**Image by Carl Richards, Buck’s Blog at the NYT. Check out the blog for more simple yet powerful investment messages. Behavior dominates investor under performance. As the simple yet powerful chart above so nicely illustrates investor returns are lower than the very investment classes they are invested in regardless of Read more…
That dreaded time of year is fast approaching. Yep, tax time. As we barrel to that dreaded time I’d thought I’d touch on an often overlooked tool for investors, tax loss harvesting. Used appropriately, it can reduce the burden of capital gain taxes in retirement and also be a great Read more…
In my last post I described the commutative property for dividends, i.e. that a 3% div stock with a 2% growth rate is exactly the same as a 2% div stock with a 3% div growth rate. I showed that the commutative property only holds for investments in non-taxable accounts Read more…
I think I’ve made it pretty clear that dividend investing is the basis of my investment strategy. Why is that? Well, to summarize; dividends provide higher returns (see this post), dividends enhance returns during bear markets (see this post), dividends account for most of world wide stock market returns (see Read more…
In my first post on the magic dividend formula I discussed how to estimate forward returns using the formula. The formula only requires the estimation of one unknown variable which makes it very easy to use. Today I want to discuss a different form of the exact same formula and Read more…
What if I told you that there was a way to glimpse into the future? To somewhat accurately estimate the future returns on your investments? Well, with dividend investing there is a way. Its called the Gordon Growth Model or as I like to call it, the Magic Dividend Formula. Read more…
I’ve been meaning to put together an investment reading list for a while but it has proved to be more difficult than I first anticipated. Finally, I have one. This is part of the list for beginners. A lot of investors I talk to are surprised when I tell them Read more…