Aug

27

I've owned OLN since almost the beginning of the year. I saw it as a good defensive move with a solid dividend that we could profit from due to potentially short term inflationary issues in metals/chemicals and the fear of the new administration's negative leanings towards guns and ammo.

This stock has been a volatile disappointment except for the fact that it was paying a solid dividend. Then today it finally explodes upward while the market and my other positions are flat to down. It's interesting to watch a portfolio be up for the day when it should be down if it weren't for this one stock. It's also unfamiliar since just the opposite seems to happen to me more often than not. In this volatile market I notice that most of my value holdings are close to the index returns on any given day, while one or two big mover stocks seem to move the portfolio's either up or down.

The nice thing about this type of value investing (note that I said "investing" and not "trading" or "speculation") is that it seems to be profitable in that a well constructed value portfolio (however you define that…. i.e. your methodology for picking out potential winners) seems to float around the return of the indexes. So you end up with capital appreciation around the return of the indexes, but if one seeks out superior dividends — well, that's just icing on the cake and gives the opportunity for excess return. I wonder if the more adept value investors on this site have some comments or can shed some light that might add some clarity.


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