--- type: "Topics" locale: "en" url: "https://longbridge.com/en/topics/40285287.md" description: "I've noticed that many Longbridge community members don't seem to realize that the actions you take are related to the size of your capital.The smaller your capital, the stricter the conditions for making a move. This is self-evident, just like in warfare, the tactics for an army of 100,000 are different from those for 800.So, you can't just see Warren Buffett or some influencers make a move and impulsively follow their trades with all your money. They invest 1 million, you invest 1 million. Their 1 million can be recouped in a heartbeat, but your 1 million represents half a lifetime of savings. They can be stuck for 10 years without a problem, but you'll be desperate after just 1 year.Always assume the stock price could fall further. Always have a Plan B.That's why dividend stocks are the most beginner-friendly investment targets. Buffett said dividends are the ultimate exit strategy. For a stock with a 5% dividend yield, even if it halves after you buy it, as long as the dividend coverage is good and the dividend isn't cut, you'll break even in ten years just from the dividends. Moreover, dividends grow, and you can further reduce your holding cost through options strategies and dividend reinvestment, making the actual break-even period even shorter.Take $Unitedhealth(UNH.US) for example. Without that 3% dividend, I might not have held on through the middle. Therefore, I'm more cautious with stocks that don't pay dividends, like $Paypal(PYPL.US), $Fiserv, Inc.(FISV.US), and $Duolingo(DUOL.US). You need to leave a much larger margin of safety.$Unitedhealth(UNH.US)$Domino's(DPZ.US)$Fiserv, Inc.(FISV.US)$Paypal(PYPL.US)$Duolingo(DUOL.US)$Trade Desk(TTD.US)" datetime: "2026-04-29T12:28:07.000Z" locales: - [en](https://longbridge.com/en/topics/40285287.md) - [zh-CN](https://longbridge.com/zh-CN/topics/40285287.md) - [zh-HK](https://longbridge.com/zh-HK/topics/40285287.md) author: "[出手金银邓王爷](https://longbridge.com/en/profiles/18153283.md)" --- # I've noticed that many Longbridge community member… ### Related Stocks - [UNH.US](https://longbridge.com/en/quote/UNH.US.md) - [PYPL.US](https://longbridge.com/en/quote/PYPL.US.md) - [FISV.US](https://longbridge.com/en/quote/FISV.US.md) - [DUOL.US](https://longbridge.com/en/quote/DUOL.US.md) ## Comments (10) - **深海农夫 · 2026-04-29T17:31:27.000Z · 👍 2**: Software and AI should be a powerful alliance, not a life-or-death situation. AI is only a bubble if it doesn't land in practical applications. - **出手金银邓王爷** (2026-04-30T07:43:09.000Z): It's true that some software will be replaced by AI, but definitely not all of it. Wall Street doesn't want to differentiate; the money they make is from stirring up emotions 😄 - **APTAPT · 2026-04-29T13:41:48.000Z · 👍 3**: The most fundamental issue is copying others' homework, wanting to take shortcuts and get something for nothing. Daring to invest heavily in a company you haven't even researched, you won't be able to hold on during a big drop. When your logic for buying and selling is based on others, losing money - **出手金银邓王爷** (2026-04-29T13:47:26.000Z): Right, money that's beyond your own understanding, even if you earn it, you'll likely have to give it back sooner or later👍 - **奥马哈的信徒皮球 · 2026-04-29T13:35:38.000Z · 👍 2**: Adobe also has a sufficient margin of safety, with a $25 billion net share buyback. - **出手金银邓王爷** (2026-04-29T13:46:09.000Z): I've been observing ADBE for a long time but didn't pull the trigger, for three reasons:First, it doesn't pay dividends, which makes it less secure.Second, I already have significant exposure to softw - **奥马哈的信徒皮球** (2026-04-29T13:51:23.000Z): Dividends from U.S. stocks are subject to a 35% capital gains tax, so share buybacks and cancellations are generally used as shareholder returns, or like Pinduoduo, using unrestricted surplus to inves - **出手金银邓王爷** (2026-04-29T13:58:59.000Z): Share buybacks and dividends each have their own advantages. Buybacks are indeed tax-free, but they are less certain than dividends. The so-called 'drag' of dividends depends on your perspective. Deat - **护花使者爱理财 · 2026-04-29T12:49:57.000Z · 👍 3**: The poorer you are, the more you gamble; the more you gamble, the poorer you become. - **出手金银邓王爷** (2026-04-29T12:51:16.000Z): Few people are willing to get rich slowly😄