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Bill Spetrino's Lessons on Dividend Investing

By    |   Sunday, 26 April 2015 08:52 AM

Bill Spetrino, editor of the Newsmax newsletter "The Dividend Machine," offered tips on dividend investing in an interview with Newsmax TV.

His strategy comes from the Warren Buffett school of investing.

"I started studying Warren Buffett, and he said to be greedy when others are fearful and fearful if others are greedy," Spetrino, author of "The Great American Dividend Machine: How an Outsider Became the Undisputed Champ of Wall Street."

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"When the conventional wisdom tells you to buy a stock, I sell it. When someone doesn't like a stock, I'm in there buying," he told told Newsmax TV's "MidPoint.”

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Patience is a virtue in investing, Spetrino said.

"The journey of 1,000 miles starts with one step. If you want to get into good shape, it's going to take you 20 years to do it or 10 years to do it. You're not going to do something quicker than everyone," he said. "It's a lifetime plan."

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Spetrino also stresses the importance of literally doing your homework before investing in a stock.

"There's two kinds of investors. There's the fundamental investor and there's the technical investor that looks at charts," he said. "I follow my mentor, Warren Buffett. I read between 50 and 150 hours' worth of data before I invest in a stock," he said. "I do my homework first and I give each stock three to five years," he said.

"The biggest fallacy that I found is that most people are focused on what they're going to make. They say a dollar saved is a dollar earned. The fact is a dollar earned today with our tax system is 65 cents. A dollar saved is a dollar," he said.

He said one reader of his book said they will now save $1,400 a year by following Spetrino's advice and now have the money to start investing.

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Spetrino also cited the strength of three favorite stocks.
  • "Johnson & Johnson's been around since 1886. They started out with Band-Aids and Johnson & Johnson shampoo. Now they're in consumer goods, they're in medical sales, devices, and they are in the pharmaceutical business. You don't have a distribution system like they do.
  • "Altria, they have 50 percent of the tobacco market. There's no advertising in tobacco, so how are you going to beat somebody? How are you going to bring out a new product?
  • "Apple. Apple is its own universe. They have older people, they have younger people. My daughter taught me about Apple. Then I looked at the balance sheet, they have $150 billion of cash. And last quarter they cash flowed $1.2 billion a week."

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Bill Spetrino, editor of the Newsmax newsletter The Dividend Machine, offered tips on dividend investing in an interview with Newsmax TV.
bill spetrino, dividend, investing, stock
Sunday, 26 April 2015 08:52 AM
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