The new paradigm

Something just clicked for me last week.

I have come to realise a new paradigm is at hand. It doesn't apply to the Sydney property market but it does apply to the stock market.

The new paradigm is forget about buying stocks for growth. The stocks that will make you money through time will be stocks that grow slowly but with high probability. In addition, those stocks need to be cash flow generative so they can buy back stocks or pay dividends.

Nothing especially new about this revelation except that the world is now a vastly different place. Do you notice that there was a palpable sense of deterioration in the Australian economy over the past two weeks ? I wonder what is our budget deficit this year ?