Many people talk about the impossible triangle of investing: growth, low valuation, high dividends. I think it sounds like a triangle, but these three elements constitute a three-dimensional space for investment.
Indeed, if viewed from a three-dimensional perspective, these three elements are an investment paradox that cannot be achieved simultaneously. If there is growth and the valuation is not high, it means that there will be no more dividends. If the valuation is low and the dividend is high, there will be no growth. The valuation with growth and high dividend will never be low.
As an individual investor, facing institutional predators with capital advantages, IQ advantages, resource advantages, information advantages, and technological advantages, if you want to win the game in the three-dimensional investment world, it is tantamount to placing yourself in the opponent’s In the big move, when you go in, you just think you can do it, and when you come out, you may not have any pants left.
However, if you add one dimension – time, and look at the three dimensions of growth, valuation, and dividends from the four-dimensional investment space, this impossible becomes possible.
Because capital pursues efficiency, demands returns, and pays attention to comparison. In the three-dimensional investment space, the only resource they do not own and are unwilling to invest is time. Time is the ultimate trick for individual investors. When we invest time as an exclusive resource, growth, low valuation, and high dividends will become possible at the same time. Pulling capital into the four-dimensional investment space is equivalent to dancing in our big move, forming a four-dimensional dimensionality reduction attack on the three-dimensional, thus achieving a breakthrough in the impossible triangle.
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