UNFORGETTABLE CHARACTERS I'VE MET.

The Land of My Ancestors in 2010.

We Hunted and Fished This Area. I suppose everyone has an old friend they would like to see again. Mine was from 1950. His family moved across the street from me when we were in the 7th grade. His name was Richard but we all called him Rich. Many labeled him a misfit. He often didn't tie his shoes, buttoned his shirt crooked, and could never seem to get the last bit of shaving cream from behind his ear. Some folks even thought he was a bit slow mentally. I knew better. Especially now that I am 73 years old and have a number of those problems myself.

He Was Always Using Big Words. I didn't dare ask what they meant because I thought he would laugh at me. Because of him, I just about wore out a dictionary. He also had a quick wit that could coax a laugh out of the most rigid sourpuss. No.....Richard wasn't dumb. He just occasionally did dumb things. One incident I will never forget is when he asked his mom if he could drive the family car around the block. He drove clear to downtown Denver, a round trip of more than 15 miles. The next door neighbor, Gayle and I sat frozen in the passenger seats, sometimes frozen with laughter. When we came to a red light, he would start shifting into low gear 50 feet from the intersection. Still, we made it home. Quite a feat for a 13 year old who had never driven before. Of course, he had no license, let alone a a learners permit.

Me and Rich Had All The Answers. We both knew that Franklin Roosevelt was the first president of the country and the man who wrote the constitution. He could have been the heavyweight champ but he had to spend his time being president so he could save the country from depression. We thought it was possible for him to rise from the dead and throw the Republicans out of office so as to avoid another depression which we all knew was just around the corner.

The Most Noble Activity Was Fishin'. We went fishin' as often as we could talk my parents or his into giving us a ride to one of the local lakes. In order to fish, you needed a hook a a line, and bait, but most important, a bobber. Without a bobber, white with a red tip, you couldn't see the fish bite. Rich also followed other principles Fish close to the bank, put your bait anywhere you see bubbles, and if it's big enough to bite, it's big enough to eat.

Our Favorite Fishin' Spot was Near Clear Creek. It was a gravel pit near the creek pictured above. We almost drowned wading the creek to get to that spot. We were carrying our fishing gear in the fast moving water which was shoulder deep. It was much deeper then than it is now and, despite its name, was no where near clear. We only had a few minnows left but it was enough to catch a couple of large bass and three or four reasonable sized crappie. We swore each other to secrecy not to disclose to others the location and the fact that minnows were the preferred bait.

The Things We Didn't Understand Back Then, I Still Don't Understand. One of the biggest mysteries was women. They are still a mystery even though I've married three of them and helped raise three daughters. I can't understand why people harm other people, especially children. I don't know why they had to cut down all the apple orchards and raspberry fields in the valley where we grew up. I don't know why they ran a major interstate highway along the west side of our fishin' hole. And I don't know why the teachers in our school and the adults in our neighborhood wouldn't let Rich be the way he was. Finally, I don't understand death. Why do we go through all these stages from grandchild to child to adult to father to grandfather, only to disappear into eternity. Maybe Rich knew the answer but every time we started to talk about it, we got scared and quit.

Where Ever You Are, Rich, I hope you are still leaving your shoes untied and buttoning your shirt different. I hope you are still spontaneous and creative and possessed of great wit. The trials and tribulations of life have a way of breaking us all into formation. I pray that it didn't happen to you, Rich.

I Found This In an Old Notebook I Wrote In 20 Years Ago. With the help of the internet, I have found Rich. One of his two beautiful sisters is still alive and in her mid 80's and they live in California. It's unlikely that we will meet again. He doesn't see well and I don't hear well so we have a problem communicating. I'm glad he's still alive and I hope he gets a lot of enjoyment from the years he has remaining.

REQUIEM FOR A WATER OAK

" ....Only God Can Make A Tree." Joyce Kilmer.

I've Always Loved Trees. That's why I live here. Hurricanes Ike and Rita along with a severe draught took 75 of these majestic creatures from us. Since you survived the hurricanes and lived adjacent to the water I was not worried about you. I forgot about the beaver who chewed all around you and removed your bark resulting in what appears to be a lingering death.

You Were My Favorite. You stood guard over my dock and provided shade to those who wanted to spend time by the water. You watched my grandson catch his first fish and my father-in-law catch his last. You watched me tip over in my canoe and get an unexpected cool water bath. Do you remember how I looked all around to see if any of the human species witnessed that. I was relieved that it was only you who saw that display of clumsiness and I was secure in the knowledge that you would keep it a secret.

I Was Patient With You. I lost numerous fishing lures that became totally meshed in your leaves and branches. When friends and family chastised me for these errant casts, I told them I was fishing for the elusive Tree Bass. I never became angry because I knew your benefits far outweighed the cost of a few fishing lures.

Looking At You Today. It fills my heart with sadness. My entrepreneurial neighbor, a Rice University Graduate who prefers to do landscaping work in the woods to corporate life , came by to tell me you were gone . I agreed since I have never seen your leaves turn brown in the 15 years I have lived here. Still, I couldn't bear to have you removed. I am hoping for a miracle. I want to see the brown leaves fall and new green ones emerge. I know I have probably lost a dear friend. If the Boss can find some compassion for you and me, I pray that your greenery can be restored. If not, I will someday have to admit defeat and provide you with a dignified exit from the planet.

WHAT A DIFFERENCE 50 YEARS MAKES.

The "man" on the left is a proud college boy who was the first in his family to attend college. The man above is the same man after getting his ass kicked by the world many times over. The man on the left thought he was pretty smart to have received
that college degree with a major in chemistry. The man above knows very well how lucky he was to be able to finish college and to graduate with mediocre grades. The man on the left earned his way through school with little help from family or student loans. He was lucky enough to have a job that allowed him to set his own hours and earn enough to pay his own expenses. He also got a grant from the National Science Foundation that paid for his last year.

Timing Means A Lot. College, even at a state supported university, costs many times what it cost in 1960. Retirement plans are often decimated by education costs for kids. In addition, many students graduate with mountains of debt. All this and the majority of students move back home after graduation. When I graduated, I had 20 or so on-campus interviews and 5 or 6 interviews where I was flown all over the country for on-site interviews. The company that hired me spent thousands to move my wife and I from Colorado to Delaware. No such luck today. Which leads me to the major point of this post.

Is College Worth It? I have to question the value of a college education today. Statistics show that the average college graduates earn considerably more over a lifetime than those without an education. I don't question those statistics but you also have to take into consideration that those who attend college have, on average, more ambition than those who don't. There have always been more opportunities for those with higher than normal ambition. Bill Gates and Steve Jobs and countless others have been quite successful without finishing college.

Keep My Opinions To Myself. My daughters have chastised me not to talk this way around my grandchildren. I guess I don't mean to say that I don't recommend college. If you can afford it your children will probably be better off with an education than without. If you have a child with a strong ambition to work in a field that requires an education, it is probably worth it. But if you are having trouble sending your child to college without jeopardizing your financial security, don't feel guilty. There are ways to accomplish educational goals without taking a vow of poverty.

Reflections on a Monday Morning.

"...When my son is born, and he looks up at me, he will see the man he has helped me become." My grandson expecting his first child in two months.

A Different Approach. My last post about dividends could have been quite useful to those looking for a more stable return on investment than the overall stock market; however, I didn't find it much fun to write. There are a lot of things more important to me at this stage in my life than money; therefore, I have decided to write more often about these things. Let me know what you think.

Working Together Works. Although I was very young during WWII, there is one thing I remember that was different than subsequent conflicts. We were all involved in that war. Most of us had family members in one combat zone or another and the casualty rate was so high that just about everyone had suffered a loss or knew someone who did. There were rationing coupons for gasoline, meat, and other commodities needed to support the troops. Formerly stay-at-home wives worked in defense plants. Old men did the same. Even kids were involved as we collected milkweed pods that were supposed to be used in parachutes. We made tinfoil balls to be processed into a reflective material to drop from airplanes. Even fats were supposed to be saved to be processed into glycerine for explosives.

Even The Press Was Different. Most journalists voluntarily refrained from publishing negative information about the war effort but that wasn't enough. Less than two weeks after Pearl Harbor the office of censorship was established. The government actively monitored news organizations both for propaganda purposes and to prevent leaking of secret weapon information. Freedom of the press was no longer an issue. They also suspended habeus corpus which would have required judicial treatment of anyone suspected of being an enemy of the war effort. In that environment torture of the enemy, no matter how severe, would never have come to light like it has during the war on terror.

You May Agree or Disagree. Contrast that environment with the present. A much smaller segment of our population is directly involved in combat. The average American is sacrificing little for the war effort. We are bitterly divided over the war and a number of issues and, although most claim to be in support of the troops, very little effort is is expended in showing this support. Then, as now, we are in the midst of a serious threat to our way of life. The difference is that now those defending that way of life are largely limited to a small fraction of our population, who's lives are in danger each day. Until we become more united in support of efforts to defend our freedom, it will be in jeopardy.

DIVIDENDS. THE ONLY GAME IN TOWN

A Decent Return On Your Investment Portfolio Involves Some Risk. I have met with several retirees who have lost 70% or more of their capital. What used to be the lynchpin of American industry, General Motors endured a bankruptcy and the stock holders saw virtually all their capital wiped out. If you had any of that in your portfolio at all, you suffered a major loss. Dividend paying stocks weren't exactly safe since several companies with 50+ years of ever-increasing dividends found it necessary to drastically reduce, or totally eliminate all payouts. Despite these dire circumstances, you either have to forgo any return on your investment (the after tax return on one year CDs is virtually zero or negative) or take some risk. Since I do not have enough capital to sustain my lifestyle without some return on my capital, I chose to take some risk in the market.



Cash Flow Is My Choice. If a stock does not provide some interim cash flow while I am holding and hoping the value goes up, I am not interested. Last December, I put together a sample portfolio of dividend paying stocks to provide some income with what i consider to be acceptable risk. The cost of the portfolio was $199,755 and the anticipated income was $11,950 or 5.98%. The main purpose of this post is to let you know how that portfolio has done since the mid December purchase date. An update of the individual components is as follows.



1. Ameron Corporation, AEE. This is a utility company with an original purchase of 600 shares at $17,130 and a dividend of 1.54 per year. The current value is $17,406 and the annual dividend has increased to 1.56 per share. So far we have colleccted $684 in dividends since the original purchase date.

2. Bristol Myers/Squibb, BMY. This a pharmaceutical company with an original purchase of 700 shares at $18,380 and a dividend of $1.28 per share. Current value is $21,784 and the dividend has increased to $1.32 per share. So far we have collected $693 in dividends.


3. Duke Energy, DUK. This is a utility company that we purchased 1100 shares at $19,300 with a dividend of .98 per share. Current value is $22,143 and the dividend has increased to 1.00 per share. So far we have collected $825 in dividends.


4. Lockheed/Martin Company, LMT. This is an aircraft company that we purchased 300 shares at $20,460 with a dividend of .98 per share. Current value is $21,747 and the dividend has increased to $1.00 per share. So far we have collected $900 in dividends.


5. Medical Properties Trust, MPW. This is a real estate company that owns medical properties. We purchased 2000 shares at $20,240 with a dividend of .80 per share. The dividend is still .80 per share and the current value is $18,520. Dividends have been $1,200.


6. AT&T, T. Most of us know and do business with this company. We purchased 600 shares at $17,526 with a dividend of $1.68. Current value is $21,264 and the dividend has increased to $1.92 per share. Dividends YTD have been $774


7. Health Care Properties, HCP. This is a company that invests in a wide variety of health care related properties. We bought 600 shares for $19512 with a dividend of 1.86, Current value is $21,264 and the dividend is $1.92. So far we have collected $864 in dividends.


8. Kinder Morgan Energy Partners, KMP. This is a company that owns pipelines for petroleum products. We bought 300 shares at $20.775 with a dividend of 4.44. Current value is $22,137 and the dividend has increased to 4.60. This year we have collected $1035 in dividends.


9. Fidelity National Financial, FNF. This is an insurance company that specializes in title insurance. Tha annual dividend was .72 per share. Current value is $21,658 and the dividend has decreased to .48 per share. YTD dividends have been $504.

10. Windstream Corporation, WIN. This is a wireless communication company for which we paid $26,800 and bought 1900 shares. Annual dividend was, and still is $1,900. We have collected 1, 425 so far.

Summary. The total value of this portfolio is now $206,478 or $6,000+ more than our purchase price. Total dividends at the current payout are $11,896 compared to our rate at purchase of $11,950. Seven of ten companies are worth more than the purchase price while
three are down. Seven of 10 companies have raised their dividends while one is lower and two are unchanged. I have not monitored these carefully during the interim which I would recommend any investor do. Chances are I might change one or two of these however, the main reason I have included these is that I believe it should be relatively stable in a highly volatile market. Total dividends paid out by this approximately $200,000 investment year to date have been $8,904. Considerably more than the average 1 year CD. I tend to ignore the approximately $6,000 gain since it could be up or down depending on a number of factors. That small gain could disappear or increase depending on investor sentiment.