"The big money is not in the buying and selling, but in the waiting."
— Charlie Munger
Wealth is transferred from the impatient to the patient. We invest with a timeline of decades, not quarters.
We seek businesses with durable competitive advantages that can sustain high returns on capital.
Reinvesting dividends creates a feedback loop. Your capital works for you, then the interest works for you.
Einstein reportedly called compound interest the eighth wonder of the world. Use this tool to see how a consistent mix of Dividend Reinvestment and Capital Appreciation creates exponential wealth.
Final Portfolio Value
$2,000,000
*Note: Hypothetical returns. Past performance is not indicative of future results. Assumes dividends are reinvested.
Before analyzing spreadsheets, we analyze the business. We use a "checklist" approach inspired by Buffett and Munger to filter out 99% of opportunities. Only the highest quality businesses make the cut.
A durable competitive advantage that protects profits from competitors.
Buying a dollar for 50 cents. It provides a cushion against errors in calculation or bad luck.
Is management rational? Do they treat shareholders as partners? Do they have "skin in the game"?
Knowing what you don't know is more important than being brilliant. Stick to industries you understand deeply.
A consistently growing dividend is the sincerest form of financial strength. You can fake earnings, but you can't fake cash paid out.
The market is a manic-depressive business partner. Use his mood swings to your advantage; don't let him influence your judgment.
Data from the last 50 years reveals a startling truth: Companies that initiate and grow their dividends not only provide income but also outperform the broad market and non-dividend payers with lower volatility.
Paying a dividend forces management to be selective with capital projects.
Dividends that grow faster than CPI preserve purchasing power.
Find your balance between High Yield (Stability) and High Growth (Aggression).
"The classic Buffett blend. High quality dividend payers provide the cash to buy growth opportunities during market dips."