I'm a relatively early riser -- and I NEVER stop reading and listening to what's happening in the world. I knew today was going down hard - last night - when I checked what Asia was doing in their markets.
I gather KNOWLEDGE - I DO NOT stew about it. I didn't go to sleep last night with churning guts about the "money" I was going to lose in what I know is going to be a sea of red today. Rather - I went to bed thinking about which stocks I would start to pick away at with BUY orders. Perhaps a little more Apple under $100.... Altria (MO) which just raised it's dividends another 9%.... Seems people smoke no matter what (have to laugh at that sad as it is).
Here's the deal. If you own the very best of the best companies... they're still alive and well (maybe not big oil... which could catch a cold that could grow to pneumonia)...
With Altria's (MO) latest raise --- and THIS IS THE INVESTING 102 reason for posting today --- my yield on COST is 5.5% (cost is $41.33 divided into the current ANNUAL divided of $2.26... result is .05468 ..... move the decimal and that's 5.468%). THE ONLY REASON IT'S THAT HIGH ON MY COST??? BECAUSE I'M NOT SELLING AT EVERY LITTLE DIP IN THE MARKET. It's a LONG TERM hold... The company is good (all the companies I invest in are good!). I'm not in and out of the market - I'm NOT a trader - I'm an INVESTOR! When the market puts things on sale --- I try to take advantage of that. I "IMPROVE" my position when possible. There are companies I like that are on sale that I don't own.
My mindset is that no matter what I buy... it will go lower. I'm okay with that. It's like buying a rental house in a bad market -- you buy it - if you don't someone else will... and then you fix it up - rent it out - and EVENTUALLY you'll collect nice rents and the market will come back and you'll be the smartest guy in your office. : > )
I know most of you don't sit around with a pile of cash just waiting for a market correction. I get it. I'm trying to set you up for when you might some day. You need to have spent some TIME in the market - live thru it - LEARN FROM IT - and get your head wrapped around "it".... so when you CAN strike - you'll know what to do.
This thread is not your ultimate guide of buy this - sell that - move here... I'm trying to hand you THOUGHT PROCESSES... Ways to calculate things - ways to LOOK at things.
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