Part 5/9:
While Bob has shared numbers related to market performance, he also delves into the math behind his returns. He clarifies a common misconception regarding the relationship between investments and dividends, explaining how dividends from his shares contribute to the overall growth of his portfolio. For instance, he received a dividend payment of $23 from VO, depicting how passive income from dividends can complement capital gains.
His crystal-clear breakdown elucidates the underlying math that can seem confusing to novice investors, especially in how they interpret gains and losses over time.