Similar to many people, during the winter going to a gym or a pool is part of the normal routine. It is good for health and given the weather outside, it seems easier to do. On arrival at the gym, there is a need to change clothing. 95% of the time, my feet go towards the same locker even though there is no lock on 95% of the lockers for they are day use only. Out of the 80 lockers, all of the same size, most the same distance from the bench and all of them having 3 hooks. my feet lead me to the same number was being used. After a time, it is noticed the other people tend to go towards the same locker in a similar fashion that I do. If an analysis is done, my actions are not much different than most participants.
Linking to dividend paying stocks, we are creatures of habit and likely you have heard that expression many times over. There maybe a practical reason why we do something in the first place, but by the third time the rational aspect begins to disappear and the habit begins to come in. The big question is how do you ensure you have good habits in the first place, for most of us are not rational human beings. One method is to invest in profitable companies. If you start with profitable companies that means you tend to stay away from unprofitable companies which have a great possible story but no sales or too much debt. If you start with that premise then you will keep more of your money.
There are more questions than answers, till the next time – to raising questions.