- Letting your emotions take control of your money is definitely not a good idea.
- Understanding how companies make money, what the strategies look like, and learning how they find new ways of creating value is simply flabbergasting.
- A successful investor will make his/her investment decisions using a strong rationale based on various principles.
- This idea was discussed in more depth with members of my private investing community, Dividend Growth Rocks.
"If investing is entertaining, if you're having fun, you're probably not making any money. Good investing is boring." - George Soros
There is this belief that investing should not be entertaining. In fact, they say, it should be plain boring. This is probably related to the fact that you should not let your emotions get in the way when you use your money for a "greater purpose". After all, lots of excitement could also lead to a big depression when the fun is over. Letting your emotions take control of your money is definitely not a good idea. However, this doesn't mean you can't find fun and excitement within your investing strategy. Here's why I think dividend investing is so much fun.
Discovering New Businesses is an Adventure!
First, I must admit: I'm a passionate investor. Does this mean I get crazy and buy anything that is "about to become the next Apple?" Not at all. But if there is one thing I enjoy most about being an investor, it is discovering new businesses!
I'm fortunate to run this blog and Dividend Stocks Rock because both generate tons of emails and comments about potential great stocks. Many readers ask me my thoughts on various dividend growers. I'd say that most of them don't meet my investing criteria (as they are quite strict). They are not "bad investments" per se, but I don't get excited by them either.
From time to time, this communication also gives me the opportunity to discover a marvel. This is how I discovered Gentex (NASDAQ:GNTX), Andrew Peller (OTC:ADWPF) (ADW.A.TO), and CAE (NYSE:CAE) (CAE.TO), for example.
Even if I don't add each "suggestion" to my own portfolio, I find it fascinating to learn about new business models. Understanding how companies make money, what the strategies look like, and learning how they find new ways of creating value is simply flabbergasting. At dinner time, I often talk about the "new company" I learned about during the day and I find myself absorbed by it for a few hours. I guess, I just love learning new stuff!
Discovering how Disney (NYSE:DIS) makes exceptional acquisition deals (ESPN, Pixar, Marvel, Lucas Film, and Fox assets) and then transforms each piece of content into multiple streams of income is just pure magic. Understanding how a large and mature company such as Microsoft (NASDAQ:MSFT) pivoted their business model from paid software to paid subscriptions and opened one of the most prolific cloud services is fascinating.
Sylogist (OTC:SYZLF) (SYZ.V) is the most recent addition to my portfolio (more to come in my next dividend income update). If Sylogist weren't trading on the TSX venture, it would be part of the Canadian Dividend Aristocrats. In fact, it is the only stock on the TSX venture to show 8 consecutive dividend increases. Its past 5-year and 10-year dividend growth rates are impressive, and management also rewards shareholders with a few special dividends from time to time. What's not to like? Oh, did you ever wonder how such a small company can pay such a nice dividend? That's because there is no debt on the balance sheet!"
This article was written by The Dividend Guy. A well-known investment author on Seeking Alpha.
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