Life Is About More Than Investing

A professor stood before his philosophy class and had some items in front of him. When the class began, wordlessly, he picked up a very large and empty mayonnaise jar and proceeded to fill it with golf balls. He then asked the students if the jar was full. They agreed that it was.

So the professor then picked up a box of pebbles and poured them into the jar. He shook the jar lightly. The pebbles rolled into the open areas between the golf balls. He then asked the students again if the jar was full. They agreed it was.

Continue Reading!

Should You Buy High Dividend Stocks?

According to the search engine terms that drive people to this site, one of the most common questions is about whether someone should purchase the common stocks of companies with a high dividend yield. It’s a good question: buying, holding, and reinvesting the dividends from high-yielders like BP and Royal Dutch Shell has been one of the best ways to build long-term wealth over the past twenty, thirty, and forty years, and studies of what happens when dividends are allowed to build on themselves undisturbed for long periods of time is the reason why people like Wharton Professor Jeremy Siegel point out that the old Philip Morris was the absolute best investment you could have made over the course of 1926 to 2006 (among your options that existed in 1926).

Continue Reading!