Masters in Business · Wednesday, August 26, 2026
David Bonson explains that dividend growth investors can benefit from market volatility, unlike those who simply endure it. By automatically reinvesting dividends, these investors purchase more shares when prices are low, creating an 'automated compounding machine' that amplifies wealth creation over time.
“So there is therefore no way to escape the fact that you are mathematically benefiting because you are already compounding. Your return goes where it goes and then you're getting more.”
“The next year, the next year. Now you're getting more purchases of the thing that is compounding. So it creates an automated compounding machine within a compounding investment.”
“every time the market's down, I am buying more shares of the things that are in the future are going to be creating cash flow for me.”