The surest and safest way for investors to build wealth is to take advantage of the power of compounding. Compounding is the process of accumulating the time value of money forward in time. For example, interest earned in one period earns additional interest during each subsequent time period. One way for investors to take advantage of this process is by investing in dividend paying companies. Such companies are not hard to find. Indeed, most well established companies, both foreign and domestic, pay dividends. The key to unlocking real gains, however, is to, first, invest in a company that both pays a great dividend and is committed to growing that dividend over time. [more]
It takes a man a long time to learn all the lessons of all his mistakes. They say there are two sides to everything. But there is only one side to the stock market; and it is not the bull side or the bear side, but the right side. It took me longer to get that general principle fixed firmly in my mind than it did most of the more technical phases of the game of stock speculation.”. --Jesse Lauriston Livermore, 1923, Reminiscences of a Stock Operator [more]
"When management owns stock, then rewarding the shareholders becomes a first priority, whereas when management simply collects a paycheck, then increasing salaries becomes a first priority."
-- Peter Lynch, One Up on Wall Street