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