accurately ~$1800 dollars for a total of $2280-(please check the math) for a 63% greater return.
These numbers are not completely accurate but does support the notion og stock like bonds being the better investment except for the volatility. If you want totakl security stick your money in a mattress and starve to death in your 80's.
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