Wednesday, July 25, 2012

Investing for Cash Flow vs Capital Gains

As I venture into stock investing in the Philippines, I realized a few things.

1. You can invest for cash flow for slow and steady returns or capital gains for fast & quick returns.
2. There's a lof of greedy businessmen and managers in the Philippines

I thought about it for a long time and though capital gain is very tempting and its what fuels liquidity and traders in the market, I realized that its better to invest in cash flow.

I like the steady stream of income from dividends instead of varying gains and losses each month. For one thing, its stressful and second, it takes a lot of my time. I like to never worry about if my holdings went up or down, but only concerned and happy about the checks that comes in every month.

I think, in the longer term, stock investing mainly for cash flow is more secure and fun. Because you get paid after you buy a stock for a lifetime.

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