I worked out when I was younger that if you are in debt you effectively spending your life working for others. I like the idea of being a lender than borrower of money and investing achieves that for me.
Euler wrote:No, especially if you get an income off the company your risk reduces with time not increases. I just focus on what an investment can and is likely to yield, with some caution thrown in, and then I just buy it when it falls in the realms of value.
I don't put much emphasis on recent results, I am more interested in the long term results and competitives.
Euler wrote:I bought McDonalds at $15 in 2003
Look at the price vs the earnings the company generated. I now yield 16% PA on the shares on the original purchase price in dividends. I have little reason to sell even if the price crashes or they get in trouble.
Euler wrote:When investing your strike rates is exceptionally high if you buy at sensible prices. The returns dwarf the odd mistake.
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