Boring, boring, boring. That’s how you might describe one of the best investments my kids will ever profit from. Back in 1990 my children’s grandparents bought them 50 shares of Disney common stock for around $500 per child. The kids received the dividend check each quarter and thought it was neat getting a little extra allowance every now and then. It was something they never gave much thought to. Now that boring Disney stock has grown to over $5,000 in value for each grandchild. Suddenly it’s not so boring anymore. No glitz, not even one of the best performing companies over that time span, but the results speak for themselves. It is always amazing how stock market tops attract so many investor dollars. Just when things are at their riskiest point flows of funds into stocks skyrockets. We convince ourselves that the part will last forever and we hate being left out. The flip side is the head scratcher of a down market, where no one wants to buy even though prices are marked down 10%, 25% or even 50% on rare occasions. If this were a department store the aisle would be overflowing with bargain hunters. Yet when it comes to investments no one wants to shop the markdown rack. If you are feeling confident you should stop and think deeply about why. If you are feeling scared, then it is likely time to go shopping. |
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