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We retired at 60 3 years ago. We have reasonably priced health care until 65, a pension, and a well-diversified portfolio. We have enough liquid assets to cover our expenses and fun for probably 10 years before having to sell equities. I watch my money, but don't worry about it anymore. That was my objective. To retire and never worry about money again.
If I posted my investments, I'm sure I'd get skewered for some of my choices, but I don't care. I have more money than when I retired and don't lack for anything.
I was blessed in my college days to have a professor who was passionate about investing. I credit him more than anything to my good fortune today. I started by buying DRIP stocks directly from companies to avoid fees. I learned early on through firsthand experience that a well-constructed portfolio is way more valuable than trying to time the market. I've seen a lot of ups and downs over the years. They used to freak me out. Now I look at days like this as opportunities to put some of the cash to work.
Quote:
Originally Posted by HereOnMars
This is a great post THIS is exactly what young people (today) should be striving to achieve. And I believe many are even if investing/trading styles differ. Yours worked beautifully.
Stocks in Brasil all pay large dividends (assuming they are profitable). As a country that had hyperinflation well within living memory there's an inherent understanding as to why dividends paid today are more valuable than total holding of tomorrow, and equity needs to be treated very carefully and measured as to how much the business needs to retain. Also, none will hold the static amount dividend. It will be different each year. (up and down)
In the land of solid dollars and 0% interest rates for a very long time, that concept gets lost and forgotten.
I've been investing in Brazilian companies for 5+ years, and have done pretty well with VALE (+103.65% over 5 years, not counting dividends) and PBR (+72.1%). Ironically, when I tried to lesson or spread out my risk by investing in a broader range of Brazilian companies through EWZ, which is an ETF that tracks the investment results of the MSCI Brazil 25/50 Index, I did horribly (-3.83%). So I sold my position in EWZ and just added those additional funds to my positions in VALE & PBR directly. Those two companies make up about 30% of the Brazilian index anyway.
And although it is anathema to Mathjak, I enjoy receiving their very large dividend payments.
If it is a good stock and total return is good and you want distributions from it ,why not.
I have nothing against Draws as dividends .
But I do find fault with those who claim they don’t care what the total return is or share price
It is the misinformation and myth I am against that gets spread here
Why does it bother you when people claim they don't care about return or share price? Find fault? really? myth? Misinformation? I think dividend stocks have a place in MY portfolio. I totally understand they aren't free money, I don't look at dividends that way.
I bought shares in Duke Energy decades ago through a DRIP. It wasn't flashy but in my naïve brain at the time, I thought it's a good steady business with a nice dividend. Now, almost 40 years later, I take the dividends as income. It supplies a nice paycheck and I'd have to look and research to see actual performance. I don't really care to be honest. It's worth way more than I have in it and unless something changes, I'll probably never sell it. Doesn't mean I don't understand dividends because I don't care. It means I'm happy with the role it plays in my investments regardless.
My issue with you is that you respond to people with "That's foolish". Same as calling people a fool. If a teacher responded to my child that way, I'd be headed into have a talk. If your aim is to educate people, you need to work on your presentation. People make vague statements and get jumped on because you assume they know nothing.
We have a friend who is in wealth management. He does very well and his clients love him. Most of his clients are very well off and don't want to be bothered with managing their money. For the convenience, they are shelling out 1% or more in fees. His perspective is most people only care about having the income they need and not losing money. The inner mechanics of how that occurs doesn't interest most of them. In my opinion, his biggest strength is knowing how to read the room. He educates where he needs to, but can tell when they really don't care or are totally confused. And in the nicest way, explains things to them so they can understand it without feeling stupid. Before he pontificates over every detail, he asks if they understand.
I've noticed one thing. Since the market has been correcting all year, a lot of the people who are long on stocks are getting frustrated and posting in a manner that they might not have been previously. It pains them that their way isn't working right now. My $.02.
I've noticed one thing. Since the market has been correcting all year, a lot of the people who are long on stocks are getting frustrated and posting in a manner that they might not have been previously. It pains them that their way isn't working right now. My $.02.
But it has always been that way with retail investors,chasing the market,buying high and selling higher,why goes to Las Vegas,when you can play the casino at home?
I can cite some of the obvious cases-NIO,RIVN,GME,AMC,HOOD,and lets not forget cryptos.
But it has always been that way with retail investors,chasing the market,buying high and selling higher,why goes to Las Vegas,when you can play the casino at home?
I learned a lot during the dot-com boom. Apart from everything, I took $2,000 and turned into $14,000 in a short period. I was going to be rich, rich, rich. Lol.
When it dropped back to 8 grand in an equally short period of time, I sold it all and bought a motorcycle. Lesson learned.
Other than my DRIP stocks from forever ago, I rarely do individual stocks these days.
Why does it bother you when people claim they don't care about return or share price? Find fault? really? myth? Misinformation? I think dividend stocks have a place in MY portfolio. I totally understand they aren't free money, I don't look at dividends that way.
I bought shares in Duke Energy decades ago through a DRIP. It wasn't flashy but in my naïve brain at the time, I thought it's a good steady business with a nice dividend. Now, almost 40 years later, I take the dividends as income. It supplies a nice paycheck and I'd have to look and research to see actual performance. I don't really care to be honest. It's worth way more than I have in it and unless something changes, I'll probably never sell it. Doesn't mean I don't understand dividends because I don't care. It means I'm happy with the role it plays in my investments regardless.
My issue with you is that you respond to people with "That's foolish". Same as calling people a fool. If a teacher responded to my child that way, I'd be headed into have a talk. If your aim is to educate people, you need to work on your presentation. People make vague statements and get jumped on because you assume they know nothing.
We have a friend who is in wealth management. He does very well and his clients love him. Most of his clients are very well off and don't want to be bothered with managing their money. For the convenience, they are shelling out 1% or more in fees. His perspective is most people only care about having the income they need and not losing money. The inner mechanics of how that occurs doesn't interest most of them. In my opinion, his biggest strength is knowing how to read the room. He educates where he needs to, but can tell when they really don't care or are totally confused. And in the nicest way, explains things to them so they can understand it without feeling stupid. Before he pontificates over every detail, he asks if they understand.
my .02. Worth as much.
Investing is about meeting our goals and needs …
You cant know where you are , whether your investment will get you there
Some need tobknow if they died whether They have state estate tax issues or if you made poor investment choices or even wrong choices without knowing what your investments are returning .
Don’t confuse not caring .
I doubt there are any successful investors that can’t tell you how their investments are doing and not just the dollars being handed back to them . They know their returns .
It does not have to be every day but certainly quarterly or semi annually one should take enough interest in something so important as their life savings.
How do you know you made a wise choice if you don’t look at the return or at least the growth .
If you are getting income spun off and those investments are falling deeper in the hole with each payment like a GE you got a problem .
you don’t need to compute the exact return but you do need an idea of how your investments are growing and if they are growing and you can’t do that without looking at values not just distributions
Last edited by mathjak107; 05-22-2022 at 12:29 PM..
Accounting is my field, and there's really two trains of thought. Since the 30's, the United States has really become the premier in Accounting, in part because of legislation and the SEC. The basis of this accounting is in dollars, and when will dollars invested be returned to cash.
cash (already cash, but sometimes cash has restrictions)
AR - Cash in say 30 days less an allowance for short pays.
Inventory - Turns to AR in say 60 days less an allowance for obsolesence or lower of cost or market
Fixed Assets - Will turn into a portion of the cost of inventory over a long period of time.
This is because we have always had the dollar, which has been stable.
For international IFRS, they are much more concerned about value....because the currency being dealt with is not necessarily stable. For any farming corporation reporting from Nigeria, their cost basis of their land and equipment is likely in pennies. If they took foreign loans to pay for it, they can seem bankrupt on a cost basis valuation. Of course, the crops produced at this point will seem like a fortune compared with the historical currency basis on which the investment was originally made.
Companies that don't pay dividends are defying the very nature of why investment is made. Investment is made in order to receive a portion of the surplus earnings generated from capital. $1 received today is worth much more than $1 received 20 years from now. For many years, tech companies have defied this logic with the understanding that every $1 is needed to produce a still higher return. As interest rates finally move towards nomalizing, this agreement will likely be revisited by investors. If Netflix is no longer growing and has instead turned into a mature company in a cash cow phase, why should it not begin passing along profits to the investors? One could argue Google is the worst at this. Yet, with their tiered stock, forcing the issue becomes impossible unless Brin and Page agree. How is Facebook achieving value company valuations?
The market will value things differently....a few years ago it was all about revenue growth at any cost. As interest rates return, I would expect stock valuations can only be protected with dividends. Of FAANG, only Apple has survived without a punishing crash....and only Apple pays a dividend. Not a large one, but it knows to reward its investors.
That's the point of the dividend vs no dividend. These companies get free money for a long period of time, now do the returns happen or are we to be turned out into the cold.
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THIS is exactly what young people (today) should be striving to achieve. And I believe many are even if investing/trading styles differ. Yours worked beautifully. 
