A Most Basic Investment Idea.
I hope this Idea of mine can bring encouragements to investment.
One thing about investment is definitely TIME and with time comes UNCERTAINTY.
We only pick up "business" we know and we can be "quite" sure it wont close door.
The important thing is what price we buy into and whether you have a cushion to give you back your principal amount.
How much is 5% dividend from a $20k investment?
$1000 * 20 years = $20k when we never reinvest the dividend. Yes. We are not even compounding here.
Did you take back your investment capital after 20 years?
After 20 years, is it free money?
What are the chances 20 years later the position did not appreciate?
Is all in our mindset and approach.
I hope this will benefit everyone here.