Geraldine Weiss the queen of the dividend and investing

Geraldine Weiss is considered one of the most successful women in the investing industry. Her investment strategy makes the percentage profitability of SPX and Berkshire Hathaway down and down.

In 1966, Weiss started publishing a 13-share “The Lucky 13” bulletin, with its portfolio won annually 11.8%,compared to  9.7% for Berkshire Hathaway and 4.5% for SPX since 2000 to date.

Geraldine Weiss’s strategy consists of one simple rule: Buy shares when Dividend Yield is within 10% of its highest historical value or at its highest point in the past five years / Sell Shares when Dividend Yield is within 10% of its lowest historical value or bottom in the last five years.

This simple strategy would be successful in predicting this sell offs in Apple (AAPL) and Microsoft (MSFT) as we can see from the graphs below:

Again, if we use Mrs. Weiss’s investment strategy, we could have correctly predicted this bottom of IBM shares:

Geraldine’s interest in investing comes at an early age when she studied business and economics at the University of California in the 1940s, she reads every investment book in the public library in San Diego.

“After all my reading, Benjamin Graham and his books “Security Analysis” and “The Intelligent Investor” have really influenced me more than anything, she says. However, she dropped Graham’s 10-point checklist and decided to continue her own pioneering analysis in the dividend yield cycle.

Weiss had three main reasons to believe that dividend yield is the best measure of value. Dividends result from revenue; a tendency to increase dividends is a growth notice; and the repeated margins of dividend yields reliable models of underestimation and overestimation.