In the newspaper which the writer reads, every week there is a car section and not being in the car market it is saved for looking through later. Two articles which catch the eye are a discussion of what car should I buy? and a personality talking about their cars. Most people once their have regular form of income, a car is high on their list of needs. If you think back to your first car, was in the make and model which is your ideal car? For most of us the answer is no, if you are remotely similar to the writer’s first car was my Dad’s old car. The price was right – pay for gas and maintenance. The next car was smaller and sportier – more in keeping with my age at the time.
Linking to dividend producing stocks, it is likely these were not the first stocks you bought, Originally you wanted something to make you wealthier overnight, it may have happened. Over time you have moved towards dividend producing stocks because many have produced total returns which you were originally looking for. It is okay to change, we all learn, we all have lessons from the past. In investing, the best results are made over the long term in stocks that pay dividends and have a dominate market share which they can maintain consistent earnings or in other words a near monopoly like conditions. Either there are great barriers to entry, government regulations maintain the status quo, or the buyers consistently want products the company sells for those products have changed over time to match their buyers needs.
There are more questions than answers, till the next time – to raising questions.