In 2016 I handed my boss a two-word resignation letter. “I’m resigning.”
That letter was maybe the best thing for my investment portfolio. When you don’t get a paycheck anymore it forces you into decisions.
Need cash for bills? Take some profits.
Want to buy a new stock? Gotta sell something.
Increase the size of an investment? Figure out what to trim.
Incidentally, this is what business owners do. What companies pay CEOs for. To decide how...
I started questioning my entire investment strategy. I had built a stock portfolio for growth, and was sure it was a horrible mistake.
I had already quit my day job to live off stocks, but was only getting $3,798 in dividends.
That’s the reason retirees love “income portfolios.” They invest their nest egg in things that generate enough income to fund their retirement. Typically stocks like AT&T or Coca-Cola or whatever that pays a fat dividend.
So,...
Every spring I watch a farmer plant his field.
He adds fuel to the tractor, buys fertilizer for the soil, and visits the supply store for seed. Nobody says, “What a fool! Wasting time and money on that stupid exercise.”
If you say anything at all you say, “Think about that bountiful harvest.”
The farmer is investing now. He gets nothing in return until later. But no one questions him because that’s how farming works. He invests now, harvests...
Some of my best, most enjoyable days have been when I’m disconnected from the internet. I think it’s a healthy practice, to walk away from it. It’s a great reminder how noisy it all is.
But when I think back to the times I’ve taken long internet breaks I was always anxious to get reconnected.
Like I’d travel to Ghana or Nicaragua or wherever for a month. My phone wouldn’t work so I’d just leave it off. I’d...
When someone claims to have amazing long-term stock gains you know what else they have? Losses.
But investors hate losses!
Actually, it’s a common human trait. It’s been said the pain of loss is two times as powerful as the joy of gain.
In other words, a stock you bought that quickly rises 50% feels wonderful. You walk down the street with your chest puffed out. Your friends ask for investing tips. Your spouse thinks you’re brilliant.
But staring at a stock...
