Gyroscopic Investing

https://cuffelinks.com.au/50-years-finally-ahead/


"This is a sobering reminder of the destructive effect of inflation, and also a reminder not to get caught up in boom-time media frenzies that lure people in at the worst time. ‘Buy and hold’, ‘set and forget’ only works if you have 50 years to wait to get your money back."

Comments?

I'm not sure about the rest of the analysis, but the blithe dismissal of dividends seems pretty foolish.

Xan wrote: ↑Tue Jul 23, 2019 8:43 pm I'm not sure about the rest of the analysis, but the blithe dismissal of dividends seems pretty foolish.

Yep. The point about real returns is totally valid, but they lost me at this quote: "Dividends add to returns, of course, but we want to see the real capital value of shares, or real wealth, rising not falling."

Dividends are simply forced distribution of capital value on a regular schedule. So it might as well be an article complaining about how savings accounts refuse to grow while stubbornly ignoring every withdrawal.

Plus Australia is just hella volatile.