Anchors are dropped to keep a boat in one place.
Now that you know how the concept of an anchor works, we can move on.
When you buy a stock at $55, and a year or so later it’s at $95, it becomes psychologically difficult to buy more because you’re anchored to the $55 range.
Have you ever noticed that buying more stock below your average cost is much easier than buying above?
I think it’s because we feel our stock is now overvalued and want to buy it at the price we initially paid.
But here’s the thing- the intrinsic value of a business changes over time.
If a business grows and becomes more profitable, its value will increase.
And, because you’re smart, you know that the worse a business does, its value will decrease over time.
So, to break the habit of price anchoring, when we find our stock well above our average cost, we should also determine whether the business’s value has increased.
And if your answer is yes, then it becomes doubtful that we’ll see our cost basis again.
As Ben Graham famously said, “In the short run, the market is a voting machine, but in the long run, it is a weighing machine.”
The more time passes, the more likely the stock, a piece of an actual business, will reflect its intrinsic value range.
And the longer we wait, all we’ll end up doing is anchoring ourselves to missing out on owning more of a great business.
Anchors aweigh!
😁Special THANK YOU to the (6) people who responded to the last newsletter!!
Check out the portfolios and podcasts, or see what’s cooking on YouTube.
That said, let’s get to this week’s moves.
Dividends Received This Week ~$232.08
- Exxon-Mobil (XOM) | $41.80
- LyondellBasell (LYB) | $18.75
- Prudential Financial (PRU) | $41.60
- Mcdonald’s (MCD) | $16.70
- Chevron (CVX) | $24.45
- Agree Realty (ADC) | $1.48
- Realty Income (O) | $51.30
- Main St. Capital (MAIN) | $36.00
Dividends Received Year to Date~
$1,447.10
Stocks Bought (AVERAGE)
- 1 Johnson & Johnson (JNJ) | $157.95
- 3 Agree Realty (ADC) | $55.02
Notable Ex-Dividends This Week + SSD Score
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- 3/20 VICI Properties (VICI), 6.4% | 50BS
- 3/20 Philip Morris (PM), 5.52% | 64S
- 3/20 Broadcom (AVGO), 1.70% | 67S
- 3/21 British American Tobacco (BTI), 9.81% | 45BS
- 3/22 Altria (MO), 8.94% | 55BS
In case you missed it, there’s a DIVIDEND KING that I think is getting ready for a cut!
🎙️Podcasts You Should Check Out!🎙️
🤑 Barron’s Streetwise had on telecom analyst Peter Supino to give his bull case for AT&T (T) and a potential 30% stock price upside.
🎧 If you’re having a bad day, you MUST listen to the story of Scottish WW2 soldier Alistair Urquhart and what he endured over many years as a Japanese POW. Utterly insane barely begins to describe what this human being endured as told on the Founders podcast.
Investing Newsletters You Might Like
⭐Ryne Williams writes a free weekly dividend newsletter and creates multiple top-notch YouTube videos every week.
🤑Connor Von Ooyen used to build mobile games at Zynga and became obsessed with the stock market, so he built an AI tool to scour the internet for the best stock market ideas and news and summarize straight to your inbox. Check out The Yellowbrick Road newsletter!
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Random music video I enjoy and you might too!
🎵Peter Murphy – Cuts You Up🎵
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With that being said, have a WONDERFUL week and I’ll see you in the next one.
