- Joined
- Sep 25, 2007
- Messages
- 201
Hi all,
An article from today`s issue of the Globe and Mail (Globe Investor). Excerpts:
"In turbulent times like these, it helps to have someone to lean on. Someone older, wiser and more experienced in investing matters.
It helps me stay focused on the long term, instead of getting freaked out by day-to-day market gyrations caused by hedge funds, short sellers and other deep-pocketed investors against whom I`m hopelessly mismatched.
"The mistake that people make in investing is looking at stocks the way they might look at baseball teams or horses and not looking at them as investments," he says. "Everybody is constantly looking at their account value to see if they`re winning the race or not."
A better approach, he says, is to think of your portfolio as an apartment building full of units (stocks) that pay you rent (dividends). If you buy stocks that increase their dividends every year, your stream of rental income will grow. And if you reinvest your dividends in more shares, you`ll have more apartment units paying you more rent, which in turn will buy more units, and so on.
So if you want to free yourself from market tyranny, turn off the ticker and focus on how much cash your portfolio is throwing off every quarter.
"It`s hard. You have to take a deep breath. You have to focus on the fact that it`s a compounding process and you`re in it for the income, and as the income grows, the value of your asset grows," he says.
"Have faith and believe and don`t waver. That`s the key to the whole thing," he says.
Or as Don would say, "Microscope versus telescope."
http://www.theglobeandmail.com/servlet/sto...ery=john+heinzl
Keith
An article from today`s issue of the Globe and Mail (Globe Investor). Excerpts:
"In turbulent times like these, it helps to have someone to lean on. Someone older, wiser and more experienced in investing matters.
It helps me stay focused on the long term, instead of getting freaked out by day-to-day market gyrations caused by hedge funds, short sellers and other deep-pocketed investors against whom I`m hopelessly mismatched.
"The mistake that people make in investing is looking at stocks the way they might look at baseball teams or horses and not looking at them as investments," he says. "Everybody is constantly looking at their account value to see if they`re winning the race or not."
A better approach, he says, is to think of your portfolio as an apartment building full of units (stocks) that pay you rent (dividends). If you buy stocks that increase their dividends every year, your stream of rental income will grow. And if you reinvest your dividends in more shares, you`ll have more apartment units paying you more rent, which in turn will buy more units, and so on.
So if you want to free yourself from market tyranny, turn off the ticker and focus on how much cash your portfolio is throwing off every quarter.
"It`s hard. You have to take a deep breath. You have to focus on the fact that it`s a compounding process and you`re in it for the income, and as the income grows, the value of your asset grows," he says.
"Have faith and believe and don`t waver. That`s the key to the whole thing," he says.
Or as Don would say, "Microscope versus telescope."
http://www.theglobeandmail.com/servlet/sto...ery=john+heinzl
Keith