Thursday, 10 August 2017

117. Goal and strategy considerations week 32, 2017

As of this month, there’s a new joiner to this site. The Strategies and aims page. This section will be updated on the fly and will showcase my latest considerations with reference to investing and earning a passive income.

Seen that just about anything in life is a process and therefore subject to ever developing ideas feedback with wisdom from hindsight.
Now, I find for myself that I have a Due Diligence policy in place by “investigating” any new positions for my portfolio. But, seen from a more realistic point of view: it’s nothing more than a quick background check on a certain point in time.

The process flow in the past:

I realize there’s some spare cash lingering around, doing nothing;
The amount of cash decides on what share prices are interesting to look at;
A selection (randomly, or so it seems) of shares is put under a magnifying (Google) glass;
Depending on type of investment (dividends or speculative) the current share price is matched against historic figures. In general, for dividend investing this has been of lesser importance.
The (at that moment) best looking company is then added to the portfolio without further ado.

Now, that didn’t sound all that sustainable. Sure I made some pennies but the scrapheap pile is way too large in my opinion. Time for some ducks in a row:

  1. New entries in portfolio: spread in approximate 1000USD/EURO bundles.
  2. Do not sell (with loss, unless there is absolute reason to).
  3. Yields >10% are preferred.
  4. Monthly paying stocks are preferred.
  5. Dividend aristocrats are preferred.
  6. …  
Especially, rule nr 1 may sound odd at first. Reason for this is that, having seen a LOT of other dividend-investors-blogs there’s one characteristic we all pursue: Diversification.

This list will be re-formulated, thrown away, started over, and (partially) wiped and refurbished. Base case is: I am finding out a route for myself. In all fairness: the aim of this route will chance just as much. Please keep following me on this path and please comment to refer to your website (and goals / updates) for interesting reading material!

If you have a minute, don’t hesitate to fill me in on your thoughts / opinions. Some good (and free) advice is always welcome. If you feel like connecting and sharing: please hit the Google+ follow button or find/follow me on twitter!
Thanks for stopping by and have a great day!

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