Investment Strategy

My Six Steps Investment Strategy  



Step 1) Build a Moat: Companies have moats why not portfolios?


Buy large market cap defensive stocks (healthcare, consumer goods, and utilities) with long history of dividend growth. At least 60-70% of my entire portfolio should be "safe".


Step 2) Become a real estate Mogul: A wise investor once told me "Son, the Lord keeps making these babies but he sure ain't making more land." 




My second step is to buy large and small "sleep well at night" reits. I am not bias to types of reits. Healthcare, hospital, family tenants, etc. If you need property then I will invest in it.   


Step 3) Buy at fair market value based on historic P/E ratios and dividend yields. 




I can never guess a bottom so I'm fine with buying at historic fair value instead of "discounts." That doesn't mean I'll avoid good buys if the right occasion shows up.  


Step 4) My ideal portfolio is 2/3rd Moat, 1/6th reits, and 1/6th everything else. 





Step 5) Diversification. 



I am not afraid to hold many companies. What is fair value today might become overvalued tomorrow. Ignore the 30 stock limit and focus on fair market good paying stocks. I wouldn't mind 100 type of stock ranging from EMR, CAT, DE, JNJ, GIS, SO, etc.


Step 6) Monthly Loyal3 strategy. 




On the first of every month I would automatically buy $10 of all the stocks in my Loyal3 portfolio; no matter the price! This is a counterbalance to my regular large buys and will guarantee a good portion of my dividend income in safer giant companies.

4 comments:

  1. Hey,
    Have you heard of a guy named J. Massey? He's a podcaster who's big into real estate investing, and cashflow. From what he say's(haven't actually seen this) He's tied to Robert Kiosaki and Rich Dad Poor dad organization. Last thought have you ever though of dividend etf's?

    -SoW

    ReplyDelete
  2. Hey,
    Have you heard of a guy named J. Massey? He's a podcaster who's big into real estate investing, and cashflow. From what he say's(haven't actually seen this) He's tied to Robert Kiosaki and Rich Dad Poor dad organization. Last thought have you ever though of dividend etf's?

    -SoW

    ReplyDelete
    Replies
    1. yes i've heard of dividend etfs but they are too expensive at the moment. I'm going to use the natural progression of the market to let them fall down in price before buying them, SCHD and SPHD are two top income etfs i'm planning to buy

      Delete