Three thing on investing???
Just For Thinking ....
Three thing about stocks:
One, Growth stocks: For the brave ones.
Two, Growth-dividend stocks: You can have the cakes and still eat them. (Uncle8888's recommendation)
Three, Income-dividend stocks: You really need that cash-flow?
Three more things you must really know:
One, Dividend: Your investment yield or can be your dose of pain-killer for sitting on paper losses.
Two, Dividend payout ratio or Retained Earning: The future with its uncertainty. This is where compounding return may happen and presenting you a chance laughing to the bank.
Three, Leverage: The double edged-sword providing leveraged yield or leveraged earning growth.
Growth Stock - Invest when one is young and with a smaller capital. The aim is to build wealth (higher risk)
ReplyDeleteGrowth-Dividend Stock - When the capital (investment & saving) become larger.
Income-Dividend - When one is near retiring age. By this time, one should have adequate investible amount to invest into Income stock for perpetual passive income for life, and left some legacy to love one.
CW,
ReplyDeleteI guess we are sama-sama although I call it Growth and Income investing in homage to John Neff.
Eh? Where does Value investing fit in?
I've always find it puzzling to have value, growth, and income separations. Who would buy a stock if they are not hoping for GROWTH in profits, dividends, and stock price?
Speculators!
DeleteHa! Ha!
ReplyDeleteIncome stock for passive perpetual income. i hope i can find them. Actually you can find some of them in SGX. But perpetual passive income? i wish as long as possible. Nothing stand still.
Genting perpetual bond, if it can last forever .....
Deletehaha...I mean "perpetual" passive income.
Delete