Investing Gives You A Snapshot Of Human Nature


One of my nerdy enjoyments about studying the capital markets and reading the annual reports of individual stocks is this: the data actually reflects the world as it is, not how it should be.

The US government spends a lot of money advertising against tobacco usage, and yet, when you review the financial performance of firms like Altria, Lorillard, and Reynolds American, you can see that they have a client base that is barely declining at 3% per year, and they are able to offset this dilution with price increases in their products.

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Originally posted 2013-06-14 13:16:31.

Why You Should Follow Jason Fieber at Dividend Mantra


My favorite line from the Bruce Springsteen song Badlands is “Talk about a dream, try to make it real.” In the financial blogosphere, I can think of no one who follows that adage better than Jason Fieber, the writer at the website I highly encourage you to click over to his website and follow him regularly.

I can think of no other dividend investor out there who is so explicit about his goals and what he wants out of life, and then documents his process of making it happen. His goal is to become financially independent by forty years old. The income from dividend-paying businesses are the means by which he is accomplishing his goals.

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Originally posted 2013-06-12 09:00:16.

The Purpose Of My Investing Articles


Every now and then, I find it important to step back and assess the big picture of what I am trying to do. Today, I wanted to share with you the main purpose of what I am trying to accomplish when I write articles here on my website or over on the investment advice website Seeking Alpha.

The short answer of what I am trying to accomplish is this: I want you to think like business owners. As a corollary to that, I want you to drown in income from your business ownership stakes. I want you to get richer, and see more money show up in your checking account, just for staying alive another month.

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Originally posted 2013-06-11 17:48:27.

Life-Changing, Big Money Stock Investments

Normally, I cover the “batting average” type of issues associated with wise stewardship of one’s money. Spending less than you earn, doing something with the surplus like diversifying into ownership interests in the most profitable companies the world has ever seen, and so on.

There is another component to it that is less often discussed–and this is the “home run” component, or the magnitude effect of your decisions.

You may have previously encountered the Warren Buffett quote that, when it is raining gold, it is better to reach for a bucket than a thimble. This advice was summed up well by Charlie Munger in Poor Charlie’s Almanack with the following quote on page 26:

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The Glory Of Investing In Utility Stocks


I love me a good utility stock. As far as defensive investments go, they are often about as stable an investment as you can find in this world. There are no sure things in life, but betting on people to continue to use water and electricity is about as close to a guarantee as you can find in common stock investing.

York Water is one of those utility investments that should make an income investor want to sing. It really has the most beautiful dividend history of any company I have ever come across. York Water has been paying uninterrupted dividends since 1816. That is awesome in every single sense of the word. Your great-great-great-great-great grandfather could have come over on the boat from Europe, bought 100 shares of York Water stock, and you, the great-great-great-great-great grandchild would still be collecting the cash payments every ninety days today. Oh, and the dividend has grown three thousand fold since then, so you would literally be a water baron right now.

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Originally posted 2013-06-08 13:02:19.