In the past, these particular contracts
traded at a discount to fair value somewhere around 20 basis points, meaning institutions were actually being paid for buying them.
When you wrote that you would sell something only if you had a better opportunity, it sounds different from a traditional value investor (
buy at a discount to fair value and sell when it approaches fair value, all assuming you can determine a fair value that the market is not properly recognizing).
Whereas with DivGro I look for stocks
trading at a discount to fair value, it is not so important for them to buy at a discount, since they're buying a fixed dollar amount of the same stock every month.
Shelby Davis invested in high quality, well managed insurers that were trading
at a discount to fair value.
Focus on buying high quality companies that are trading
at discounts to fair value.
Whereas with DivGro I look for stocks trading
at a discount to fair value, it is not so important for them to buy at a discount, since they're buying a fixed dollar amount of the same stock every month.
My focus is on buying dividend growth stocks that trade
at a discount to fair value.
I follow the value investing approach to picking stocks, which involves buying
them at a discount to their fair value.