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Boring. The word is boring. Boring companies whose stock prices do nothing for 30 years but gently drift up and down with the market (or not), steadily yielding
by erpellan 7y ago
Boring. The word is boring. Boring companies whose stock prices do nothing for 30 years but gently drift up and down with the market (or not), steadily yielding 5% dividends year after year. Usually they sell things like toilet paper, soap, electricity or other boring everyday things. When it comes to long term investing, boring is good.
- conistonwater 7y agoThis analysis is definitely wrong, it's discussed in textbooks too. You need to seriously, properly consider the risk of the investment, and if your model of the stock price is that it gently drifts with the market while yielding 5%, then that's just wishful thinking on your part.
- speedplane 7y ago> Boring companies whose stock prices do nothing for 30 years but gently drift up and down with the market (or not), steadily yielding 5% dividends year after year. ... When it comes to long term investing, boring is good. The S&P 500 has pretty consistently had yields of 10-15% over the last 100 years. It makes more sense to invest in a "boring" ETF that follows the market making 10% than a "boring" stock that yields 5%.