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But...and it's a big but...do you have the patience to wait years for the dividend to grow? Can you control your behaviour and resist buying 'story stocks' | But...and it's a big but...do you have the patience to wait years for the dividend to grow? Can you control your behaviour and resist buying 'story stocks' | ||
- | • **Time-Horizon Arbitrage** – We are heading into another long bear market. But don’t be concerned. The last long bear marker was in the 1970s. In 1984, luckily, I encountered dividend growth investing. The gentleman who wrote the letter to the editor of the Financial Times of Canada I happened to read, retired in 1968. His simple portfolio did unbelievably well all through the 1970s and into the eighties and beyond. Over the same period, the market did not do well. Warren Buffett did very well in that period too. From 1975 to 1982, Mr Buffett' | + | • **Time-Horizon Arbitrage** – We are heading into another long bear market. But don’t be concerned. The last long bear marker was in the 1970s. In 1984, luckily, I encountered dividend growth investing. The gentleman who wrote the letter to the editor of the Financial Times of Canada I happened to read, retired in 1968. His simple portfolio did unbelievably well all through the 1970s and into the eighties and beyond. Over the same period, the market did not do well. Warren Buffett did very well in that period too. From 1975 to 1982, Mr Buffett' |
♣ Contrast the above ideas with indexing: large portfolios with a fair number of losers (non-dividend payers and high yielders) and poor income growth. “The crux of your success”, Stephen Jarislowsky says, “will be to select leading companies and holding onto them for years.” Mr Jarislowsky held his Abbott Laboratories for over 50 years. | ♣ Contrast the above ideas with indexing: large portfolios with a fair number of losers (non-dividend payers and high yielders) and poor income growth. “The crux of your success”, Stephen Jarislowsky says, “will be to select leading companies and holding onto them for years.” Mr Jarislowsky held his Abbott Laboratories for over 50 years. | ||