Here's the WORST Investing Mistake You Can Make

Yield traps are one of the worst mistakes we see new investors making. A high dividend yield may look attractive, but there's no such thing as a free lunch. Often a high yield is a sign of a distressed company. We place a much greater emphasis on track record as opposed to yield, since companies with a long track record of dividend growth are likely to do all they can to maintain that record. Let's look at how we can avoid yield traps.

RESEARCH PIECES USED IN THIS VIDEO:
1. How to Build a Great Dividend Portfolio

CHAPTERS:
00:00 Intro
00:21 What is a value trap?
02:20 One example: VFC
05:45 Three causes of yield traps
07:20 Another example: WBA
10:22 Identifying yield traps
12:19 Conclusion

ABOUT US:
This video is brought to you by Nanalyze, a media and research firm founded by finance professionals with decades of experience. We share insights about #DisruptiveTechnology #stocks in a language that is future-proof and easy to understand.

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[Nanalyze]

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[absw]

One mistake I used to make in investing was kind of the opposite of this. I would frequently dismiss really good investment opportunities just because the multiples were too high. I'm not saying valuations do not matter, but more often than not, the best companies with great moats, the long term compounding machines, are simply going to look a bit expensive. You're paying a premium for less risk, which I'm now ok with. I finally decided to pull the trigger on MSCI, even though the price/sales looks a bit high.

[ASenseofCapital]

For me a simple approach to avoid hitting value traps is to have the standard of investing just in the best companies. Unfortunately, a consequence out of this that you might miss the best deals but on the other hand, you are not doing investments just because of potential low but actually high valuations.

[dorktenderloin]

Can you also do a video on how you've been finding cool places to record in lately? I like the nature backgrounds in addition to the content. :)

[IlIlllIllIlIIIll]

Ugh. Value traps are always so tempting. But of course, time in the market, time in the market, time in the market.

The human brain was not designed for the stock market.

[dangerbuoy]

I’ve thought tiger leaping gorge (hall of fame geography name) would be a cool place to visit. Is it difficult to travel in mainland China? Maybe not so much now, that you’re a resident of Hong Kong?

[mtoporovsky]

Worst mistake:not to count erosion from inflation with this "high. Divedend" and get hope on growth

[yourportlandlifestyle]

with WBA~ all you need to do is go into one ~ empty shelves

[mAny_oThERSs]

If I'm cool enough, can I join the discord for free?