The Dangerous Illusion of ???Free Money??? as An Investor

The rational investor cares about one thing; total investment returns.

Total returns for stock market investors = capital gains + dividends — investment fees & taxes

All that matters is, what is my account balance? If you have a $100,000 portfolio, the $100,000 is all we should care about. We shouldn’t care whether that $100,000 came from dividends or capital gains (increase in share prices).

Except we do care. We care a lot.

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