I Eat Bear

I would advocate NOT.

In GOOD, times, yes maybe,,, bigger is better. In bad times, that would be debatable.
Yes, they TREND, to have a sustainable dividend, in many cases, BUT, they also have the slower growth. They tend to be SLUGISH.

Now, YOU will have to decide, your tolerance for RISK.Yes, safe may make you money,, today,,, or for fifteen minutes, depending on your time scale for investment. BUT, if you are a PRUDENT investor, you have to see the long term. Growth, is not likely to be there. In dividends, or stock appreciation. OK, I am with you. Historically, dividends do make up for stock price appreciation. In NORMAL times, I would agree with with you. Problem is, theses are not NORMAL times.

First rule of investment, is pick survivors. High or even close to high dividend stocks do offer HOPE. But, that is all they offer. For the LONG TERM investor, I would STILL, recommend a growth stock. Now, the definition of a GROWTH stock will vary. Some will make a growth stock as one with a dividend, less than one percent per year. WRONG.!!!. A growth stock,, is a stock, that BELIEVES, that it's stock price appreciation will EXCEED the current maket value for money. AND, can produce results, that will match that expectation.

So, as I watch the MEDIA, recommend, "Oh, be very afraid, and protect yourself, with dividend stocks", well, first, they are right. About 20% right. Yes, you do want dividends, especially in the TRYING economic times we have now. And, why do they recommend those? They may be the EASIEST, to find.

But, I submit to you, you can do FAR, FAR better, to pick some GROWTH stocks, if you are an INVESTOR. Now, let me define INVESTOR.

An INVESTOR, can, and will WAIT, They buy cheap, and sell high. ALMOST ALWAYS, it will be LATER. So, if you have a less than two to three year time frame, you will NEVER be an INVESTOR. Does that mean you can't make money?

Fotunately,, NO. But, it does mean, you can't keep it. Short term gains, are almost assuredly to be met with short term losses. Some of them will be BIG. No, I am not saying you can not get in, make a ton of money and get out. Some do. I will say, MOST do not.

The GAMBLERS, in the market, tend to be just that. GAMBLERS. And, if you know anything at all about GAMBLERS, they get rich quick, and lose it ALL, and more,, the next day,, or some day soon after.

Confessions of the soul here folks. As a REFORMED alcoholic, and GAMBLER (and one of the top 20 in the country),, that is NOT a LIFESYLE, for MOST of you. Yet AMAZINGLY ENOUGH, YOU all BELIEVE you CAN. Let me tell you FACTUALLY, most of you can't. And I have profited from that, and I am SORRY,,, sort of.

I can. I have been blessed. Then again, I have CHOSEN , not to. At least, not to any more.

NOW, I prefer to help people. And, the best ADVICE I CAN GIVE, is to INVEST,, in YOUR future.

God willing, you will have one!

Poor planning on your part, is a POOR excuse!

Making money,,, is SOOOOO very easy,,,,, and ALSO ,, so very HARD.

But, you can, without the personal sacrifes of a GAMBLER.

You need to invest, and do so with some RISK. That is the way to EXTREME riches. Then you need to understand,,,,,,,,, What you would do if you had that.

Most of you,, would not want it if if was DUMPED, in your lap.

Then again,, PART of it, would not be all bad.

Your PART, is easy enough to do.

INVEST,,,,, and BELIEVE,,, there will be, a tomorrow.

The rest, will take care of itself.

BUT, I do offer this advice. Be willing to WAIT.

Good things happen to those who WAIT.

I don't know why. It just happens that way.

And, when it comes to a stock market,,,,, that is ESPECIALLY true!!!!

Lose a little and shed a tear. Win, and it could change your life,,,,,,, for the REST OF YOUR LIFE.

After that,,, is up to YOU.

Comments: View Comments |  Wednesday December 31, 2008