The movie The Treasure of the Sierra Madre directed by John Huston and stared Humphrey Bogart is considered to be a very good movie to watch and learn something. The essence of the movie is Bogart’s character is working in Mexico but is not doing well, with income here and there. He makes a little money, hears about looking for gold and with 2 other people (one a prospector) goes looking for gold. After a long search, they find a vein in the hills and then gold fever begins. What will you do with your share? do you trust the others to ensure your share is safe? how much is enough? All these questions are age old questions and there is no correct answers – it depends on the individual. In the movie – one wanted a little to retire on; one want some to buy some land and be a farmer; and one want to live the leisure life in style. The movie has the characters react to gold fever on the way from the mine in the mountains to where they would exchange the gold for cash. Also along the way, bandits steal from the miners and this is the learning – the miners thinks the bandits are after his gold dust, the bandits are actually after more tangible items such as shoes, guns and animal pelts. The bandits do not realize the gold is more worth more than all the other things or they do not know the value of the dust and dismiss it. Where is the value you are looking for?

Linking to dividend paying stocks, once you have accumulated a little capital, then you have choices – you can spend it, save it or invest it. If you invest the capital in to a form which pays you a dividend, then you can have the best of all worlds. Over time the capital increases and the dividends can be spent, saved or reinvested, until you have what is enough for you. With dividend stocks, there is value that many will not see for they only see the short term, while dividend stock holders are looking at the long term.

There are more questions than answers, till the next time – to raising questions