SERIES: BEGINNER INVESTING
I Invest Like a Dragon; the Simple Math I Use Can Help You, Too
Smaug’s gold hoard was inspirational.
Disclaimer: I am not a professional financial advisor, and what I say to you here is not intended to be taken as professional financial advice. I’m an ordinary individual investor who has invested in dividend stocks with reasonable success for over 30 years. If you need real financial advice, please find a fiduciary in your area.
Buy and Hold Investing
When I saw the dragon’s immense hoard of gold in The Desolation of Smaug, I had to giggle softly to myself. Yep, yep, that’s my investing goal! Keep on with it, Smaug! Good dragon!
I don’t think I’m a greedy person; I certainly hope I’m not. But that scene confirmed my personal investing philosophy. It even inspired a short story that got published in a young-adult fantasy anthology.
I don’t know how Smaug acquired all of his gold, but I know how I did — through buy-and-hold stock investing.
Buy and hold means that, when you buy shares of dividend-paying stock in a company with reliable cash flow over the past five or so years and low debt, you hang onto your shares and don’t necessarily sell them when the share price increases. Some people…