04-10-2014, 12:10 PM
It is my belief that the "typical retail investor" is not that savvy with investments. I am simply amazed at the ignorance around my office when people are talking about the stock market. Many are scared to invest because it's all a big scam for the banks to take our money. Others treat investing like gambling and are hoping for that big payoff that will make them rich.
Very few (maybe none) are actually buying high quality companies at decent prices and holding for the long term.
I follow the dividend growth strategy. I haven't had to sell a stock for the past 2 years. I'm doing a few percentage points better than the S&P 500 benchmark and way better than the quoted 2.94% average return of "typical retail investors."
However, with that being said, I love dividend investing. I love researching companies, reading about companies and investing and writing about investing at my own site (http://www.dividendgrowthstockinvesting.com). I'm not the "typical retail investor" because investing is my hobby and I'm willing to put in some time necessary to be successful. For others that won't do this, I would probably suggest exactly what the article is suggesting and point them towards a couple index ETF's. However, I do believe that with a little effort and the right strategy (dividend growth), we retail investors can do quite well investing.
Very few (maybe none) are actually buying high quality companies at decent prices and holding for the long term.
I follow the dividend growth strategy. I haven't had to sell a stock for the past 2 years. I'm doing a few percentage points better than the S&P 500 benchmark and way better than the quoted 2.94% average return of "typical retail investors."
However, with that being said, I love dividend investing. I love researching companies, reading about companies and investing and writing about investing at my own site (http://www.dividendgrowthstockinvesting.com). I'm not the "typical retail investor" because investing is my hobby and I'm willing to put in some time necessary to be successful. For others that won't do this, I would probably suggest exactly what the article is suggesting and point them towards a couple index ETF's. However, I do believe that with a little effort and the right strategy (dividend growth), we retail investors can do quite well investing.