Wednesday, July 24, 2013

Cogs

This is a post about things way over your head.
I hope you enjoy it.

For the first time in 17 months, HP stock has consistently stayed above what I bought it for.
"Adjusted basis."
Of course, I probably broke even some time ago, with the consistent $3.30 dividend I get every quarter.

And, as we all know, break even point is fixed costs divided by contribution margin per unit.
Which doesn't apply here.

So here's to a 2.3% return!
Note: this is approximately 230 times the annual return in most savings accounts (.01%).
Don't get me wrong- my heart broke a little bit when it went down to $17 a share last fall and became the Wall Street Journal's favorite thing to write about.

But you want to know my investment strategy?
Allie J only sells at a gain.

Can you believe it's only Wednesday?

I hate when economic models are like, "This model assumes no taxes." or "This model assumes no transaction costs."
GUESS WHAT.
There ARE pesky little things like taxes and transaction costs, and these things ARE relevant because they affect people's DECISIONS. Therefore your models are relevant, Miller and Modigliani.
Like saying that "dividends are irrelevant".
Pssh. Your IDEAS are irrelevant.

That's what I think about economics sometimes.
Last semester, I was studying for a test and came across this formula:

Effective annual rate : [(1 + INOM/M)^M] - 1

And all I could think was: [(1 + I NOM NOM NOM NOM...

Because the real rate plus inflation is HUNGRY!!!!!!!!!!!!

Apple stock rose $48 from yesterday. According to a news release written an hour ago, they're coming up with new stuff that will premier in the fall and into 2014. So this one's for all the haters (including myself).
Hopefully it will actually be new things and not old ideas that Apple just recently decided to finally participate in.
Like that time they introduced "tabbed web-browsing".
Yeah.

Well, I'm going to go take the CPA exam.

This stream of consciousness brought to you in part by,
TWS

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2 comments:

  1. Hoping you did well! Man, I want some dividends sent to me. That would be nice.

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  2. I don't think I did bad. I'm hoping my weeks of studying paid dividends.

    ~haha~

    Dividends are really cool, man. The epitome of "unearned income".
    Because it's income.
    That you don't have to work for.

    ReplyDelete