You hear the term due diligence a lot with researching stock. Just how important is it...
Looking at the past performance of MAIN vs TCAP it would appear Main Street Capital has given more total returns so what's my complaint? Past performance is no guarantee of future returns. The price that the market has assigned to MAIN is separate from how management runs the company. If a few of their loans go bad now MAIN has to cut the dividend or sell even more assets. Whereas with TCAP if some of their loans go bad they can always resort to selling assets for a short term fix while they replace those loans.
Now I am not saying Main Street Capital is a bad company. They aren't doing anything illegal in hiding definitions because it is in their public filings and it continues to be on my investing watch list (3 tab of the spreadsheet). I think management is good overall and I will wait to see if the net interest income covers the dividend.
Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.
EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.
Looking at the past performance of MAIN vs TCAP it would appear Main Street Capital has given more total returns so what's my complaint? Past performance is no guarantee of future returns. The price that the market has assigned to MAIN is separate from how management runs the company. If a few of their loans go bad now MAIN has to cut the dividend or sell even more assets. Whereas with TCAP if some of their loans go bad they can always resort to selling assets for a short term fix while they replace those loans.
Now I am not saying Main Street Capital is a bad company. They aren't doing anything illegal in hiding definitions because it is in their public filings and it continues to be on my investing watch list (3 tab of the spreadsheet). I think management is good overall and I will wait to see if the net interest income covers the dividend.
Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.
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