QUOTE(lowyeap @ Jan 5 2017, 09:24 PM)
Hi guys, I have been investing for more than 1 year since i graduated, I've been trying few methods and strategies to earn from stock market. I try traded daily, speculate and some portion of money invest for dividend. After one year, I finally think that I should stop speculating and invest based on fundamental and value like Warren did. So, I've been thinking hard lately should I buy solely dividend stocks? Let's say if I have RM100k in my portfolio with average dividend yield of 6%, I'll get RM6k annual which is RM500 monthly, quite decent thou. But, at the same time, dividend stocks are usually blue chip which have stable growth, in other words, less capital appreciation. I need opinions from you all please since u all are much more experience than I am? thanks guys
That really depends on what is your investment strategy, your risk appetite and your investment horizon, among other things.
Value investing is fundamentally different from trading, so the switch can be psychologically difficult for many people.
You have to really be committed to investing for the long term (think more than 5 years; in fact 10 years is the norm; and Warren Buffet himself has stated that his favourite holding period for a stock is forever).
Which also means disassociating yourself from all the short term negative news and possible volatility, and basically close your eyes and ears, to the point where you can forget about the stock for several years and it wouldn't bother you.
As you said yourself, dividend stocks are generally stable companies which have less capital appreciation (though actually stable dividend stocks are not necessarily blue chips) so they tend to be very boring stocks, which may not suit everyone's taste.
Personally, I avoid all companies which are highly linked to Malaysian politics, and all commodities, and most technology companies.
But that's just me, a novice.