Questions from Readers – Philosophy of Life

SilhouetteI was recently asked about my ‘Philosophy of Life.’ Honestly, I had to think about this one. But for me, at this stage in my life, it comes down to this:

Invest in people, not things.

Of course, there will be those who ask about my investment strategy and a few of the reasons behind it, so here goes:

  • The true value in this type of portfolio reveals itself fairly quickly (CMV has no bearing)
  • Risk is typically minimal
  • Offers a Lifetime ROI
  • Unrealized gains are huge, and tax free

Tips for an excellent ROI:

  • Capital invested at incremental minimums offers the greatest net growth over time
  • Insider selling always fails and is too often led by inappropriate speculation
  • As you get older, buybacks are necessary
  • Smaller caps lead to better returns
  • Diversification is necessary
  • Don’t rush into emerging markets
  • Don’t always believe it when they talk about ‘junk bonds,’ make your own assessment
  • Index funds are a guaranteed fail

 

This portfolio may not be for you if:

  • You’re looking for short term returns
  • You’re worried about consistent debt/equity ratios (never happens)
  • You think your own capital shouldn’t be at risk