2Yr·

When the stock market doesn't behave the way you'd like it to....

Since I like to buy shares of companies which I like to use myself, I have $WDFC (-0.9%) on my watchlist for a long time. Today was ex-day and I was planning to finally get this little dividend pearl with a nice "dip" from dividend discount and sell-offs to 2% dividend yield in the depot. 2% isn't a hoot but the dividends are rising regularly and I'm investing for the loooong term.

What happens? The share price goes up! 😬


Now it's back to waiting and quoting the great Buffet:

"The successful investor has a great deal of patience, he buys far below fair value and sells far above fair value."

5
5 Comments

profile image
So on the basis of your own use, there should really be no argument to buy a share.
3
@Daniele5991 eh? So I've often heard that you should prefer stocks that you know (not necessarily use). I'm not a stock professional, so it would be difficult for me to invest in American insurance companies, for example, because I can't do anything with them.
But I also prefer Coca Cola rather than PepsiCo, for example, although I know that Pepsi is more promising and has a broader base. And I also think that a lot of people tend to go for stocks that they know rather than just reading a few figures and thinking they know the company.
1
profile image
@AlexHaubi No, you shouldn't do that because if you like a brand, it's your opinion that counts and not whether the company is good or bad. As we all know, feelings and emotions have no place on the stock market, which of course includes products that I like myself, regardless of whether the company behind them is good or bad.
I mean that I like Mercedes, but that is not a decision for me when it comes to investing money. Of course, it works the other way around too, many people avoid defense companies like Rheinmetall, but it brings more returns.
4
@Daniele5991 Yes, I understand that aspect. Of course, you shouldn't let yourself be led by your feelings. But for me it's more about knowing the company in general than whether I like it or not. So I prefer a company like Diageo, even though I don't drink alcohol myself, to semiconductor companies, for example. (I know extremely hyped shares, but I honestly have zero blink on the market😅)
profile image
@AlexHaubi Of course, it's understandable that you'd rather buy what you know a bit about. Put your money where your mouth is is what they like to say 😂
1
Join the conversation