Wise words from great investors…
"Dividend increases are a sign that companies are comfortable their future profit will be resilient."
"Look to add quality, dividend-paying, blue chips when they become irrationally oversold and undervalued. That is how and when experienced investors create blue chip investment portfolios which serve them well throughout their entire lives with growth of capital and growth of dividend income. The process is called 'investing' as opposed to whatever the hype and hope of the moment is in style."
"The beauty of the high-quality, worldwide, non-cyclical approach is that it gives a good reward while being low-risk, simple, non-commission intensive, and exposed to few surprises. I have often recommended it to people who want to build a simple, sound portfolio and do not have the capital to go to investment counsel. It adapts well to a do-it-yourself approach, because there is no need for constant, high-quality security analysis to support it - which a management firm can provide, but often at a hefty price."
"Stocks are simple. All you do is buy shares in a great business for less than the business is intrinsically worth, with management of the highest integrity and ability. Then you own those shares forever."
"Twenty years in this business convinces me that any normal person using the customary three percent of the brain can pick stocks just as well, if not better, than the average Wall Street expert."
"Focus on 'value' stocks. Studies have shown that buying companies when they're cheap (when the market value of the company is only slightly higher than the value of the assets on its books) generates much greater returns than buying more expensive fast-growing 'growth' companies. Buffett seems to know this, because he routinely buys companies when they are unloved and their stocks are relatively cheap."
"There are no bad days in the market. When the market is down, you’ve got bargains, and it’s lovely to think of what you are buying at low prices. When the market is up, the bargains have gone, but you’re rich.”
“I also do not believe in buying companies that do not pay attractive dividends. Nobody can forecast the future. But it’s obvious that companies that have a strong uninterrupted record are more interesting than those that have not.”
"You can improve your investment safety by focusing on stocks with long histories of dividends. Dividends are more dependable than capital gains as a source of investment income."
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