Despite the following impressive statistics, equity exchange traded funds have disadvantages. Assets Under Management (AUM): In October 2024, AUM were in excess of ~$13T and had experienced a ~20% cumulative annualized growth rate (CAGR) since 2008. Number of ETFs: Over 12,000 ETFs listed globally. Market share: ETFs have more than doubled their market share relative [...]
Dividends can be a great way to return value to shareholders. They do, however, have drawbacks. Do NOT fixate on dividend metrics. Instead, analyze how companies allocate their capital. They can: reinvest in the business; debt reduction; merge or acquire other businesses; distribute dividends; and/or repurchase shares. Typically, companies employ one or more of the [...]
As a follow up to my recent 10 Valuable Lessons To Achieve Financial Freedom post, I look at how we can overcome behavioral biases that influence and often lead to suboptimal investment decisions. Behavioral biases are a systematic pattern of deviation from rationality in judgment. These biases lead to decisions based on emotions, cognitive errors, [...]
Becoming financially free does not need to be a daunting undertaking. Here are 10 valuable lessons to achieve financial freedom. Develop a Wealth Mindset If you think you can, you can. If you think you can't, you can't. Becoming financially free starts with having the right mindset. Focus on opportunities rather than limitations. Wealth [...]
Summary The company’s total investment return since going public in 1992 grossly exceeds that of the S&P 500. Consistently increases its dividend but is more of a growth stock than an income stock. Unique business strategy enables it to generate free cash flow that is fairly similar to operating cash flow. Business model now allows [...]
