Investment Strategy #1

Investement strategy as follows:

  • passive income through dividend growth investing
  • limited number of high quality companies (eventually in the range of 20-30)
  • reinvest all passive income
  • inject new capital every month
  • target single purchase per month
  • be prepared to increase the rate of investments when blood is in the streets
  • utilize changes in currencies when possible
  • buy & hold, selling something might sometimes be the best thing to do but to try to avoid ending up in that situation

Stock selection strategy:

  • diversify, diversify and then diversify a little bit more (focus on global companies or companies operating in large enough market areas)
  • home market bias is evil
  • target company must be able to benefit from the following: growing population, aging population, people’s fear of death, people’s tendency to kill each other, people’s tendency to exchange long term benefit for short term pleasure
  • mix dividend growth stocks and high yielding stocks, target portfolio yield growth close to average inflation rate