Philip Morris International Crushing Gold
March 13, 2013
– Comments (12) |
RELATED TICKERS: PM
, GLD
, XOM
So for a number of years I have tangled with TMFSincheruna (Christopher Barker) about the merits of gold, in a variety of respects. I have been a longstanding believer in equities, and that the Fed's actions are not "unprecedented" but are a 1940's redux, that the world will not end, etc. At one point in early 2010 I told him PM would beat gold. Since at least once in the intervening time period Mr. Barker has reminded me that GLD was beating PM, I feel I must say that since the beginning of our informal wager, as of now, PM is crushing gold. It's not even close. And that's just the stock price of PM, not including the massive dividends, and certainly not including the even greater impact of reinvesting the dividends. So, right now, I'm winning. I continue to expect to do so.
As a reminder, all of my CAPS picks are real money, and they are my only stocks that I own. Checks indicate largest positions. I note in the comments/notes when I add. For example, I added to SODA at $28.50/share, so my real return there is much higher than CAPS indicates. I also added to INTC in such a way that my return there is lower than CAPS indicates. I added to BRK.B at $67ish, so, etc.
One other thing to note: CAPS does not include my ABBV position, because they didn't add it after the split, and by the time I realized that, I decided not to add it on a date totally unconnected with when I acquired it.
Another thing to note: CAPS is not accurately accounting for the ABT/ABBV split in the ABT stock price. In reality, that is a strongly outperforming pick for me. Overall I am doing well vs. the market over the three years I have been on CAPS.
Last year, my stocks generated almost $1,400 in dividends for me, of which about 30% goes into a non-taxed IRA. All dividends get reinvested. I run four DRIP accounts (BDX, LMT, XOM, and UNP -- $50/month). I pay almost no fees, because these companies pay all or almost all of your DRIP fees. The XOM position and the PM position (dating to pre-Miller spinoff, pre-Kraft spin-off, pre MO/PM split, when the stock was called MO) are my oldest, dating to 1998. The rest of my positions are either in my IRA or in my other self-direct stock-accounts.
I added nothing to XOM other than reinvested dividends from 1998 to 2010, and then in 2010 and 2011 as my CAPS notes reflect, I added a ton to XOM when it was in the high $50s to low $70s around the time of the XTO purchase. I restarted it as a $50/month DRIP earlier this year.
BAC is actually an option position, note.
My other CAPS player is a CAPS allstar. In that one I actually try to play this game, though I have been inactive on it for the past few months, because I just don't have the time.
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