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Business: negotiate like Warren Buffett
a key skill from The GOAT
After achieving financial independence in 2002 by investing only in dividend paying stocks, I began to realise I didn’t have to sacrifice some seventy hours a week or more of my life anylonger. Having largely passive cash flow, post tax more than we needed to live on, gave me choices and far beyond what a pile of FU money offered
At that time in time I hadn’t switched to dividend paying stocks, and was holding mostly tech stocks. The dot com bubble was inflating and although I was nervous about valuations, still hadn’t moved out of the sector. In any case, I had a rather substantial amount of cash, about three years gross pay, saved and maybe the same invested in the stock market.
And that is a fundamental difference between myself and the FIRE, index investing or stock picking crowd; I have cash flow simply from dividends, while these strategies all require stocks be sold at a future date in time to finance financial needs. Clearly this is a very, very risky strategy as forecasting stock prices is at best an uncertain exercise. In fact…
