21 Comments
User's avatar
Robert Sturgeon's avatar

This is brilliant...Thanks!

Regarding point 5....Thoughts on Nvidia?

Compounding Quality's avatar

Nvidia is not my cup of tea. :)

Andrei Zinkevich's avatar

You publish my favorite investment newsletter now

Compounding Quality's avatar

It's a true honor to have you, Andrei!

Herman Naulaerts's avatar

👌

Compounding Quality's avatar

I appreciate you, Herman!

Jaydeep Shah's avatar

Love it! Curious to know why is Netflix shown in Red?

Compounding Quality's avatar

The data are taken at the end of 2022. Netflix was down heavily back then

daniel rocha's avatar

Great summary in images

Rancho's avatar

Thanks!!

OnlyQuants - AlgoTrading's avatar

Very good article, it is like the basics of the gym but in the investment.

Compounding Quality's avatar

Love the gym analogy!

Nipples Ultra's avatar

Another great feature of tax-advantaged is to buy stocks by writing puts- if you buy the stock, fine, if you don't you still have the income. It's a great way to immunize against FOMO: "I do not mind owning this stock, but I'm happy whether or not the PUT is exercised against me".

Manuel Lobo's avatar

Muy interesante y didáctico

The Simple Side's avatar

I’ve always said invest in dividend stocks in tax advantaged accounts

obagi's avatar

The important thing is to invest, doing so in dividend companies can be as good as investing in companies whose name begins with a vowel, it is not decisive. The dividend is only an allocation of capital, therefore the important thing is that the company makes the best allocation of capital, whether via dividend or another form. But if it serves as a placebo, it is welcome.

The Simple Side's avatar

For sure. The point I am making is in reference to how your dividend returns get taxed and therefore lead to diminishing returns unless in a tax advantaged account!

Compounding Quality's avatar

You can write some more interesting stuff about dividend investing here: https://compoundingdividends.substack.com/