breaking the anxiety over portfolio value

Part of my evolution in thinking has been in the quest to understand the link between my future security and my portfolio value at any one time. Like many unsophisticated, amateur investors, I started out feeling good when the portfolio value was rising and feeling bad when it fell. Interestingly, when it rose, my fear of falling also rose, so there wasn't any true sense of security or satisfaction attached to watching valuation. However, as I migrated from the growth to the income/value side of the investment universe, I learned a simple fact; companies tend to be consistent in their approach to the owner/stockholder. They continue dividend payments regardless of the markets view of their share price. And when the share price decreases, they often buy back more shares, which has the effect of boosting share value. If their earnings are growing, the dividend tends to grow. All this, somewhat independent of share price at any time.
This is another way of saying 'buy the company, not the stock'.
If management is mature and skilled at growing the business, staying profitable and respecting the interests of the owners, then cash flow in the form of dividends, as well as share value, will increase over time.
So, I periodically check the monthly income of my portfolio in the form of dividends and interest. I also look at the overall value of the position, since I'm a DRIP fan as well, and my positions grow organically with reinvestment of dividends

Inflation-adjusted yield-on-cost would be a more precise way of watching growth in passive income. When I come across an adequately sophisticated portfolio management tool, I'll try to build that into my monitoring of the portfolio.

Market driven changes in valuation of my holdings certainly have an effect on the total portfolio value, but the dips are cushioned by dividends, and the rising monthly income demonstrates the rising "purchasing power" of my holdings. It certainly relieves me of the anxiety of chasing the next 'growth story', as long as I see that monthly passive income rising.

til next time...