2D
I did it, I read the text from beginning to end! 💪
Basically, I agree with you that there are many simplifications and misconceptions about equity investing that are rarely reflected as such. Two pointers for further thought:
1. you describe the phenomenon of misconceptions. But that doesn't explain it. Why do you think people believe that dividends are freemoney, etc.?
2. the misconceptions go much further and deeper, right into finance. Why do you think it is a mantra that the private investor should be satisfied with the 6%pa of Sparplan B&H WeltETF?
Basically, I agree with you that there are many simplifications and misconceptions about equity investing that are rarely reflected as such. Two pointers for further thought:
1. you describe the phenomenon of misconceptions. But that doesn't explain it. Why do you think people believe that dividends are freemoney, etc.?
2. the misconceptions go much further and deeper, right into finance. Why do you think it is a mantra that the private investor should be satisfied with the 6%pa of Sparplan B&H WeltETF?
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@Epi YouTube Grifter comes to mind as a reason. Or simply a lack of understanding of what dividends are, because the deduction from the share is covered up by growth and reinvestment. As long as you reinvest, it's only tax and trading fees that you lose.
2. risk management. Buy and Hold World ETF is a stable option. The mantra of managed funds is much worse, you feed others with it.
2. risk management. Buy and Hold World ETF is a stable option. The mantra of managed funds is much worse, you feed others with it.
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2D
@Madhatter5566 I don't think it's that simple! 😏
1. there are a lot of dividend investors who are well aware of the dividend discount and stick with it despite the costs. "Because it makes them feel more comfortable and keeps them motivated." Please explain that!
2. worldETF may be better than active funds, but it is by no means stable. What is stable about a measly 6%pa at 60% max drawdown? You're probably still stuck in a suboptimal, expensive mindset, similar to the dividend hunters. 😅
So: first pull the beam out of your own eye... 😉
1. there are a lot of dividend investors who are well aware of the dividend discount and stick with it despite the costs. "Because it makes them feel more comfortable and keeps them motivated." Please explain that!
2. worldETF may be better than active funds, but it is by no means stable. What is stable about a measly 6%pa at 60% max drawdown? You're probably still stuck in a suboptimal, expensive mindset, similar to the dividend hunters. 😅
So: first pull the beam out of your own eye... 😉
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@Epi 1. um, I mentioned the motivation. I wasn't talking in detail about deinvesting or using dividends, but about thinking that somehow more money will come in or that it's free money. And that's where some of it came in immediately.
2. my mindset? The stock market makes up 10-15% of my portfolio. Lol. I only see a few "non-expensive or risky" other strategies. The backtested strategies with less drawdown and better returns all mean active management on my part. Can you really sell that to a lazy 0815 person?
2. my mindset? The stock market makes up 10-15% of my portfolio. Lol. I only see a few "non-expensive or risky" other strategies. The backtested strategies with less drawdown and better returns all mean active management on my part. Can you really sell that to a lazy 0815 person?
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