Restauranteur A and B both have profitable restaurants and $1 million in savings. A invested his profits in stocks. B invested his profits in the building that houses his restaurant. A's resto is bankrupt. B's is on sabbatical. Vertical integration as a de-risker.
Trade offs :) I might argue that stocks won’t be paying any dividends over 2 years or that B could turn his restaurant space into a grocery store, testing clinic, or some newly demanded retail space, but I do agree with you. Though, dividends are a shitty consolation prize.
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Would rather have a better chance of keeping the big winner with the risk of losing out on the dividends. Eggs in many baskets vs eggs in one basket. Tough to decide.
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Do you know how much dividends and capital gains from 1 million dollars over the past 10 years would have given you? You would probably have 3 to 4 times as much money now, saw it drop by about a million during the last correction, then saw it bounce back about 400,000.
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