Dan Bortolotti has written an excellent blog piece on why "dividend stocks are better" is a myth.

A few excerpts:

In 1961, Merton Miller and Frank Modigliani published a landmark paper that became the basis for what is now known as the dividend irrelevance theory. They argued that whether or not a company pays dividends should not matter to shareholders, because it does not affect their overall returns. Dividend policy simply determines whether investors end up with a share valued at $20, or a share worth $19 plus $1 in cash.

Investors categorize $1,000 in dividends as income that they will happily spend, but the idea of selling $1,000 worth of stock is “dipping into capital,” which causes them great anxiety. This idea is deeply ingrained in many investors, but it is an illusion, because a company that pays a dividend to shareholders is depleting its own capital.

Read the entire post, Debunking dividend myths, part one.

Here's a recent article by Larry Swedroe that highlights why entrepreneurs and other successful businesspeople frequently make bad investors.

The very success of the active investors creates a behavioral problem. Because of their successes, they’re not only confident of their skills, but they’re also confident in their ability to tolerate, manage and control risks. These behavioral traits can lead to them to the mistake of failing to consider that the strategy to get rich — work hard and take big risks, typically by owning a business — is entirely different than the strategy to stay rich — minimize risks, diversify the risks one takes and don’t spend too much. The former is about wealthaccumulation, the latter about wealth preservation. Those who have already achieved sufficient wealth to support a quality lifestyle can either focus on the preservation of capital by having a low allocation to risky assets like equities, or they can try to accumulate even more wealth by having a large allocation to risky assets.

Read the whole article, How you earned your money plays a big role in your investing mindset.

Shane Frederick of Yale University created the Cognitive Reflection Test (CRT) which measures a person's ability to effectively use his cognitive reasoning ability to override, when necessary, his brain's reflexive (and usually impulsive) decision making center.