When you call the office of Richard C. Young & Co., Ltd. during business hours, what you’ll hear first is the voice of a real human being working at an American small business that values its clients. You won’t hear a recorded phone tree directing you to a no man’s land of extensions and recordings. You won’t be answered by someone in a far-off place. Whoever answers the phone will pick up in either of our Naples, Florida, or Newport, Rhode Island offices. The personal touch you get from the folks you’ll talk to is part of what has earned Richard C. Young & Co., Ltd. a ranking in the … [Read more...]
Do Governments Cause Recessions On Purpose?
That’s a question I put to readers back in 1988, and which is now relevant to today’s economy. The Federal Reserve is rapidly raising rates, and that is good news for savers who want to invest in bonds with decent interest rates, but the implications for the greater economy are also noteworthy. Here’s what I wrote in response to that question then: Do Governments Cause Recessions On Purpose? A recession is a prospect in the second half of 1989 because smart presidents realize that it’s tough to get re-elected if the public is dealt a recession before a presidential election year. It’s wise … [Read more...]
PRICES SOAR: Diesel Shortage Could Cripple America’s Economy
Prices for diesel fuel are soaring, and shortages of the critical transportation fuel could leave economies, including America's, in shambles. At MarketWatch, Dan Molinski reports on the fears of a shortage of diesel, writing: One of the U.S.'s largest truck stops, Love's, said Wednesday it is closely watching its diesel fuel supplies in the Northeast amid growing concerns of industry-wide shortages, but said it has no plans to limit purchases. "Love's is monitoring the fluid situation on the East Coast, we have experienced minimal outages during low traffic hours," Oklahoma-based Love's … [Read more...]
Young’s Retirement Compounders Clearly Dominate!
Two decades ago, I developed the Retirement Compounders (RCs) as a portfolio to hold through thick and thin. Concentration is on dividends and on compound interest. Expectations are justifiably modest. The Prudent Man Rule overrides all. This year, 2022, has caught most investors unprepared. The results have been pretty horrifying. Here is what I mean: The S&P 500 Total Return: -12.0% YTD. The NASDAQ: -20.0% YTD. By contrast the RC’S have held steady .The story line here, as it always is, Dividends. The Retirement Compounders (dividends/compounding-based): … [Read more...]
The Magic of Compound Interest
Back in 1964, I began a lifelong mission as a disciple of compound interest investing. In those earliest days, home base was Clayton Securities at 147 Milk St. in Boston’s financial district. By 1971 I had gotten into institutional trading and research with Model, Roland & Co. on Federal Street. My first accounts were Fidelity Investments and Wellington Management. Today, over 50 years have somehow flown by, and I am still doing business, a whole lot of it, daily with Fidelity (my family investment firm’s custodian) and Wellington (my own account’s largest positions). Wellington, … [Read more...]
You Won’t Believe How Much My Favorite Investing Book Costs
An interesting article came across my desk late last year. It was from Abe Books, an online used book retailer that sources books from shops across the country. The article was a list of the most expensive books sold by Abe Books up to that point in 2021. There were many fine old books on the list, but one immediately caught my attention—a 1934 first edition of Graham and Dodd’s Security Analysis. The description of the book from Abe Books read: The Bible for stock market investors and the most important finance book of the 20th century. A 1934 first edition, first printing. Graham … [Read more...]
When Bigger Is Better
Originally posted October 22, 2021. Supply chain disruptions and rising raw materials costs are eating into profitability and resulting in shortages of products for many firms. Procter and Gamble is not immune to rising prices and supply chain disruptions, but strong brand value and impressive scale have enabled the company to navigate the environment better than some. Price hikes are being passed onto consumers and P&G is finding a way to keep its products in stock by leveraging its scale. Sharon Terlep writes in The Wall Street Journal: Procter & Gamble Co. said that it expects … [Read more...]
SOLD OUT: Inflation, Supply Issues Limit Customer Options
Companies faced with limited supplies of raw materials and rising costs of goods are narrowing down the models of products they make to only the most profitable. That usually means that they are building the higher-end, pricier models in their product portfolios, leaving families with lower earnings unable to find cheaper alternatives. The Wall Street Journal reports: Anthony Coughlin’s appliance shop has little trouble filling orders for high-tech washing machines or designer ovens. More difficult: satisfying customers on the hunt for bare-bones, low-budget machines. “There was a day when … [Read more...]
A Case Study in Dividend Success
At Young Research, when we look for dividend stocks for the Retirement Compounders, we favor companies with strong balance sheets, stable businesses, a healthy dividend yield, and a history of increasing dividends. What does that look like in practical terms? While the ideal company financial position for the RCs can vary by industry and sector, Procter & Gamble serves as a nice case study in dividend success. A Strong Balance Sheet We look for companies with strong balance sheets because financial strength provides flexibility during tumultuous times in the business cycle. Procter … [Read more...]
Gold’s True Story
Back in 1971, I had just started in the institutional research and trading business on Federal St. in Boston. Our firm traded and researched gold shares. I would in fact shortly be on the way to London to begin research on a lengthy gold study. This presentation by Claudio Grass published on LewRockwell.com is pretty much as I remember events, and is a great summary of the facts and events of that time. He writes (abridged): This year marked the 50th anniversary of President Nixon’s decision to unilaterally close the “gold window”. The impact of this move can hardly be overstated. It … [Read more...]
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