Your Greatest Enemy Is You — Behavioral Finance in Dividend Investing

DividendHorizon
ILLUMINATION
Published in
10 min readApr 2, 2024

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Behavioral Finance in Dividend Investing
Image by Bulat Silvia on Canva

It all began in the 1987 market crash, an event that sent waves of fear through the financial world. Investors were in panic, selling off their assets and desperate to cut the losses.

At the same time, in the picturesque town of Omaha, Nebraska, lived a man who would become known as one of the greatest investors in the world. Amidst the uncertainty and the chaos in the market, he was looking behind the red charts, daily trends, and shocking news. And so, he spotted an opportunity. He saw a beacon of consistent performance and persistent consumer loyalty — Coca-Cola.

As the years passed, the wisdom of his choice became increasingly apparent. Coca-Cola continued to grow, its dividends rising year after year like clockwork.

This man’s name is Warren Buffett, and he still holds Coca-Cola stock today. His wise investment decision brings him $736 million in annual dividends.

You might be used to thinking that dividend investing strategies hold a unique allure of promising both capital appreciation and a steady stream of income. You might even hold all the tools you need to spot similar opportunities today.

But would you have the courage to buy that opportunity and hold your investments through the turbulences of a market crash?!

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DividendHorizon
ILLUMINATION

Helping people achieve Financial Freedom. Author of "Live Off Dividends" and "The Art of Investing". My website: https://www.dividendhorizon.com/