Re: High Yield Bonds & Large Moat Dividend Growers
Posted: Sun Oct 14, 2012 1:12 pm
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[/align]Thank you! Thank you! Thank you!stone wrote: Clive, what strikes me about minimal dividend stocks is that earnings typically DONT get translated into durable capital gains but instead get translated into volatility. A stock holder captures the earnings only if she/he captures that volatility by rebalancing or selling call options or whatever. I think you'd like:
http://www.gmo.com/America/GMOInsights/
Re-Thinking Risk: What the Beta Puzzle Tells Us about Investing
David Cowan and Sam Wilderman - Published 11/17/2011
Convex and concave payoffs play a central role in the performance of many investment strategies. In considering a range of applications, including high and low beta stocks, options, levered ETFs, and hedge funds, the authors show how understanding these payoffs can have important consequences for understanding asset pricing and making investment decisions.
What a fascinating article. Makes total sense. Now it makes me wonder how feasible/expensive a put writing strategy would be for a VP
