#294~ Very Safe Dividend Growth Stocks Too Cheap To Ignore!

Oh no, the market is crashing, we're all okay, actually.

You know, it's funny how media and social media will really push the panic button and say the market is crashing, stocks are tanking, look out, panic.

But what if instead of the market is crashing, we said the market is 10% less expensive than it was recently? It doesn't sound so scary now, does it? But if it doesn't bleed, it doesn't lead, so they gotta make things bleed.

And it's really curious because the stock market is the only place that I know of that people will panic and run away screaming with their hair on fire from sale.

But every other sale, like Black Friday or Amazon Prime Day, everybody's clamoring to get in.

It's only when the stock market goes on sale that everybody wants to get out in a panic.

But a quick disclaimer, especially if you're new here, you have to understand that buying the entire stock market, like ticker VOO, which is the S&P 500, kind of like the top 500 biggest companies in the United States, Or VTI, which is almost 4,000 publicly traded US companies and very close to the entire US market.

Because when you buy any individual stock, I don't care who it is, it can go to zero.

It has that single stock risk.

But when you buy that entire US market, there is no single stock risk.

And over every 20 year rolling period, the U.S. stock market has never lost money.

So it's a pretty, pretty damn close guarantee that you are going to make money in the U.S. stock market.

And if the U.S. stock market ever completely collapsed and devolved into oblivion, then our portfolios really would be the least of our worries.

But here we're going to talk about some individual stocks because some really great companies are starting to go on sale and look a lot cheaper than they were recently.

And before we get into names, I want to explain one thing really quickly, which is the P.E. ratio, which stands for price to earnings.

And all that it does is it tells you how much you are paying for every dollar that a company earns.

earns so if they have a high PE then the market is expecting significant growth and the stock really is priced for perfection and any slowdown and it can get absolutely clobbered.

And the 10 year median price to earnings is a very useful buy zone barometer because when a great company's price to earnings drops below that line and nothing is permanently broken with the business that's when I get interested.

Now one quick personal example from my portfolio is Kinsale Capital, ticker KNSL, which really is a great insurance company, but earnings growth began to slow and the market repriced it and the PE dropped from 35 to around 15, which shows you the risk of overpaying for growth.

Oh, and one more thing.

All of the data we're going to be looking at today is backwards looking.

History tells us a lot, but it is the future that matters the absolute most.

And none of us has access to that data.

But if you do have exact future earnings data, please drop me an email, russ at temperative evidence dot com, because I would love to talk to you.

But I also don't want to look back five years from now and say, oh, Why didn't I buy? It looked so obvious.