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So many issues with this. If the doctor et al - the investing public - don’t own the dividend-paying companies, who will? If you say “a broader base of people”
by FredPret 5y ago
So many issues with this.
If the doctor et al - the investing public - don’t own the dividend-paying companies, who will? If you say “a broader base of people” I agree. If you say “the state”, I’d urge you to read some history books.
Ownership is an economic concept that is fundamentally misunderstood. It’s a skill you can be good at, and a good owner has a massive positive impact on society. It’s not a golden ticket to sit on your ass and switch off your brain like some others imply.
When you own something, you have to look out for everything that can go wrong with your property and have strategies in place to deal with it. You have to consider every possible use of it and decide on the one that adds the most value. You have to consider the long-term flow of resources needed for various projects and invest either your own or borrow someone else’s. You have to hire good managers and then manage them.
Owning something is a LOT of work if you do it right because you own the entire outcome, no matter what it is or who’s fault it is.
- pydry 5y ago>It's not a golden ticket to sit on your ass and switch off your brain Buy $5 mil in S&P and that's exactly what you can do. Comfortably. The fact that you can mix work with wealth and earn a higher return is proof of little more than you can mix work with wealth. If you have wealth that is.
- FredPret 5y agoIf an investment works well and is well known (S&P), it’ll only work for so long. The PE ratio’s in the 500 S&P co’s have been heading ever upward (https://www.multpl.com/shiller-pe https://www.multpl.com/shiller-pe) indicating some sort of self-reinforcing effect.
- pydry 5y ago70 years?
- FredPret 5y agoVery, very few investors have the vision and nerve to hold their money in one thing for 70 years through the ups and downs. In the case of the S&P500, this would have worked out, but in 99.9999% of other investments, you’d simply have ended with $0 (or less…) and high blood pressure. It is not obvious ahead of time what strategy will work best.