dtcwee: The Value of Nothing

Où sont les Snowflakes d'antan? Hipsters take heart: you have a historical precedent. Precarious working conditions existed in 18th Century Britain. Families in Bath and industrial cities like Manchester survived by chaining together multiple 'gigs' to form £60 (or 1200 shillings) per year.

1960 - 2017: U.S. Wage Growth : 6.26% p.a. S&P500 Dividend Growth : 5.97% p.a. U.S. Inflation Rate : 4.05% We don't normally look at dividend growth, focusing on yield instead, which for the last 20 years has fluctuated between 1%-3%. This gives the illusion that dividends are constant - stagnant even. But market value of shares have increased over the long term, which means dividend values have followed. Between 1960 and 2017 nominal dividend income from your S&P500-tracking portfolio would double every 12 years, assuming you didn't panic-sell in 1987, 2000, or 2008.

Landlords have existed for centuries, and there are many stories of bad landlords, who harm their tenants, their investments, and ultimately themselves. When I have been thus guilty, it's often been through ignoring the Seven Deadly Sins' wise messages of moderation. Sometimes you just couldn't be f****d. Bills due. Repairs required. Tenants' demands (if you're lucky to have them.) Frustrations can build to the point where you ask yourself if any effort is worthwhile. Sometimes the reluctance to act comes without any precipitating event. You just wake up in a funk, thinking only of writing the day off and staying in bed. What makes things worse is that you know this is sloth. Or is it?

Perhaps without realising it, modern-day landlords are part of an ancient tradition, and are uniquely positioned to benefit from the timeless wisdom distilled into the seven deadly sins. While it is good to appreciate our blessings, we know that it is wrong and somewhat offensive to be too proud. Envy soon gives way to eye-rolls as acquaintances flood social media with posts of their new pet, relationship, child, or house. But what is Pride ? Is it Pride to reveal I bought in at the bottom of the market? Is it Pride to celebrate being mortgage free? Is it Pride to write 'landlord' as my occupation? Is it Pride to expect my wishes regarding the property to be carried out because I own it? Is it Pride to consider that my time in the market makes me an authority? (Hint: yes, obvs. See 'Dunning-Kruger effect')