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Originally Posted by SSLance
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It's a good article and I like the honesty of it. WE ALL HAVE DOUBTS and we all sometime worry about whether or not what we're doing is right. Here's where I personally sit. Everyone needs to take a longer term perspective. This is why I preach DIVIDENDS and being paid to wait - as long as you're in the best of the best. Because if you're reinvesting those dividends -- then they'll be buying more shares when the market does take a dive. That's EXACTLY WHAT YOU WANT. More share paying dividends buying more shares.... that's the power of compounding.
If Warren Buffet sold his Coke (KO) shares every time he was worried about this or that --- then he wouldn't be getting that dividend that is now larger or equal to what his original investment was.
Everything goes up and down -- the key is what your reaction is to that. Nature has us buying when prices and things are high - and we sell when they're low... the key to the whole investing thing is to stop doing that --- and buy when things SUCK.
The problem is -- we never know when those things are going to occur. I've learned over time - to just let the great law of averages make me a winner - and the law of market averages tells me that over the LONG RUN I'll be fine. In the meantime I spend my dividends and I don't worry much about what the market is going to or not going to do 'cause I've never been able to figure it out.
I never thought once about the market as I watched a GTR run 237MPH or a Bugatti run 246 today.... 'cause I know I'll get my dividends whenever they're paid.