Thursday, January 8, 2015

(#1) You Have More Than You Think, By David and Tom Gardner



Started:  12/29/204
Finished:  1/10/2015

This is an older book, but a good introduction to stock investments.

An investment strategy that they recommend:
1.  Get the list of the Dow 30 companies.
2.  Obtain the dividend yield and the price per share for each stock.
3.  Sort the list by dividend yield highest to lowest.
4.  Exclude from consideration all but the ten highest yielders. Exclude the highest yield stock if it has the lowest share price.
5.  Sort the remaining nine or ten stocks by share price, lowest to highest.
6.  Buy as many of the first four stocks as you can afford, in equal dollar amounts.
7.  Eighteen months and a day later, go through steps 1 to 5 again.  Generate your list of the new Foolish Four and make any transfers necessary.
8.  Retire and/or write a financial book.

 A few other takeaways:

1.  A single dollar a day.
2.  Health risk of credit borrowing.
3.  Invest dollars not needed for 5 years.
4.  Common stocks over mutual funds.
5.  Use Sharebuilder for DRP's.
6.  Invest in "Great Companies" and the "Foolish Four" and "What You Are" stocks.
7.  No single stock greater than 15% of your portfolio.

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