On retirement, happiness and life
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Steady Compounding
All big things come from small beginnings
Excerpts:
Focus on total returns, not income investing
The desperate search for yield has led to a number of people choosing to invest in income funds, or in mature companies providing a high dividend yield. On the surface, it might sound sensible, but it is erroneous. It may lead to investors underestimating the risk of investing in high yield instruments. Moreover, what is less obvious is the opportunity cost of focusing on yield only, as opposed to the total returns of a compounding company.
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