Stop Market Timing and Start Dividend Investing

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Often enough, you will hear from conventional financial planners that quickly entering and exiting certain stock market investments has the realistic possibility of being a futile endeavor, and usually the explanation “why” simply focuses on the fact that stock market prices are fickle in the short term and can take years and years to correctly reflect the value of the enterprise you have in mind. That’s absolutely part of the equation, but there is more to it than that: almost all of the stock market’s gains come in very short bursts that are wildly unpredictable.

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Originally posted 2013-06-06 09:00:05.

Visa Stock’s Investment Returns Through 2028

From a pure business dominance perspective, I can think of few businesses in the history of Western Civilization that have created a better combination of ubiquity and high growth than the e-payment network giant Visa (V). Companies that receive payments, which are loathe to pay out fees for each transaction, have little choice but to gin up and bear it because customers avail themselves of making purchases with either Visa, Mastercard, American Express, Discover, a debit card, a store card/private label card, or cash.

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Be Happy When Stock Prices Fall (Really)

Here is a quick overview of today’s movements in the stocks I “follow” on my Seeking Alpha homepage:

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As you can see, the price of every single company that I follow went down today. For some people that try to buy a stock at $30 and sell it at $70, that is bad news. It means they are losing money.

But if you craft a long-term strategy and think like a business owner, you will develop the kind of wiring that appreciates falling stocks because it matches your goals. When I invest, I am trying to buy the most future profits (in the form of dividends and retained earnings) at the lowest price I can, adjusted for risk. I make an exception here and there to DRIP into a high quality stock, or set aside 3-5% of the portfolio for speculation, but aside from those two exceptions, that’s what I’m about.

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Originally posted 2013-06-05 22:34:28.

Clint Murchison Sr.’s Diversification Beyond Texas Oil

Between 1918 and 1948, approximately 12,500 various individuals and business entities purchased and/or leased property in Texas for the purpose of extracting oil and participating in the get-rich-lifestyle that appeared within reach during the famous Gusher Era in Texas.

Of these various oil men, the “Big Four” were H. Roy Cullen, H.L. Hunt, Sid Richardson, and Clint Murchison, Sr. This raises an obvious inquiry: What was so distinguishable about their behavior that they were able to earn the top 0.01% of results among a slew of competitors that had the same idea?

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Dividend Investing Provides Immediate Rewards For Delayed Gratification

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If we take a “big picture” look at any of us are trying to accomplish when we invest, we are almost always trying to set aside some money today with the expectation that we will have even more money during some distant tomorrow. That’s straightforward enough. If we thought that a $10,000 investment today would only be worth $9,000 in 2016, we wouldn’t do it. The tricky part that deters some people from investing is the fact that it would be more enjoyable to spend $1,000 today buying good pub food, St. Louis Cardinals baseball tickets, or Bruce Springsteen concert tickets. Those experiences provide real utility, and every dollar you invest today also means, by definition, you are not consuming something.

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Originally posted 2013-06-05 17:10:20.