Cool Investment Rules - Looks great for dividend payers








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Great topic.

If you are conservative with your money, invest in anything indexed. You win in the upturn, never in the downturn.

I think these rules focused too much on the quality but not the quantity. The most important rule of all is the amount of money you put in there to work for you. I would say at least 90% of your liquid assets, plus a healthy amount of margin, which can go up to 25%.

Depends on your net worth. Some people can’t afford to invest much, so, quality is for them. And maybe putting their eggs in only one basket.

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Why do all the rules use different time periods for their validation? That’s a red flag to me. If I get to pick the time period, then I can make almost any statement about the market true.

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BTW: I am not the author. These are not made by me, just got a glimpse from internet and posting it here.
It is posted for information purpose.

If you find it interesting, feel free to use it. If you feel it is not right, ignore it. I do not know the author too as I stored these in my computer over a long time, when I started investing in stocks.

I should have said this in my first post !!

I liked it, saved it and to maximum extend I follow these.

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I think many of those rules are outdated. For example, Pitney Bowes is one of those “dividend aristocrats” or was until recently. IBM was a fabulous stock to own for decades.
Making money in equities is the mirror image of making money in real estate. If there were a way to buy a share in every home and apartment building in American a person doing so would barely outperform inflation over time. Successful real estate investors are typically selective and use leverage.
Most stock pickers, by contrast, lose money, even in a rising market. If they use leverage they lose even more. The most successful strategy for the last half century has been to just buy the market through something like an index fund which tracks the S&P 500 and make no attempt to pick individual stocks. The index churns naturally based on who the most successful players are at any given time.
How much you invest is less important than when you start. Two examples - if in 1980 you had 40,000 to invest and you put it in an S&P 500 index fund and did nothing else - never saved another penny in your life - you’d have about 3 million in that account now. And if a person starts saving $2000 a year at age 20 and another person starts saving $4000 a year at age 30 it is likley that the 30 year old WILL NEVER catch up with the 20 year old. That’s the power of compounding. If you didn’t learn that when you were young make sure the kids, the nephews, etc. do.

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Obviously outdated. Even WB change with time… invest out of his comfort zone of consumer staples, and utilities. Invest big in AAPL! Invest in airlines! Something don’t change though… economic moat :slight_smile: is a necessary condition for investment. Buy with a margin of safety.

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I think that Jil is bringing to the forum something that can validate your argument too. He may be saying things that a disciplined person has applied in his life, in his way to invest.

Yes, the rules change all the time, but the basics of discipline and intelligence to not put your eggs in one basket stand. I also believe these principles in this topic are being followed by somebody with a long record of investing. Not me, not your wannabe investor.

Perhaps you remember the period before 2011. I can bet a $1 million coin that not many investors in this forum were willing to invest in real estate. If I ask them now if they would like to go back in history to go drunken sailors buying properties, they would say yes. Why? Things change, except that at that time they were cautious, and that’s the thing about investments, you may defeat the principles brought by Jil and become a billionaire, but you are on your own, you were advised by others whom know how to invest their money, but you went along to fiscal or economic disaster if you don’t follow some principles of investing.

Please send me your US$1 million worth of coins. Do you have enough $1 million? I think a few others did invest in RE during that period. That period is too obvious not to either buy houses or stocks… only issue is do you have the money :wink:

buyinghouse, I think It should be BITCOIN instead of COIN :laughing:

I tried to buy in 2010. Didn’t close until January, 2011. It was bank owned and their side of the paperwork was slow.

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