If you want to be a true investor, learn to love lower prices of good companies stocks

You may laugh at me and think I must have lost my mind. You may ask who in the world loves to see lower prices of any stocks they own. But this is exactly where an investor differs from a trader. For traders, they need to constantly take actions in and out of stocks. For them, of course the only thing they care about is higher prices of stocks, nothing else. I can understand. But for investors, I mean true investors with a long-term horizon (e.g. 5-10 years or longer), what they are focusing on is the fundamentals of a business, or in other words, whether the intrinsic value (IV) of a stock has increased or improved. If a stock's IV has improved due to good business execution, a low price of its stock would only mean a good bargain for it. And usually such good companies would pay good dividends that tend to keep increasing over time. If you reinvest the dividends for compounding, then you'd really benefit from low stocks price as your dividends will buy more shares of the stock when it is low and in return you get more dividends, which will buy more shares if the stock stays low. This kind of positive cycle will continue with cumulative momentum and over time you will be really handsomely rewarded. This is how Buffet becomes so rich. For example, he bought Coca-cola (KO) 40 years ago and he has been reinvested KO's dividends since then. Over years, not only the dividends have already been many times more than his original cost for his initial investment, they have also tremendously enlarged his KO position so much that he is now collecting hundreds of millions of dollars each year from KO's dividends. And this income will only become bigger and bigger as long as KO exists and is doing well. That's why when Buffet recently invested in IBM, he said he hoped IBM stock price would not appreciate too much and just stay low.

This is what I'm currently doing to establish and enrich my retirement portfolio with good companies stocks when they are cheap in valuation. With this kind of investor's mentality, I actually get more excited when I see the plunge of a stock of my interest. Today's is one of those days when I see Intel (INTC) got crashed due to its disappointed earning report. As you may already know, I like Intel and have already got shares of it. It got a hair cut for a 6% drop today. For long-term investors, this should be a great buying opportunity and with naked puts, I can further juice up and reduce my cost of investment.