A good Read - Be Aware Of Your Dividend Bias
https://rationalthinking.net/beware-your-dividend-bias/
Excerpt -
"In the stock market, it’s easy to fool yourself. Decision-making is all about making good or bad outcomes. We all fall prone to what Annie Duke calls resulting: we judge the quality of our decisions on the outcome, not the other way around. But you can have a good outcome despite a bad decision, and you can have a bad outcome even though the quality of your decision was good.
The same goes for Dividend Investing. We get lured by receiving tangible payments and we forget the opportunity cost of the capital distribution. Warren Buffett has never walked into his office just to focus his investments on one asset class or one style of investments. Why should he limit himself? It doesn’t make much sense to potentially exclude many good investments. Dividend investors get obsessed with “income” and ignore the many other very viable options". - Oddmund Groette
Sound reliable Portfolio construction takes years, and should encompass many forms of investment securities, correlated and uncorrelated. Opinions vary, This one is mine. - Scoot
"I suppose it is tempting, if the only tool you have is a hammer, to treat everything as if it were a nail." - Abraham Maslow 1966
https://rationalthinking.net/beware-your-dividend-bias/
Excerpt -
"In the stock market, it’s easy to fool yourself. Decision-making is all about making good or bad outcomes. We all fall prone to what Annie Duke calls resulting: we judge the quality of our decisions on the outcome, not the other way around. But you can have a good outcome despite a bad decision, and you can have a bad outcome even though the quality of your decision was good.
The same goes for Dividend Investing. We get lured by receiving tangible payments and we forget the opportunity cost of the capital distribution. Warren Buffett has never walked into his office just to focus his investments on one asset class or one style of investments. Why should he limit himself? It doesn’t make much sense to potentially exclude many good investments. Dividend investors get obsessed with “income” and ignore the many other very viable options". - Oddmund Groette
Sound reliable Portfolio construction takes years, and should encompass many forms of investment securities, correlated and uncorrelated. Opinions vary, This one is mine. - Scoot
"I suppose it is tempting, if the only tool you have is a hammer, to treat everything as if it were a nail." - Abraham Maslow 1966