How Alfred Cowles III Took The Fear Out Of Investing

In the 1930s, a youngish man named Alfred Cowles III founded the Cowles Commission for Economic Research. One of Mr. Cowles’ first projects involved back-testing stock market performance from 1871 through the Great Depression, paying special attention to the effect of reinvested dividends during this time frame.

This was a purely academic exercise—back then, dividends weren’t something that you reinvested because the technology and affordability didn’t exist for it to make sense. It wasn’t a thing. If you owned $40,000 worth of AT&T, you collected your $800 in the mail every three months and used the dividends to help you support your lifestyle. Wanted to make a house payment and take care of the utilities? That’s what the AT&T dividends were for. Wanted to reinvest? You’d have to make a special buy order to purchase 100 shares. If AT&T was trading at $30 per share, you’d have to come up … Read the rest of this article!

Two Mid-Day Purchases

I just had to stop what I was doing in the middle of the day and purchase shares in two companies that fell in value by a meaningful amount over the past 24 years. I also produced an analysis over at Patreon which you can access by subscribing here. That’s the thing about investing–you never know when an opportunity will arrive. There is nothing particularly special about a random weekday in January, yet here we are.

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