This is a new category just introduced in the Journal, here I will write mostly about: Money, Markets, Stocks, Businesses, Analysis and Strategies.
In some way I have always been attached to money management since my childhood. In contrast with many of my close friends, I have been eager to save instead of spending, and it doesn't come as a surprise either that my favourite board game was Monopoly (along with other managerial PC games like Sid Meier's Railroads!, Zoo Tycoon and SimCity).
It seems a good starting point, and indeed it was, but unfortunately I got in touch with the stock market, the investments topics, the power of dividends and the biggest force of the entire universe (compound interest) only recently (mid 2018).
And yes, I totally missed the dot-com and the financial crisis, losing along the way their Christmas bags full of bargains and high quality businesses trading at insanely low multiples and delivering stable and safe dividends starting from a 4% yield!
Let's have a closer look at some delicious examples from 2009: Coca-Cola was trading at 14.5$ delivering almost a 4% yield (in the meantime its dividends continued to go up, and the price tripled to 48$ as time of writing), AT&T was trading at 14$ with a ~7% yield (in the meantime the price has more than doubled), McDonald's was trading at 44$, yielding more than 4% (its price has increased five FIVE fold by now, with a current yield in the low 2%).
McDonald's with a 4% yield was an absolute steal, you should have sold all your property to buy as much of McDonald's stocks as you could have afforded to.
If you bought AT&T in 2009 at 14$, you would now be entitled to get a dividend per share of slightly more that 2$, with a yield on cost of more than 14%, and we are excluding the capital appreciation of more than 100% dividend reinvestment excluded!
A 14% yield means that even if it doesn't grow and you don't reinvest it, your will have all your buy cost covered in just 7 years.
I highly regret all the years I lost outside of the markets, buried by my financial ignorance, but you know... the best time to plant a tree was 20 years ago, the second best time is now.
So I started studying, reading (a lot), trying things on my own, looking for every valuable financial blog or website (more on this
cominghere ), and taking a close look at the financial markets' moves.
At times also working on side projects designed to re-arrange financial data from different free sources in ways I prefer.
As time of writing (early 2019), the market has kept going higher, totaling more than 10 years of pretty constant rise in one of the longest bull market ever. It has only experienced a small drawback with a peak of nearly -20% near the end of December 2018, quickly erasing those losses in the first few months of 2019.
Time to sell everything and sit on cash? I don't hide that these high levels are a bit scary and finding good deals is an harder work compared to 2009, but honestly, nobody knows. Time in the market beats timing the market (unless you are one of the top 0.0001%
genius lucky people this planet have ever welcomed).
For updates, insights or suggestions, feel free to post a comment below!
All the information and data expressed in this essay are for informational purposes only and are not to be intended as a financial advice. They may be or prove wrong, with the real possibility of capital and money loss, use them at your own risk.