Apple Inc. (AAPL), Berkshire Hathaway Inc. (BRK.B): Investors Are Asking the Wrong Question

I could go on and on about the virtues of this approach, but I’ll spare you. The one thing that should be noted, however, is that, while it’s a tried and true method among the likes of Warren Buffett, this approach doesn’t offer a free ride. And, in particular, it requires significant research and behavioral fortitude — the latter is necessary to go against the madness of the crowds.

Here’s the takeaway

I apologize for reiterating, but this point is critical: Whenever you buy a stock, the first question that should come to mind is whether it will beat the S&P 500. And in answering this question, you should focus on valuation.

If you believe that the answer is “yes,” then go for it. But if you’re not completely confident in your conclusion, then there’s no reason to roll the dice.

That’s what Vegas is for.

Dividend stocks can make you rich. It’s as simple as that. While they don’t garner the notability of high-flying growth stocks, they’re also less likely to crash and burn. And over the long term, the compounding effect of the quarterly payouts, as well as their growth, adds up faster than most investors imagine. With this in mind, our analysts sat down to identify the absolute best of the best when it comes to rock-solid dividend stocks, drawing up a list in this free report of nine that fit the bill. To discover the identities of these companies before the rest of the market catches on, you can download this valuable free report by simply clicking here now.

The article Investors Are Asking the Wrong Question originally appeared on Fool.com and is written by John Maxfield.

John Maxfield owns shares of Apple. The Motley Fool recommends and owns shares of Apple and Berkshire Hathaway. Try any of our Foolish newsletter services free for 30 days. We Fools don’t all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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