The Investor’s Worst Enemy

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If I had to make a short list of the investor’s biggest enemies, one of the top slots would be dedicated to the fact that we receive stock market quotations during every second of the business day from Monday through Friday. It completely turns otherwise intelligent investors into short-term traders.

Imagine if buying a stock was something you had to earn. You know, pretend you had to hike by wagon hundreds of miles to New York every year in a sort of reverse Oregon Trail style to purchase your stocks. And for good measure, let’s pretend the stock market was only open one per year. Think about what that would do to your stock selection and screening process.

If buying and selling stocks were a burden, you would put a lot of thought into the underlying business models of the companies you select, and you would spend all your time … Read the rest of this article!

Walgreens’ Rise As America’s Dominant Drugstore

There is a list of about 300 companies in the world that, if you bought even a token amount of the company’s stock a few decades ago, you would have created a silly high amount of total cumulative wealth.

Walgreens is one such example. Shares of the Illinois-founded drugstore have compounded at 18.7% over the past thirty years, turning even a trifling $2,500 investment into over $1 million in personal net worth.

It’s not like that would have been an inaccessible amount of money to have on hand. In 1988, the average Famous-Barr credit card balance after the Christmas season was $1,232. For a member of the middle class, the amount necessary to buy a small chunk of stock in 1988 was only the equivalent to two or so Christmases worth of spending. If someone had the capability to put $2,500 or so in knickknacks on the Famous Barr credit Read the rest of this article!