Doctor Strange should have invested in stocks
Updated: Oct 4, 2020
In the movie Batman Begins, a young Bruce Wayne left Gotham City and spent seven years travelling the world training in combat and hanging around criminals. He got involved with the League of Shadows criminal organization and burned down their temple. Afterwards, he made a call, got on his private plane and landed in Gotham City.
In Ironman, Tony Stark was captured and kept in a cave for three months. After escaping he was seen in his private jet and driving in his Audi to a press conference.
Majority of people would lose their house and car if they didn't make any money for two months. Even doctors and lawyers have to work to maintain their lifestyles. Look at what happened to Dr. Strange after his hands were crushed in a car accident and couldn't work as a neurosurgeon. He quickly went from living the high life in New York City to broke and then beaten by petty thieves in Nepal.
This brings me one of Warren Buffett's famous quotes:
"If you don't find a way to make money while you sleep, you will work until you die". -- Warren Buffett
What Warren, multi Billionaire investor, is taking about is passive income.
Passive income is income that requires little to no effort to earn and maintain. You don't need to trade your time for money as you would with a part-time or full time job.
Dividend stocks are one of the simplest ways for investors to create passive income. Let me explain.
When you buy stock in a company, you are basically buying a small part, or share, of that company. Your ownership entitles you to a share of the company's profits and losses.
In any business it's the employees and managers that do the hard work of bringing in the sales and keeping costs in control. The Board of Directors and CEO look at the financials and decide every three months how much profit is returned to stockholders, this is called the dividend payment.
They do all the work. You as the investor are required to do nothing but collect your dividends and decide how to spend it.
Apple stock pays a dividend every three months. Apple started paying a dividend in 2012. Since then Apple has doubled its dividend payment. The stock price has also gone up almost 4 times (from $80 to $320). Investors who bought the stock were not required to do anything afterwards. Stock and dividends went up.
Getting the latest iPhone with three cameras on a monthly payment plan will cost you money every month. You will probably need to upgrade your phone in two years so more money will be spent. After five years the phone will most likely be worthless.
Life is all about choices. You need think long term and make the hard decisions.
Wayne Enterprises and Stark Industries kept paying Bruce Wayne and Tony Stark dividends. The money was regularly deposited into their bank accounts and people like Alfred and Penny made sure staff salaries and the bills were paid on time. Otherwise they would have been nothing left when these two returned home.
If Doctor Strange was so smart he should have read some books on investing and learned the power of passive income.