Post by
Obscure1 on Apr 08, 2022 10:10pm
One's real cost base
Clem brings up an interesting topic which is the perspective on one;s reference point cost base.
I agree that SU's divi is 8% on what I paid, but the reality is that history doesn't count with investments as today's price is the only relevant number.
One's historical cost base can either be the source of joy or pain depending upon the current market but in reality, the cost base is irrelevant other than for tax consequences.
At this stage of my life, I can look at my inability to perform certain physical feats that I could do in the past or the fact that I'm now invisible to the pretty young girls as a source of sadness. Or, I can look at my current health and age as my real cost base and make decisions based upon looking ahead.
The day when I no longer look forward will hopefully be the last day of my life. If we treated our investments the same way, I think we would be all be better investors.
Comment by
RagingBull3 on Apr 09, 2022 8:24am
And then your dividend yield on "original investment" would be ~400%+ instead of 168%. You would be swapping out "Suncor #1" for "Suncor #2".... but now getting 400%+ on "original cost base" All just my opinion/view/thinkinking
Comment by
meritmat on Apr 09, 2022 2:12pm
Hey Boss. If SU keeps going up I'm sure the pretty young girls will find you attractive again)
Comment by
Obscure1 on Apr 09, 2022 3:45pm
meritmat: lol The rare sneaky sideways glance from a PYT is always a good thing for the ego, but seeing my beautiful 70 year old wife's face smile when I come into the room is all I need. Seeing a frown on her face and her hands on her hips is never a good sign, but it just lays the ground work for making up if I live that long.