http://neuropolitics.org/defaultapr09.asp
http://www.schoolofthinking.org/what-is-your-dangerous-idea/tit-is-coming-the-shadow-of-the-future/
Keep INVESTING Simple and Safe (KISS) ****Investment Philosophy, Strategy and various Valuation Methods**** The same forces that bring risk into investing in the stock market also make possible the large gains many investors enjoy. It’s true that the fluctuations in the market make for losses as well as gains but if you have a proven strategy and stick with it over the long term you will be a winner!****Warren Buffett: Rule No. 1 - Never lose money. Rule No. 2 - Never forget Rule No. 1.
Commentary on Chapter 19
Zweig offers up one nugget that really caught my attention. From page 506:
Research by money managers Robert Arnott and Clifford Asness found that when current dividends are low, future corporate earnings also turn out to be low. And when current dividends are high, so are future earnings. Over 10-year periods, the average rate of earnings growth was 3.9 points greater when dividends were high than when they were low.
What does that mean? Good, strong companies can afford to pay out dividends. Thus, to an extent, a company paying solid dividends - particularly over a lot of years - is likely a company that’s on very solid footing and sure of their future.
Companies that pay good dividends don’t need to hoard money. They don’t need to invest in themselves. Instead, they’re able to provide direct value to their stockholders.
It’s a pretty good argument for value stocks, I must say.