Every month, I will post my personal net worth.
December was a very busy month as every month seems to have been since starting my own version of the dividend machine. My takeaway this year besides to never count your chickens before they hatch is.. Patience Pays. I know many folks who liquidated their portfolios with hopes that the market would drop 50%. It didn’t happen. Instead the DOW this past Friday was fractions away from hitting the historic 20K mark. Many other indices are hitting records as well. In my eyes, nothing beats time in the market. NOTHING! Buy a long term bull while it’s a short term bear, if your position fails to deliver, sit back and wait. While sitting back and waiting, the DRIP will grab shares at a lower price, which reduces the cost basis. This let’s time heal itself and eventually things will turn back in the positions favor. This works especially if you are dollar cost averaging below your cost at the same time.
I love the markets. I always have and always will. I just never had the patience to stay in for a long time. My generation also makes it very difficult in that all they want to do is project their life onto social media. Going out to bars and clubs spending most of their earnings in a single weekend. I look sometimes at their posts and wonder what are their plans for the future? Do they want to work like their parents did until their late 50’s early 60’s? Are they looking to inherit all of the property that their parents worked decades for? And if so, without a work ethic, how will the inheritance continue to thrive? These are the questions that come into mind when seeing what my generation is projecting to the world.
My generation is living the retired life without being retired. I would rather optimize my time NOW and let it pay dividends (pun intended) in the future. Don’t get me wrong, I enjoy life daily, but not to the extend that most take it. I guess this is why the older generation says “Youth is spoiled on the young.” George Bernard Shaw must’ve known the principles of value investing (TIME AND COMPOUNDING).
He also once said:
“The people who get on in this world are the people who get up and look for the circumstances they want and if they can’t find them, make them.”
As well as:
“If all the economists in the world were laid end to end, they still wouldn’t reach a conclusion.”
“Take care to get what you like or you will be forced to like what you get.”
Profound sayings from an intelligent man.
In conclusion, this year was full of ups and full of downs, but overall the energy ends and begins now in the positive territory, and that is all that matters. I wake up with a sense of relief knowing that I am finally growing, not just in a monetary sense, but personally as well.
Wishing everyone reading this a happy and healthy 2017! Let this year be better than the last.