This is true if you’re buying stocks (hens) for eggs (dividends) — which is true for me because I’m one of those rare cash-flow investors.
But I fear that the vast majority of investors are price speculators, not dividend farmers.
But I fear that the vast majority of investors are price speculators, not dividend farmers.
Does it suck seeing the money we just put in there drop? Yes. Though I know I am in it for the long haul, not the get quick rich approach or attempting to time the markets.
Index funds with low expense costs are my personal strategy. While I'd love to retire now (early 30s), my realistic goal is to retire at 59. The plan I have now with moderate ROI allows that - patience while staying the course long-term with your financial plan is key.
Some traditional companies also have lowish dividends, but they will of course compound over time, usually old-fashioned companies like banks or airlines. A good place to look is Warren Buffet's portfolio.
I meant their speculative portfolios will die (probably).
I keep my YOLO options portfolio at 1% of my net worth. Gambling money.