Reinvest Your Dividends

If you find yourself in a position where you have time and financial security then good job. You're doing something right. Also, investing some of that extra money is a well managed company with a consistent dividend payment it could behoove you. Even better would be to find a company that allows you to reinvest the dividend immediately into more shares. My grandpa sent me a book that speaks on it and, though the book outdated, provides some very valid arguments for reinvesting dividends.


My strongest take-aways regarding the positives of the reinvestment the purchase of shares automatically dollar cost averages for you. Also, there is a pretty good case of making more money* than just receiving the cash dividends and doing it yourself or just keeping it.

Buy Low, Sell High

The most basic and well known investing phrase. It seems so simple. You want to buy the stuff at the low point and sell at the high point so you can cement your returns and make money. It's basic and makes sense. Ya know, the goal of investing.

The problem is that most people aren't exceptional investors.

Part 3: True Costs of Trading

As stated in the book "Investment Philosophies" by: Aswath Damodaran (recommend), there are three main sources that contribute to trading costs. 
1. The bid-ask spread
2. The price impact
3. The opportunity cost of waiting

the source of the following information is from the book listed above. 

Part 2: True Costs of Trading

As stated in the book "Investment Philosophies" by: Aswath Damodaran (recommend), there are three main sources that contribute to trading costs. 
1. The bid-ask spread
2. The price impact
3. The opportunity cost of waiting. 

the source of the following information is from the book listed above. 

Part 1: True Costs of Trading

This blog is meant to provide you with more information on trading costs. Most retail investors don't understand what goes into trading costs. When I first started, the only cost to me was the commission set by the broker to buy the number of shares. $4.95. This is the only cost you'll explicitly pay, but there are more that come up over time. The more I do this and the more I learn, the more I realize how uninformed I really was.

Active vs. Robo Advisors

Almost everyone at some point has worried about money. Where to get it, what to do with it when you have it, how not to lose all of it. The basics. For most people, they don't know enough about the stock market or economics to feel comfortable investing their money on their own, so they turn to money managers. This is where you can get ripped off by the smaller money institutions wit loaded funds and high expense ratios. With the bigger firms there is more to be offered for much less. Below we'll get into what active investing is and the alternative to it if you like it but can't do it yourself. Then we'll try and scrape the surface on the recent financial innovation in robo advisors.

Enjoy the read.