Basically, we put ourselves under stress depending on how we view things and situations. The economy moves in cycles. It always has and it probably always will. There are good times and there are bad times, but neither is going to last. They may go on for longer than you can ever image, but they do end.
If you invest, you are going to make investments mistakes. You are going to invest in a company that gets into trouble. You think a company is a wonderful investment, but it does not turn out to be true. This will happen. If you hold companies for the long term, the company is going to have good times and bad times. It will have problems at some point.
However, what really counts is how you do in the long term. In the long term, I have done well. Mostly, my decisions have panned out. I have basically done better than the TSX plus income. I have certainly had my share of problem companies. I have companies that cut or suspend their dividends. I have had companies that get into trouble and their share price drops like a stone. This life and it is going to happen.
I do not focus on stock prices, but on the ability of my companies to pay their divided and increase them. I am going to be wrong on some, but not the majority. I focus on how well I am doing over the long term, like the last 5 or 10 years, rather than this year or last year.
A definition of a bear market is when everyone gets worried about something at the same time. The problem could be recent or could have occurred months ago, sometimes even years. This is probably also why the small investor also panics and sells and loses. However, you might be less inclined to panic, if you ignore the gyrations of the market and focus on the ability of your companies to pay their dividends.
On my other blog I wrote yesterday about Supremex Inc (TSX-SXP, OTC-SUMXF) ... learn more. Next, I will write about Leon's Furniture Ltd (TSX-LNF, OTC-LEFUF) ... learn more on Friday, April 11, 2019 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
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