Dividends and Diary of a Hedgehog

Barton Biggs wrote columns to allow for people to help understand how he was seeing the world. For many years he was connected with Morgan Stanley helping to run its research, investment management division and the firm; later he left to manage his families money and others in a hedge fund. His columns from 2010 to 2012 were put together in the book Diary of a Hedgehog, John Wiley & Sons, 2012. Within the book is his analysis of how he saw the release of government statistics and how the stock market preformed and what it is expected to do. The book also gives pointers to remember such as large capitalization, high quality American equities with global franchises and good dividends are a fine place to be in the long run. As with all themes, there are different ways to invest in them – for example if you wish to invest in emerging markets – you can invest directly (Mr. Biggs preference) or you could do what Warren Buffet does, go indirectly knowing great global multinationals are major participants in the developing countries and two examples are Coca-Cola and McDonald’s.

Linking to dividend producing stocks, the markets will move up and down, some stocks will be in favour, some out of favour, but those that consistently make money and pay a dividend will be in the long run advantageous to you. Invariably all companies must make money, starting and staying with proven money makers allows you to concentrate on the other things in your life to make it more rewarding.

There are more questions than answers, till the next time – to raising questions.

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