Mr Budget recently came across a thread on Quora which is quite interesting – What is the wisest financial advise you have heard from a rich person.
According to Mr Wonderful, one of the sharks of Shark Tank, he follows a few investing rules:
If a company has no cash-flow, don’t invest! A company without cash-flow is valueless and nothing more than a speculation. Never buy a stock that doesn’t pay a dividendHe adds on further by explaining his investing rule with proper stats: “Over the last 40 years, 71% of the stock market’s return came from dividends, not capital appreciation”
“Don’t wait for the stock price to go up, get a check every other month and take your share of profits. I’ll never own a stock that doesn’t pay a dividend,” ~ Mr. Wonderful.
I think this is a very good yard stick that I will
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