Wednesday, June 11, 2014


Collected dividends from CNP and LLY this week which were automatically reinvested, increasing my stake in both stocks.  I have a lot of confidence in both companies and consider them part of my core portfolio.  With a good investment, even a small stake can grow into a large amount over a period of time.  So I'm in it for the long haul on most of my individual stock holdings.

Nothing brought this home more than the recent annual report from one of my bank stocks.  Now you don't usually think of bank stocks as being tremendous growth companies, although they do provide growth.  However, in this case the stock had created a total return of over 4,000% over the past 21 years.  The company went public back in November of 1993, the same year I started investing.  If I'd come across the stock then and purchased just $500 worth of shares and held the stock reinvesting dividends, I'd be retired now.  It was a real eye opener for me.  Of course I've held the stock for several years now and have been quite pleased with my return, so I have no regrets about the missed opportunity.  While I missed that opportunity, I think I might be in on a great opportunity with Hawthorne Bank.  They're a growing company and have really been ramping up efforts to boost business and upgrade their image.  I like the way things are going with Hawthorne and I'll be a shareholder for several years to come, so it's possible I could see the same type of growth I missed out on from the other bank.

It just goes to show, it doesn't have to be the next big tech company or the next Walmart, tremendous profits can come from well run companies in less exciting areas of the market. 

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