I feel stupid as an investor
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Hey, Willie here! Sometimes, I feel stupid as an investor. When I accumulate shares of a company, the prices more often will dip more after. In hindsight, it looked as if I bought my shares too early. Sure, I could have bought at a lower price today, but the thing is: no one could ever "pick the market bottom". And I don’t regret my decisions after I buy my shares. Why? I know the potential value of these companies. I know when not to overpay for them. The thing is, I can’t predict whether the stock market is going up or down... I can’t predict the Fed’s decision or the government 's future policies... Heck, I wouldn’t know how high or low oil prices could go. But I do know of a high potential opportunity when I see one. The problem is, we aren't naturally wired to handle markets up and down well and long enough to see our stocks go up. And it’s normal. Markets bump along from week to week, month to month, year to year. It’s part of investing. What’s crucial is focusing on picking the right business, paying the right price and focusing on the long-term. I see myself as a business owner. And unless businesses I invest in get worse, or if there's a way better business opportunity elsewhere, I'm sticking to my positions. What's crucial is to create your own pockets of order. Stick to a strategy you know. And remain convicted. Sometimes, holding on to great businesses (like what Warren Buffett and Charlie Munger do) – without focusing on short-term price movements – makes a lot more sense. Here's the thing: to accumulate wealth in the long run, we must have the conviction our portfolio will continue to grow. For now, I love to share some of my favourite articles for November:
Sometimes, investing can be simple. Willie Keng, CFA Founder, dividendtitan.com P.S. Like this issue? Click HERE to join other dividend investors reading my DT Compound Letter. I send my regular letters to your inbox. |
Dividend Titan
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CapitaLand Ascendas REIT is now trading ~6% dividend yield. What's more recently, Ascendas REIT announced its equity offering to acquire three properties worth ~S$1.4 billion. This is ~10% of its market cap. The deal could further raise the REIT’s DPU by 4%. Not too bad. Not too bad. You’ll expect Mr. Market reacted positively but instead shares went no where after the announcement. So what’s missing here? And is it worth buying today? Let's dive in. Sometimes, investing can be simple. Willie...