I’ve taken it down because it needs rewritten to bring it up to date, but my investing philosophy is to essentially use stocks like bonds and get nice yields on my cash. In the meantime, if the stock goes up or down, I don’t care, as long as the stock doesn’t go bankrupt, I get my yield. I’ll sell when I need the cash or find a better yield. Chasing capital appreciation is a sucker’s game in the long run and there are dozens of studies to prove it.
OK, now that that’s out of the way.
Intel gave a presentation this morning where it said that it is doing all of these things to race ahead in the semiconductor game. The net result is that in just three or four years, the company expects dynamic growth.
In the meantime?
It will just stay mostly the same, profitably earning billions every quarter.
Sounds good right?
Not if you’re a Wall Street analyst who gets quarterly performance bonuses. Then, all that matters is growth. Growth, no matter how unprofitable the company is. Growth, no matter if you are ruining the long-term future of the company. Growth, growth, growth!
Did I say growth?
Now if you are investing with a time horizon longer than the meat lasts in your fridge, then earning billions and paying 3% per year while doing it and then also having a huge growth plan that will pay off in three or four years sounds like a great company to invest in.
I’m long INTC already, and I didn’t think I’d get another chance at 3% from Intel so I won’t be wasting it. I’m going in for more.
Do your own research. I don’t recommend, buy or sell, stocks.
The Investor Author
By Brian Nelson – Brian is a former Certified Financial Planner and financial advisor. He writes for the Finance Gourmet and other financial publications. The material provided on this website is for informational use only and is not intended for financial or investment advice. At the time of publication, Mr. Nelson owned shares of Intel, however, that may change at any time without notice. ArcticLlama, LLC, FinanceGourmet.com, and Brian Nelson, assume no liability for any loss or damage resulting from one’s reliance on the material provided. Please also note that such material is not updated regularly and that some of the information may not therefore be current. Consult with your own financial professional when making decisions regarding your financial or investment options