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User Info The Consumer Is Strong!; entered at 2023-09-12 07:50:35
Tonythetiger
Posts: 940
Registered: 2019-01-27 A Van down by the River

Benjamin Graham wrote..
The true investor will do better if he forgets about the stock market and pays attention to his dividend returns and to the operation results of his companies.


This is the principle that has turned my investments into a winning proposition. If you are reasonably certain that the dividends will keep arriving, then the price of your stock is a secondary concern. If fact, lower prices means you can buy more dividend income when you have cash to invest and the courage to pull the trigger.

For those who elect to go the indexing route the price is a primary concern because the only way to reap your returns is to sell shares, so TG's warning in that regard is spot on. Price multiples for the high flying stonks of today can and will eventually revert to more normal levels as they always have in the past.

Lots of people will re-learn this lesson the hard way soon enough. Try to avoid being one of them if at all possible.

Reality is going to reassert itself eventually and it won't be pretty (in many dimensions).

2023-09-12 07:50:35