Dividends Still Don't Lie: The Truth About Investing in Blue Chip Stocks and Winning in the Stock Market

Chapter 1. First Things First

We don't receive wisdom; we must discover it for ourselves after a journey that no one can take for us or spare us.

—Marcel Proust

I am not a therapist, and this book is not a journey into navel gazing and self-discovery. That being said, you have to get this part right.

Investor psychology and sentiment play a significant role in how you approach investments and the investing process. In my experience the most successful investors have had an end goal in mind that they wanted to achieve, which necessarily dictated the majority of their investment decisions. This is not to say that you can't be a successful investor without having a game plan mapped out, but understanding your motivation for putting your hard-earned money at risk in the markets can help you avoid taking unnecessary risks.

With that in mind, forgive my waxing philosophical for a moment. If September 11, 2001 has taught us anything, let's hope it's that life is precious and time is valuable. If you accept this premise as true, you would agree with me, then, that ideally, we should spend as much time as possible in this life to find and embrace our passions; those activities that make our hearts swell and our souls soar.

The reality though is that we don't live in an ideal world. As human beings we have to spend a significant portion of our time providing for the practical necessities: food, clothing, housing, transportation, education, recreation, and medication. The means by which we acquire ...