Stocks that Float: TANKERS & DRY BULK SHIPPERS

[xanadu90]

You are so right, Milner: If you want to have some additional income later in your life, dividend paying stocks are a good way to get it. If you find a starting-up company in a VITAL sector, which has a GOOD MANAGEMENT, and you have PATIENCE in building your portfolio, you have good chances to succeed in your effort.

But patience is really needed, it takes years - and not months - to gather the sufficient amount of stocks (if you are not already a multimillionaire.. lol). In the first years buy small amounts of the stocks of your favourite company regularly, because in this way you also follow the development of the company, and if something goes wrong, you do not loose so much. When the company starts to show it is strong and growing, add the lots and invest the already possible dividens back to the company. Follow the sector, and read all the company's filings carefully - there may be told things that do not show elsewhere.

Put this company in the sidelines and do not stare day in day out the shareprice on the screen - that's what makes longterm shareholding frustrating and booring. Just use your other investments for the daily trading.

A good management of the company is the most important thing, a management, which can handle successfully bad times too. And of course the company's policy - are the shareholders treated as investors in the company and thus as a part of the company, or are they treated as a necessary nuisance to the management.

In the course of the years I have been a shareholder in FRO, GOGL, SDRL etc. I have always felt as a respected shareholder. JF's shareholder policy is by no means charity, of course he takes his own gains from it. But I like it when the management says:"All the money WE DO NOT NEED we distribute to the shareholders". In the course of the years I have noted that - in spite of doubtfull analysts - this kind of corporate policy works excellently :)

I have noticed that the shareholder-friendly policy is
spreading. Companies have noted its strong positive effects.