When I started investing, one big mistake early on was thinking I had to “keep trading” to make more money.
I was stubborn as an ox.
I believed I could win big by doing frequent trades – chasing a few huge gains, riding through lots of volatility, and lots of churn in my portfolio. But it was tiring.
My spreadsheet would show big gains every now and then. But after factoring those inevitable losses – trades that didn’t work out – I realized my total returns weren’t worth the risk taking and huge amount of time spent.
It was tiring.
I thought picking good stocks alone was enough. But what I learnt is it also matters to let high-quality companies compound for dividends.
Why dividend growth investing?
One of my biggest stock positions in my Dividend Grower Portfolio is Taiwan Semiconductor Manufacturing Company (TSMC). TSMC dominates a niche as a “pure-play” foundry.
It does nothing but produce the smallest microchips for some...