The mirage of stock prices...

As previously hinted in my last blog, stock prices are not really that important when it comes to long term wealth. In fact, as long as it remains active on the exchange and is one of the top dividend payouts around, stock prices should be irrelevant to you. Because if you don't intend to buy or sell, stock price has no difference to your true wealth. Buying low and selling high is fun... but not as much fun to me as logging in and seeing my spending account up again. So because I’m always buying (always investing), I am looking for a bargain... but never forgetting the cost of waiting as well, the dividend payout of an investment can surpass the difference of paying too much for a stock.
Besides, you are buying the stock to have a share in the dividend anyways, right? And if the dividends are really good, then you would not want to sell right?


Now there is a natural positive cycle with this theory which ads ammo to my peaceful consciousness... and that’s by the time your investment begins to pay lower dividends due to higher amounts of shareholders buying into the same person, the price of that stock naturally rises, leaving you with not only a profit on the capital, but all those great dividends you have been investing...


It’s all about the dividends... don’t let stock prices fool you.