There are endless theories and admonitions and opinions about what to do and when to do it. Buy Low Sell High. Buy when there is blood in the water. Bulls make money, bears make money, pigs (or hogs) get slaughtered. The four most dangerous words in investing are, it’s different this time. And so on and so forth.
So what is one to do?
It seems obvious that there is no one right answer. Everyone needs for forge their own path, even if it means deciding to get an advisor or buy a fund.
Yes Another Way
Everyone can choose the path right for them.
For reasons outlined in numerous posts here, I have chosen a particular method of investing. It allows me to sleep at night. It allows me to sit back and watch the turmoil, or jump in whenever I care to. I never worry about “getting it wrong.”
I never worry about getting it wrong because the path I have taken is my own choice.
Fear Of Missing
I contend that much is lost when investors look over their shoulders at others and compare. As it is said, comparison is the thief of joy. And acting out of FOMO is the worst form of comparison.
Time
As has been said many times before, Time In The Market Beats Timing The Market. So, for me, I decided to take the long view.
The determination to aim for income rather than buy-and-sell is what motivated me to invest for dividends. In general, I have reinvested most dividends, and have continued over many years. In addition, I have increased my share count in many holding by buying additional shares. As a result, most of my holdings have appreciated such they provide an increasing amount of income.
Not attempting to time the market for a dividend investor means continuing investing and reinvesting regardless of external conditions.
Keep On Keeping On
Which means that I do not pause or stop some activities. In most cases, I continue reinvesting dividends regardless of economic conditions. I do not stop or pause my dollar cost averaging. Truth be told, I periodically change which companies I invest in with dollar cost averaging, but I don’t stop it. My belief is that economic conditions come and go, but my determination to invest and be invested does not end.
What Will Happen
I have no idea what will happen today or tomorrow or ever on economic conditions. Nobody knows. Short of a total financial collapse, my investing will pay off. I don’t need to know the future of stocks to know that having dividend income is a good thing. My 25 years of serious dividend investing shows me that stock prices go up and down, talking heads scream about whatever is on their minds and that the sky will be falling soon in their view, but it means almost nothing because my view is clear: dividends for income is a simple and easy way to provide for oneself.
Go clarity? Let me know here.
Illustrated is twelve paintings of proverbs on roundels by Bruegel the Elder in 1588. Courtesy Wikimedia Commons.
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